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
Safari Live - Day 7 | National Geographic
Well, the clouds have broken apart. We have Sapphire Skies and a golden African sun. The siesta is over. This is Safari Live, ready and standing by. 5, 4, 3, 2, 1, you are live! You are [Music] live! Well, good afternoon, everybody! And a warm welcome fr…
Homeroom With Sal - Is College Right for Me? (Part 2)
All right, well, I think we are back. So we had a little bit of technical difficulties as sometimes might happen on the internet. But Ernest, you were going through your explanation, and you were talking about how at Morehouse you were able to work with t…
Erin McCoy and Kevin O'Leary discuss cottages and mortgages
[Music] I am here with my great friend Kevin Oir, and we are in the beautiful Mokes on Lake Joseph. We’re going for a little boat cruise, and we’re going to talk about real estate, especially cottage real estate, and also all the things that Kevin’s up to…
The Mobile Home Economics | Explorer
[music playing] Frank Rolfe? Yes. Billy Mintz. Hi, Billy. How are you? BILLY MINTZ (VOICEOVER): Frank Rolfe’s company is the fifth largest owner of mobile home parks in the United States. BILLY MINTZ: Beautiful place. FRANK ROLFE: Thank you very…
MACAWS in SlowMotion! Rainforest Research! Smarter Every Day 60
Hey, it’s me, Dtin. Welcome back to Smarter Every Day! So let’s pretend for a second that you’re a macaw, and you live in the Amazon rainforest. Life is pretty good; you have all the fruit you want. But there’s one problem: you don’t get all the nutrient…
Brass Trunk Corner | Diggers
Kg and I are in Montana at decision point with our archaeologist marked, and we’re on the hunt for Lewis and Clark nectar. In 1803, President Thomas Jefferson hand-selected Meriwether Lewis to lead a top-secret army Expedition into the lands Northwest of …