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
Recruiting Women for Office: Why Is it Still Necessary? | 100 Years After Women's Suffrage
Hello everyone! Thank you so much for joining us today. My name is Mallory Benedict. I’m a photo editor at National Geographic, and I worked on the suffrage story tied to the anniversary of the centennial anniversary of the suffrage movement that can be s…
He Named Me Malala | Trailer | National Geographic
You named her after a girl who spoke out and was killed; almost as if you said she’ll be different. You’re right. Tonight, Malala remains in intensive care. She was shot in the head for daring to suggest girls should go to school. I’m still 17. I’m stil…
The van der Waals equation | Khan Academy
We have so far spent many videos talking about the ideal gas law: that pressure times volume is equal to the number of moles times the ideal gas constant times temperature measured in Kelvin. What we’re going to do in this video is attempt to modify the i…
What is the Shortest Poem?
Hey, Vsauce. Michael here. I am in Green Bank, West Virginia. Pocahontas County. And my favorite word is … I learned it from Big Bird, and it’s not so much a word as the alphabet, if you try to pronounce it like a word. It’s a neat trick, almost poetic. B…
Intermolecular forces and vapor pressure | Intermolecular forces | AP Chemistry | Khan Academy
So we have four different molecules here, and what I want you to think about is if you had a pure sample of each, which of those pure samples would have the highest boiling point, second highest, third highest, and fourth highest? Pause this video and try…
How Engines Work - (See Through Engine in Slow Motion) - Smarter Every Day 166
Hey, it’s me Destin. Welcome back to Smarter Every Day. You’ve probably cranked a car engine thousands of times in your life, right? You’re familiar with that roar as the engine comes to life? Have you ever thought about what’s going on inside the engine?…