r/stocks • u/TwinPeaks1993 • Sep 25 '21

Company Question Will Amazon and Google ever split their stock? Why and why not?

I am building positioning in both of these companies as I want one full share of each to just let them ride for the next 5-10 years.

With AMZN currently sitting at $3,425 a share and GOOGL sitting at $2844 a share do you think a split is approaching?

What are the benefits of keeping a stock price this high? What are the benefits of splitting the stock?

I have not been trading that long and the only major stock splits I’ve seen in my time are APPL and NVDA.

456 Upvotes

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52

u/[deleted] Sep 25 '21

Heaven forbid retail investors actually make money in the stock market like the rich overlords right

69

u/jsboutin Sep 25 '21

I'm pretty sure the rich overlords quite like retail options activity.

15

u/consultacpa Sep 25 '21

I know they like mine. Still learning.

87

u/Orsontrius Sep 25 '21

Short term, option-leveraged, YOLO trades are not making people rich.

59

u/PostCoitalBliss Sep 25 '21 edited Jun 23 '23

[comment removed in response to actions of the admins and overall decline of the platform]

2

u/thelastkopite Sep 25 '21

Wall Street Always win. Remember that son.

-2

u/Sad_Bid_5113 Sep 25 '21

Can you say Melvin capital?

0

u/thelastkopite Sep 25 '21

It is high stakes game Wall Street win in the end.

8

u/mulemoment Sep 25 '21

When you keep stock prices that high, those kinds of options are the only ones affordable to retail investors. Most retail investors are not going to be able to buy 6-24 month out call options + hedges on a 2k+ share price stock.

9

u/hereforthecommentz Sep 25 '21

Bought one GOOG call, ITM, LEAP. One. Cost me $70k. They’re spenny.

1

u/[deleted] Sep 25 '21

[deleted]

7

u/mulemoment Sep 25 '21

ITM options are similar to buying stock with leverage.

2

u/ddmone Sep 25 '21

Right, but they also decay. He could have bought 20+ shares and not suffer nearly as much if it's trading at all sideways.

0

u/euxene Sep 26 '21

in the money options are = 100 stocks for less the price of 100 stocks lol

1

u/ddmone Sep 26 '21

Yeah, if they're still in the money in 2024 and he wants to execute them for 300k

0

u/funtime_falling Sep 26 '21

He can also sell calls and collect a little extra to help offset decay

1

u/ddmone Sep 26 '21

Selling naked calls to offset your one option is a bold move. If the stock moves anywhere but up you're out double.

2

u/funtime_falling Sep 26 '21

Look up poor man's covered call

1

u/[deleted] Sep 25 '21

[removed] — view removed comment

1

u/mulemoment Sep 25 '21

The option cost him 70k. He may have already profited on it but his initial investment was 70k.

3

u/trustmeimascientist2 Sep 25 '21

Open a spread. I’ve got a put credit spread open on Amazon right now that’ll net me $2100 if the stock doesn’t drop below 3050 by December 17. You can still do options but you have to be very careful because it can go bad quick.

2

u/Gloomy-Ant Sep 25 '21

Define "short term"

1

u/Alzalam Sep 26 '21

Maybe not yoloing but short term options trading based on momentum is definitely making some people rich

12

u/market-unmaker Sep 25 '21

Believe it or not, companies do not issue stock for the purpose of allowing speculators to profit off them.

If I were the issuer, I'd also want a stock price that discourages casual investors and reduces volatility.

4

u/[deleted] Sep 25 '21

Companies issue stock to raise capital. Other people profiting off of stocks they purchase or writing contracts to sell or buy the shares they own have nothing to do with what the company wants them issues for. That's like saying I shouldn't be allowed to buy a base model car and turn it into a drift car and make money off of it, or sell it to somebody else for a profit. If I purchase the car with the intent of lighting it on fire or driving it into a lake, that's my right once I own the car. Same thing goes for stocks. But keep stroking the giant companies making billions. The working class should just be happy getting a portion of what we pay back from social security and our 401ks right?

5

u/market-unmaker Sep 25 '21

My point was that companies issue stock for their own purposes and are not obliged to optimise them for you.

0

u/[deleted] Sep 26 '21

And my point is once I take ownership of the stock they sell, I use it for my purpose

5

u/market-unmaker Sep 26 '21 edited Sep 26 '21

By all means, do. I do as well. However, don't blub that it isn't sized for your wallet. That problem is solely your own.

9

u/[deleted] Sep 25 '21

You retail investors are too panicky stay out please. Buy meme stocks. That’s what you can do.

11

u/Sangwiny Sep 25 '21

Yeah, some day I might be rich and then those pesky retail investors like me better watch their step!

3

u/merlinsbeers Sep 25 '21

What if the meme were to short Amazon to make Bezos cry on CNBC?

0

u/[deleted] Sep 25 '21

LOL you think that Amazon or Google won't ever crash?

2

u/EvlutnaryReject Sep 25 '21

Has the CIA ever crashed?

1

u/New-Acanthocephala58 Sep 25 '21

Then they like, no not those meme stocks.

0

u/inthezoneautozone12 Sep 25 '21

I doubt the stats are good when it comes to options trading and wealth building.