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
Calculating a confidence interval for the difference of proportions | AP Statistics | Khan Academy
Duncan is investigating if residents of a city support the construction of a new high school. He’s curious about the difference of opinion between residents in the north and south parts of the city. He obtained separate random samples of voters from each …
Gravitational potential energy at large distances | AP Physics 1 | Khan Academy
Let’s do a little bit of review of potential energy and especially gravitational potential energy because in this video we’re going to get a little bit more precise. So, let’s say that I have an object here. It has a mass of m, and I were to change its p…
Paycheck Squabble | Wicked Tuna
What do you think of a nice tuna check when we go in? Oh right, one out. All right. I think we were fishing every day, really. Hmm, so far in this trip, we’ve already lost two paychecks. And to top it off, I still haven’t been paid for the first three fi…
Challenges of naturalization | Citizenship | High school civics | Khan Academy
Now that we’ve talked about the naturalization process and the eligibility requirements for naturalization, let’s talk about how difficult it can be to become a naturalized citizen. Immigrant residents seeking naturalization face barriers throughout the p…
The Most Radioactive Places on Earth
[Music] So I’m not B H. It’s overloaded; radiation is frightening, at least certain types of it are. I mean, my Geiger counter doesn’t go off near my mobile phone or the Wi-Fi router or my microwave. That’s because a Geiger counter only measures ionizing …
Legendary Ships 100 Years Apart | National Geographic Documentary Films
This ship sank more than 100 years ago, and this is how its modern equivalent found the wreck. I’m historian Dan Snow, and I was privileged to be on board Aulus 2 on our mission to find Endurance’s wreck. Endurance was just 144 ft long; Aulus is three ti…