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
Race to Get on the Water | Wicked Tuna: Outer Banks
Yo, really? Oh boy, thanks for the info. Oh man, I don’t know if I wanted to get that phone call. What do you think, Reba? I just heard from another fishing pal of mine that the friends he got out today and they’re hooked up. We just traveled a long way t…
Big Bend's New Bear Cubs | America's National Parks | National Geographic
NARRATOR: Nearly 6,000 feet up in the mountains, another mom has a huge challenge. A female black bear has spent the winter in a high mountain cave. She needs to teach her cubs to survive in the park. With little to no food or water for months, the stakes…
Types of health insurance plans | Insurance | Financial Literacy | Khan Academy
So there are three ways that you might be able to get yourself health insurance. The first way is that you just get it directly, and that would be an individual plan. You pay the premium, you get the insurance. The second way is, many employers will prov…
What is Acid Rain? | National Geographic
What is acid rain? Acid rain is any form of precipitation with high levels of nitric and sulfuric acids. It can occur in the form of snow, fog, and even dry materials that settle to earth. Most acid rain is caused by human activities. When people burn fo…
Worked example: sequence explicit formula | Series | AP Calculus BC | Khan Academy
If a_sub_n is equal to (n^2 - 10) / (n + 1), determine a_sub_4 + a_sub_9. Well, let’s just think about each of these independently. a_sub_4, let me write it this way: a the fourth term. So a_sub_4, so our n, our lowercase n, is going to be four. It’s go…
Biases in algorithms | Intro to CS - Python | Khan Academy
Algorithms increasingly control many areas of our everyday lives, from loan applications to dating apps to hospital waiting lists. As responsible consumers and now creators of algorithms, we need to think critically about how the success of an algorithm g…