yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Amazon Stock Split?


2m read
·Nov 3, 2024

Today I'm gonna do something different and talk about when Amazon might split their stock with respect to what happened at Google. Now let me first mention that I called the Tesla split last year, and I will reveal my positions for Amazon later.

Now, some finance junkies are out there thinking stock splits don't affect the value, and once again, you have to be an idiot to believe the things you learned in finance. If we look back at what happened to Tesla, Apple, and Google, it's clear that splits do affect the value because it affects the Ponzi value—the only value that matters. Cheaper stocks are easier to shuffle and pump.

In the previous video, I showed how Amazon stayed flat over the past year while they made 30 billion dollars. That phenomenon is actually quite common; I call it the Google scenario in my research because Google stayed flat between 2007 and 2011 while the company made 29 billion dollars. Google basically had a ceiling at around 650 for four years, and it didn't break until they announced the stock split in 2012.

Back then, a 700 stock was uncommon and expensive, similar to what a 3,000 stock is today. Over the past year, Amazon had a similar Google-style ceiling at around 3,700. Now, that ceiling can break naturally over time with inflation, but I think Amazon's going to do it artificially with a stock split. Well, based on what happened at Google, I think we can all agree that Amazon will definitely split their stock within the next three years if they stay flat.

But I think it's going to happen within the next year if they stay flat because people are just less patient now. Furthermore, given what happened to Tesla and Apple, if they make that announcement, it will probably happen when they are releasing earnings.

As for me, I have a few bullish spreads that expire November 5th. The one highlighted is a call spread between 36 and 3,800 that closed around seven dollars today. So it's about a seven hundred dollar bet to win twenty thousand. I think it's a decent deal because thirty-six hundred dollars is familiar territory for that Ponzi asset, and these don't expire for a while; in fact, a week after earnings in early November.

However, I don't think it's going to hit that 3,800 max return mark unless Amazon makes a split announcement because, God knows, valuation is so.

There you have it. Now good luck and Ponzi up!

More Articles

View All
Did I quit med school? | How I'm spending my days living alone in Rome 🇮🇹 LIFE UPDATE
[Music] foreign [Music] Good morning everyone! Today is another day, and I’m going to take you guys along with what I do in the day because a lot of you guys have been asking: “Don’t you have med school? What are you doing today? What are you doing with …
Debunking 3 myths about air pollution | Nat Geo Explores
(upbeat music) - [Narrator] Ever think of how many breaths of air you take in a day? It’s a lot, like 20 thousand, give or take a few. All day, all night, our bodies are at work bringing in the good (bell dings) and kicking out the bad (buzzer sounds). Bu…
15 Things to Do After 7pm That Will Make You 1% Better
What does it mean to be 1% better? Exponential growth, compounding appreciation in your personal development, because every 1% builds on the previous one. And here’s what you need to keep in mind to achieve that: your day begins again at 7 p.m. We don’t …
How do you prepare yourself mentally to be an entrepreneur?
So how do you prepare yourself mentally to be an entrepreneur? What I will say is maybe borrowing a little bit from Buddhism or philosophical Hinduism, but it’s really this notion to try to not get attached to the outcome. Obviously, you’re going into en…
How to Win an Interstellar War
Could aliens destroy us from light years away? Mh, another day at the Kurzgesagt Labs, where we answer the most important questions with science. Today: how might civilizations wage war across light years? What kind of devastating weapons could they use, …
Nihilism: Embracing the Void of Existence
As far as we can observe, being ‘alive’ means that, for a limited amount of time, we’re beings in a mysterious universe, doing whatever we do, seeing, hearing, smelling, touching, tasting, until we die. Animals and plants seem perfectly content with this …