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
How To Compete With Amazon and Google
Like how the hell does anyone compete with like one of the greatest companies of all time on the thing that they’re experts at, right? And it turned out that just like picking the right avocado was too big of a challenge for like this trillion dollar comp…
Impostor Syndrome: What Is Your Worth?
Hi there. We’ve been looking for you. Yes, you. We know everything about you: how you’ve pretended to know things you have no idea about, how you’ve slept through years of your education, how you’ve received awards that you never deserved, and how you’ve …
Transitioning from counting to multiplying to find area | 3rd grade | Khan Academy
This square is one square unit. So, what is the area of rectangle A? The first thing we’re told is that each of these little squares equals one square unit, and then we’re asked to find the area of rectangle A. Here’s rectangle A, and area is the space th…
How to Tell if a Stock is Cheap Or Expensive (The Warren Buffett Way)
Hey guys, and welcome back to the channel! In this video, we are going to discuss how you can tell whether a stock is cheap or expensive. There are a lot of different ideas out there, from valuation multiples to technical indicators to cash flow analyses.…
Simulating samples from populations example 1 | Grade 8 (TX) | Khan Academy
We’re told a company manager wants to estimate the mean amount of time it takes the employees to travel to work. Here’s what the manager did: Survey the first 20 employees to arrive that day. Note the amount of time for each employee, add those times, a…
"Sell Your Stocks NOW" - Jeremy Grantham's Stock Market Warning
Us is not moderately overpriced; it is shockingly overpriced. As I said a year ago, I think they’ll do pretty well by selling. Billionaire investor Jeremy Grantham is warning that the stock market could collapse a whopping 60% from its current levels. If …