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
Life After Death
We’ve had to talk about death a lot in the past few years. Whether as referring to the number of casualties in a war or as the number of victims of a virus, although we primarily discuss it within the context of our society, we understandably still keep d…
Domain and range from graphs of quadratic and exponential functions | Khan Academy
So what we want to do in this video is try to figure out the domain and ranges of G of X that’s depicted right over here and H of X that’s depicted over here. So pause this video and see if you can figure out the domain and range of each of these function…
15 Reasons Why Getting Rich is Easy
The world gets a new millionaire every 21 seconds and one new billionaire every single day. By the end of this video, you’ll understand why so many people are becoming rich and learn how to do it yourself. Here’s 15 reasons why getting rich is super easy.…
Sources of genetic variation | Inheritance and variation | High school biology | Khan Academy
In this video, we’re going to talk about sources of genetic variation, which is key for evolution and natural selection to happen. Just as a little bit of a primer: natural selection, you can have a bunch of different organisms with different genetics, di…
What Happens to Lasers Underwater? (Total internal reflection) - Smarter Every Day 219
Hey, it’s me, Destin. Welcome back to Smarter Every Day. If you can’t tell, I am on a kayak here. And we have a lot of the kayak. I guess it was a week ago I uploaded a video to the second channel. And we were trying to fish, right Trent? [Trent] Yeah. Oh…
Female Founders Conference - Mountain View
Right now that you all know each other, I’d like to introduce our first speaker. Okay, I would like to welcome our first speaker, Phaedra Ellis Lumpkins, who’s the founder and CEO of Promise. Now, Promise went through the winter 2018 batch of YC and is wo…