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
Elizabeth Warren: The Heart of the Two Income Trap
Most families saw and believed that if he’s at work and bringing in a certain amount of money and we can add my salary on top of things, that’s how it is; we can afford that house in the suburbs. That’s how it is that we can keep health insurance for her …
Checkers Is the Heart and Soul of This Neighborhood | Short Film Showcase
[Music] Not only do you enjoy the camaraderie of it, but you make longtime friendships. We know the family, we know their friends, we know what they do and how they travel in life. When people are sick, we go by and check on them. When people go to jail, …
Why Robots That Bend Are Better
These are soft robots. Their structural components are built, not out of metal or wood, but flexible materials like plastic tubing. But how do they work? And why would you want a soft robot in the first place? This video was sponsored by KiwiCo. Check out…
These Rare Giraffes Were Killed Just for Their Tails (Exclusive Video) | National Geographic
[Music] Seeing these giraffes from the air was really exciting. Seeing them anywhere is exciting, ‘cause there’s so few of them left. But this was my first shot, and there’s a giraffe standing in this small clearing by a small tree. And then the next thin…
YC Tech Talks: Climate Tech with Charge Robotics (S21), Wright Electric (W17) and Impossible Mining
[Music] I’m Paige Amora. I work at Y Combinator. I’m on our work at a startup team, so we’re the team that helps our portfolio companies hire. For this event, we’ll do three tech talks. These will just be about a technical topic that the founders find int…
Heat capacity at constant volume and pressure | Physics | Khan Academy
Imagine you had a monatomic ideal gas in the cylinder here, and there was this tightly fitted piston above it that prevented any gas from getting out. Well, we know that the total internal energy for a monatomic ideal gas is just three-halves P times V or…