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
Mr. Freeman, part 63
All right, hot-shots, no small talk or bullshit today! Just cold reality and stark, naked truth. Don’t wanna know, or friggin’ scared? Door’s there! Whattaya waiting for? Thanks for sharing, get the hell out! I’ve had it with your snobby fed-up attitude a…
When to buy a great business
Well, I won’t comment on the three companies that you’ve named, but in general terms, unless you find the prices of a great company really offensive, if you feel you’ve identified it… By definition, a great company is one that’s going to remain great for …
Safari Live - Day 230 | National Geographic
Which is live coverage of an African safari and may include animal kills and carcasses. Viewer discretion is advised. This is why the inclement ride is such a firm favorite. [Music] He just looks ready for a fight; this is still her territory. Good afte…
Writing arithmetic series in sigma notation
What I want to do in this video is get some practice writing Series in Sigma notation, and I have a series in front of us right over here. We have seven plus nine plus eleven, and we keep on adding all the way up to four hundred five. So first, let’s jus…
Eric Migicovsky at Startup School SV 2014
Hi guys, um, it’s an honor to be here. I really appreciate you guys taking time out of your day to come listen to me. Um, I know that many of you may have heard about us when we launched on Kickstarter about two years ago. Um, I’m here to tell you a littl…
How To Destroy The Universe
The universe is going to die one day. But how? Well, it turns out, our cosmic fate will be decided by a fight between two titans. The Two Warriors Deciding the Fate of the Universe Our universe was born 14 billion years ago in the Big Bang and has been …