If you’re interested in joining a community of fellow investors looking to learn and find exceptional companies, we have an exclusive community on Discord. You can sign up at www.unrivaledinvesting.com, click JOIN THE JOURNEY. I also call out potential multi-baggers and share my own personal portfolio for those interested.
Splits matter 1) Now average folks can sell covered calls against their position and generate some income. Say you're conservative and generate 2% from those call premiums annually and you reinvest the proceeds back into Amazon, overtime that compounds quickly 2) Average folks can now afford to buy down side protection. How do you buy Puts against 5 shares for example. After a 20:1 split, you can and that reduces risk 3) Amazon warehouse employees are compensated with shares or options. Hard to boost moral handing out 0.25 share a quarter
to add 4) it'll now be listed in the DOW and respective ETFs. 5) Retail investors won't be barred from investing in Amazon because their platforms don't allow fractional shares.
Always important to keep in mind a stock split does nothing for the value, but will certainly attract more investors who think they are getting a steal so Amazon just remains a HOLD for me..
I think the current price is fair. I think AMZN is an amazing business. I think the amazing business will grow from here. I was initially cautious about the split and, with the buyback, it held me back from buying. I'm starting to reconsider, though.
$10bn repurchase is peanuts relative to market cap. All it does is hide profits a bit while promoting confidence in the stock price to float the price boat to keep employees engaged
What do you think about the fact wages have gone up so even though people are seeing increase in food and gas they feel like they have more money to spend and Amazon is cheaper then most retail stores and have the conveyance of not having to spend gas to go pick it up yourself?
"Perception is reality", and stock split is a clear example of that. I agree with you: SS shouldn't change anything especially when we can buy stock fractionally but we know it does. SS increases stock fluidity, this is one material consequence. I don't own AMZN stock because don't see it as multi bagger, though stable and profitable. TSLA is a better proposition, genomics for the key segment for exceptional long term growth.
Again, the most professional and on time youtube channel / host on investing. Thanks for sharing your thoughts and keeping up the great work! Interesting indeed
Amazon is a Apex Spawner and are very great capital allocators...love the business of amazon expecilly AWS while other segments are very low margin businesses they have this thing called huge volume growths which is the key driver .. even at $1.5T I feel its Cheap and with 20:1 split its gonna be easy for me to buy Amazon... Can comfortable hold this for decades to come ...hey amazon here i come on june 6th
If they do a buyback on a much larger scale I’d be worried too. It would show that they are near the end of the business life cycle and have no better use of that excess cash. Growth story ends which also means multiple needs to come down a lot more. Glad that’s not the case
Thanks Daniel for that very helpful look at Amazon, that's why I subscribe to your channel! Speaking of macro headwinds, there's another potentially devastating headwind for Amazon: the growing anti-trust legislation attempts by Senator Amy Klobuchar, Representative Mary Gay Scanlon, Congresswoman Pramila Jayapal, to name a few, who are aggressively trying to break up Amazon, Google, Apple, Microsoft, but they're starting small with regulations against Amazon favoring the sale of certain products that favor Amazon and Apple removing their own apps from their app store - and these anti-trust people are making serious progress. Don't you think this could be as large a shift to investing as your very well worded video on "adapting oneself" to the new order? It seems that Russia/Ukraine and Fed rate hikes are taking the spotlight off what may be the largest investor wealth destroyer of all, as massive forces are at work to dismantle big tech. Have you thought about this?
There's no doubt that Amazon is a great company but growth is slowing especially in their retail operation. They will have to report a massive loss next quarter from their investment in Rivian. Keep this in mind going forward...
$2700 was a great price to get in and i bought that dip. There is a lot of amazon infrastructure not being priced into their 1.5T market cap. This is tech bluechip heaven to hold for 3-5 years. Better than 98% of the junk floating out there in the market or buying indexes. The market strrategy for 2022 is really simple, its tech bluechips and crypto layer 1s. That's it. Everything else is either gambling or the gains won't keep up with inflation.
Amazon is sending a signal that it will focus more on earning, instead of rev expanding with heavy reinvestment over the past years. I think this is something WST would like to see in a late economy cycle.
All this pizza talk is making me hungry....the split will increase volume. Also, not everyone wants to spend 3k every time they buy Amazon when it's on sale.
![Blox Fruits Dragon Rework Update [Full Stream]](http://i.ytimg.com/vi/EqDAp8udhm0/mqdefault.jpg)
If you’re interested in joining a community of fellow investors looking to learn and find exceptional companies, we have an exclusive community on Discord. You can sign up at www.unrivaledinvesting.com, click JOIN THE JOURNEY. I also call out potential multi-baggers and share my own personal portfolio for those interested.
Splits matter
1) Now average folks can sell covered calls against their position and generate some income. Say you're conservative and generate 2% from those call premiums annually and you reinvest the proceeds back into Amazon, overtime that compounds quickly
2) Average folks can now afford to buy down side protection. How do you buy Puts against 5 shares for example. After a 20:1 split, you can and that reduces risk
3) Amazon warehouse employees are compensated with shares or options. Hard to boost moral handing out 0.25 share a quarter
to add 4) it'll now be listed in the DOW and respective ETFs. 5) Retail investors won't be barred from investing in Amazon because their platforms don't allow fractional shares.
