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
The Jacobian matrix
In the last video, we were looking at this particular function. It’s a very non-linear function, and we were picturing it as a transformation that takes every point (x, y) in space to the point (x + sin(y), y + sin(x)). Moreover, we zoomed in on a specif…
How to Increase Willpower and Self-Control
The studio isn’t perfect right now, and it gets so hot in here during the day. I tried to shoot this video two times, and I got way too sweaty. So now, I’m filming it at night, but I’m still doing [Music]. Also, there are like moths and flies in here ‘ca…
Colbert's Life in the Swamp | Live Free or Die
[Music] [Music] Every day in the woods is just a constant challenge. It’s urgency after urgency, project after project. Got an otter! It’s a river otter. This is one of my most valuable pelts; it brings a top price, and, uh, not many people do, but I try…
Filming Extreme Weather (Behind the Scenes) | National Geographic
Really nice right here. Tom, number one just went off. She wants to go, something doesn’t she? This could get exciting. A faction—I’m Sean Casey, a documentary filmmaker. We are currently in Skagway, Alaska, and we’re about to motor 200 miles to the midd…
First Native Congresswoman Elected in America | National Geographic
[Music] To win this election, I think it would mean the world to across the country. In the Congress, there have been roughly 12,000 people elected to 1789, and of that number, about 300 Native Americans and yet never a woman. Why you and why now? Why me…
360° Giant Sequoias on a Changing Planet – Part 2 | National Geographic
[Music] One of the things that’s so interesting about the giant sequoia trees is how long they can live: a thousand, two thousand, three thousand years. Although they are incredibly resilient, we’ve managed to change our climate so much. We just don’t rea…