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Cliff Notes: WHAT DOES AMAZON'S STOCK SPLIT MEAN? · Earn Your Leisure

• 0:01
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  Speaker 2: Made up Instagram posts about this a few weeks ago,
• 0:33
  Speaker 2: and then spoke about this on Market Mondays when Google
• 0:37
  Speaker 2: announced is stock split and I made an Instagram post,
• 0:42
  Speaker 2: you know, one of those green screen things that everybody's doing.
• 0:47
  Speaker 3: Now. By the way, cybar so.
• 0:52
  Speaker 4: Gonna be diplomats, right, you have to talk with me
• 0:56
  Speaker 4: with the London.
• 0:58
  Speaker 5: Calling out name writer. We gotta be we gotta be diplomats.
• 1:01
  Speaker 5: Come on, We're not doing that.
• 1:05
  Speaker 2: But yeah, it was saying that you know, it could
• 1:08
  Speaker 2: lead to Amazon, a stocksplat from Amazon.
• 1:12
  Speaker 3: We talked about the market Monday's.
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  Speaker 6: And lo and behold, Yeah, Lo and behold.
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  Speaker 2: It's on record, so see you can see that it
• 1:18
  Speaker 2: was documented on Market Mondays, Lo and behold. Last week
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  Speaker 2: Amazon announced a twenty to one stock split.
• 1:24
  Speaker 7: The first thing I did was I think I called
• 1:26
  Speaker 7: you first, and then I called I called it Ian.
• 1:28
  Speaker 7: I'm like, yo, remember this man, when when when Bezel
• 1:30
  Speaker 7: stepped down, this was the opportunity we got a new
• 1:33
  Speaker 7: new CEO. This might be a new opportunity for him
• 1:36
  Speaker 7: to say, all right, this is a great chance for
• 1:38
  Speaker 7: us to get more investors inside the company.
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  Speaker 6: And lo and behold the day came. Yes, my stock
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  Speaker 6: of the year.
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  Speaker 2: So Amazon. All right, so Amazon, so let's talk about
• 1:48
  Speaker 2: everybody wants to probably know about this situation, which isn't
• 1:51
  Speaker 2: mean doesn't mean the stock is going to go out.
• 1:54
  Speaker 2: You know every time a stocksplat is the same conversation.
• 1:57
  Speaker 2: So Amazon. And it was interesting because when Google split,
• 2:00
  Speaker 2: it was Amazon was the last thing, last big tech
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  Speaker 2: company to have a four digit stock price, and you know,
• 2:08
  Speaker 2: it was rumors that, you know, that could be the
• 2:10
  Speaker 2: next stock to split. And they ain't even they an't
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  Speaker 2: even waste too much time. They a couple of weeks
• 2:14
  Speaker 2: later they stay announced that their stock split. So what
• 2:17
  Speaker 2: does this mean for Amazon?
• 2:19
  Speaker 6: It means exactly what we thought with the other ones.
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  Speaker 7: Right, Like, when I look at Amazon stock, if a
• 2:24
  Speaker 7: retail investor looks at Amazon stock and see that thirty
• 2:26
  Speaker 7: two hundred is not as appealing, right, That feels like
• 2:29
  Speaker 7: I can't afford it, or I'm going to have to
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  Speaker 7: get a fractional share. With the split twenty to one,
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  Speaker 7: which is a pretty large split. Now you're looking at
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  Speaker 7: maybe one hundred and thirty dollars a share, and more
• 2:40
  Speaker 7: enticing for a retail investor to get involved. It also
• 2:43
  Speaker 7: is important if you go back to the Josh Brown episode,
• 2:46
  Speaker 7: the last last time he was on market Monday, is
• 2:48
  Speaker 7: he talked about why these companies break down and split
• 2:51
  Speaker 7: and get to these numbers in the hundreds, right, so
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  Speaker 7: they could be included in the dal Jones. It was
• 2:55
  Speaker 7: an excellent explanation. If you haven't seen it, go check
• 2:57
  Speaker 7: that out. But that also is a factor in as well.
• 3:00
  Speaker 7: But I just want to make sure that everybody's clear
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  Speaker 7: that nothing changes fundamentally inside the company. It's just the
• 3:05
  Speaker 7: price has changed, right, And so I always explain it
• 3:08
  Speaker 7: as if somebody had a five dollar bill or five singles,
• 3:11
  Speaker 7: do you still have five dollars? Essentially you do, right,
• 3:14
  Speaker 7: it's just in a different form. And so when you
• 3:15
  Speaker 7: look at a stock, go from three thousand down to
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  Speaker 7: one hundred or two hundred. It's pretty much the same thing.