Always important to keep in mind a stock split does nothing for the value, but will certainly attract more investors who think they are getting a steal so Amazon just remains a HOLD for me..
7:31 why you should buy AMZN
Thx 😊
I think the current price is fair. I think AMZN is an amazing business. I think the amazing business will grow from here. I was initially cautious about the split and, with the buyback, it held me back from buying. I'm starting to reconsider, though.
Do you want to invest before or after the split?
$10bn repurchase is peanuts relative to market cap. All it does is hide profits a bit while promoting confidence in the stock price to float the price boat to keep employees engaged
What do you think about the fact wages have gone up so even though people are seeing increase in food and gas they feel like they have more money to spend and Amazon is cheaper then most retail stores and have the conveyance of not having to spend gas to go pick it up yourself?
"Perception is reality", and stock split is a clear example of that.
I agree with you: SS shouldn't change anything especially when we can buy stock fractionally but we know it does. SS increases stock fluidity, this is one material consequence.
I don't own AMZN stock because don't see it as multi bagger, though stable and profitable. TSLA is a better proposition, genomics for the key segment for exceptional long term growth.
Again, the most professional and on time youtube channel / host on investing. Thanks for sharing your thoughts and keeping up the great work! Interesting indeed
Amazon is a Apex Spawner and are very great capital allocators...love the business of amazon expecilly AWS while other segments are very low margin businesses they have this thing called huge volume growths which is the key driver ..
even at $1.5T I feel its Cheap and with 20:1 split its gonna be easy for me to buy Amazon...
Can comfortable hold this for decades to come ...hey amazon here i come on june 6th
You buy?
Thanks again for your perspective.
Thank you!
Looking forward to the options play for AMZN.
I own 0.1share of Amazon stock. Am I going to have 2 shares of it after split?
If they do a buyback on a much larger scale I’d be worried too. It would show that they are near the end of the business life cycle and have no better use of that excess cash. Growth story ends which also means multiple needs to come down a lot more. Glad that’s not the case
Statistically large buyback when stocks are exspensive hurt returns.
In This instance despite the basecase I won't invest but I believe in it.
Yeah I'm going to be doubling my exposure over the next few months. 3-4 to 6-8
"...up to..." That old sales chestnut eh?
who is 'Management"?
Thanks Daniel for that very helpful look at Amazon, that's why I subscribe to your channel! Speaking of macro headwinds, there's another potentially devastating headwind for Amazon: the growing anti-trust legislation attempts by Senator Amy Klobuchar, Representative Mary Gay Scanlon, Congresswoman Pramila Jayapal, to name a few, who are aggressively trying to break up Amazon, Google, Apple, Microsoft, but they're starting small with regulations against Amazon favoring the sale of certain products that favor Amazon and Apple removing their own apps from their app store - and these anti-trust people are making serious progress. Don't you think this could be as large a shift to investing as your very well worded video on "adapting oneself" to the new order? It seems that Russia/Ukraine and Fed rate hikes are taking the spotlight off what may be the largest investor wealth destroyer of all, as massive forces are at work to dismantle big tech. Have you thought about this?
There's no doubt that Amazon is a great company but growth is slowing especially in their retail operation. They will have to report a massive loss next quarter from their investment in Rivian. Keep this in mind going forward...
Great point. I would wait till that report on Rivian comes out to see how it affects Amazon
The only thing a split does is allow people to trade options.
Allow broke people*
@@amandasmith1920 thank you captain obvious.
@@davidkoba sensitive?
@@amandasmith1920 yup sensitive to stupidity.
$2700 was a great price to get in and i bought that dip. There is a lot of amazon infrastructure not being priced into their 1.5T market cap. This is tech bluechip heaven to hold for 3-5 years. Better than 98% of the junk floating out there in the market or buying indexes. The market strrategy for 2022 is really simple, its tech bluechips and crypto layer 1s. That's it. Everything else is either gambling or the gains won't keep up with inflation.
Lol crypto is gambling to its core
Amazon is sending a signal that it will focus more on earning, instead of rev expanding with heavy reinvestment over the past years. I think this is something WST would like to see in a late economy cycle.
Charlie Munger is going to roll over in his grave laughing in 2035 when Alibaba goes 10x and Amazon goes nowhere
How are u getting younger with every video ?
All this pizza talk is making me hungry....the split will increase volume. Also, not everyone wants to spend 3k every time they buy Amazon when it's on sale.
Fractional shares…
@@Willyama The issue with fractional shares, they don't have the same ownership privelages, no dividends and major trading limitations.
@@peterplus2001 gotcha, I’ve never had any unless it was dividend reinvested ones
Fractional shares DO pay fractional dividends.
@@theranchhand I double checked, yes, they do, but, there was some contractual agreement in the terms that was different.
Thanks again for your perspective.
Thank you for the kind feedback!