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
Comparing animal and plant cells | Cells and organisms | Middle school biology | Khan Academy
So, let’s play a game of spot the difference. Now, if you were asked to spot the difference between these two pictures, you’d probably laugh and say that’s too easy because it’s obvious that this picture of a lion on the left is nowhere close to looking …
Specific heat capacity | Khan Academy
Pop Quiz! We have two pots of water at the same temperature, say room temperature of about 30° C, as we want to increase this temperature to, say, 40° C. The question is, which of the two will take more heat energy? What do you think? Well, from our dail…
How To Get Rich According To Tim Ferriss
There are a million ways to make a million dollars, and this is how Tim Ferriss did it. Tim Ferriss is someone we routinely follow because he’s always doing something interesting or has something smart to say. Ferriss is a successful author, entrepreneur,…
The Ultimate Conspiracy Debunker
The Internet is like a breeding ground for conspiracy theories. While some are just stupid and funny, others promote ignorance and an unhealthy distrust. So we went to the Kurzgesagt lab and developed a foolproof system to destroy not all but a lot of con…
Peter Lynch: How to Invest Small Amounts of Money
I think the public can do extremely well in the stock market on their own. I think the fact that institutions dominate the market today is a positive for small investors. These institutions push stocks on usual lows; they push them on usual highs. For som…
Happiness Without Material Comfort Is Playing on Hard Mode
Even though you can certainly achieve happiness and mental health without financial health, the truth is in modern society, most of us understand that financial wealth can give us freedom. It can give us time. It can give us peace. You’re not gonna buy yo…