• 3:21
  Speaker 7: It's just that now more retail vestors can now piling
• 3:24
  Speaker 7: into the stock. They also bought back ten billion dollars
• 3:28
  Speaker 7: what was it, ten billion worth of stock. Yeah, So
• 3:31
  Speaker 7: like these type of moves when you start seeing things
• 3:34
  Speaker 7: like this happen, and it was like, Yo, this is
• 3:38
  Speaker 7: why I was saying this. I didn't even take this
• 3:40
  Speaker 7: into account when I was saying that, you know, Amazon's
• 3:41
  Speaker 7: gonna be my SoC of the year. I was looking
• 3:43
  Speaker 7: at all the fundamental things, but like, this is one
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  Speaker 7: of those things. Obviously, the market is in the downtren
• 3:49
  Speaker 7: right now is the nastak is in a downtrend. But
• 3:51
  Speaker 7: long term, this is why I'm like, all right, gotta
• 3:54
  Speaker 7: get Amazon. Gotta get Amazon.
• 3:56
  Speaker 6: On top of.
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  Speaker 7: Being the number one e commerce is going to be
• 3:59
  Speaker 7: the number one shipping company, passing Ups and FedEx in
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  Speaker 7: the next this year. There's just so many things that
• 4:04
  Speaker 7: I feel like Amazon is just like going to be
• 4:06
  Speaker 7: this incredible company that it already is and it's going
• 4:08
  Speaker 7: to keep building upon it.
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  Speaker 8: Yeah.
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  Speaker 5: Before the last fifteen months, every week somebody in stock
• 4:14
  Speaker 5: club is like, man, why do you keep Amazon as
• 4:16
  Speaker 5: a retirement pick. I'm like, just wait, put yes and chat.
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  Speaker 5: Some of y'all are killing me, man, are you sure?
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  Speaker 5: I'm like, give it time, Bezos. For those of you
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  Speaker 5: who don't know, he came from the hedgehot industry, so
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  Speaker 5: there's a calculated reason why he didn't wanted to split.
• 4:30
  Speaker 5: But with the new executive it gives him a great advantage.
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  Speaker 5: Like you said, it goes into the dal Jones. And
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  Speaker 5: then of course it's one of like it's in my
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  Speaker 5: top ten businesses as well. So like Apple, Microsoft, Google,
• 4:43
  Speaker 5: Saudi Aramico, Amazon, they're in that list of companies that
• 4:48
  Speaker 5: if I have to, like put my life on the line,
• 4:50
  Speaker 5: I would invest money with them.
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  Speaker 8: So continue to hold them for the long term. They'll
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  Speaker 8: be great.
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  Speaker 5: And then me and me, I'll see a question. We'll
• 4:56
  Speaker 5: talk about mydnea tonight on the stock club call. But yeah, Amazon,
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  Speaker 5: it's gonna be great for another ten or fifteen years.
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  Speaker 8: Easily hold on to it.
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  Speaker 3: When is the stocks Did they give a date?
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  Speaker 8: I don't know the date off the top of my head.
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  Speaker 6: Yeah, I'll get the question is gonna be when should
• 5:15
  Speaker 6: I buy Bight after.
• 5:17
  Speaker 5: We're gonna give a clean answer, Mike clicks us up.
• 5:20
  Speaker 5: If you haven't bought it yet and you can't afford
• 5:21
  Speaker 5: it in the two thousands, wait till after, and then
• 5:24
  Speaker 5: put it in one of your core holdings. That's been
• 5:28
  Speaker 5: like a little secret in stock Club. It's been in
• 5:31
  Speaker 5: the retirement picks forever. Amazon's one of the ones red Pan.
• 5:34
  Speaker 5: The police put red Pan in Chat so they can
• 5:36
  Speaker 5: see that I'm not lying to capping, even though this
• 5:37
  Speaker 5: crystal ball is going bright in the background.
• 5:41
  Speaker 4: Listen, if we all called it unanimously.
• 5:45
  Speaker 3: I mean, yeah, Amazon can't can't go wrong with Amazon Earners.
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  Speaker 3: Sponsored by the United States Department of Homeland Security. Good good,
• 8:41
  Speaker 3: good move to split his stock.
• 8:44
  Speaker 2: I feel like that's only going to, you know, drive
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  Speaker 2: a lot more retail money into it, and just by
• 8:49
  Speaker 2: the law of numbers, right, It's like a stock is
• 8:52
  Speaker 2: two thousand dollars on three thousand dollars, like you know,
• 8:54
  Speaker 2: for it to get to six thousand dollars a big
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  Speaker 2: increase of only four hundred percent with you know, something
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  Speaker 2: is one hundred and twenty dollars, you know goes to
• 9:01
  Speaker 2: two hundred and forty dollars. That's a lot more feasible.
• 9:04
  Speaker 2: Apple has split a variety of different times throughout the
• 9:07
  Speaker 2: course of their history. Google just split, Testless split last year.
• 9:13
  Speaker 2: Amazon is about to split some video. Yeah, it just
• 9:18
  Speaker 2: makes sense run.
• 9:20
  Speaker 5: It out on Disney too, because now me but because
• 9:23
  Speaker 5: now when you have to pick between the two, since
• 9:26
  Speaker 5: the price is cheaper, now you're going to have to say,
• 9:28
  Speaker 5: it's like getting Lebron at five million a year. I
• 9:30
  Speaker 5: may like Pat Beverley at five if I can get Lebron. Though,
• 9:33
  Speaker 5: now you have to make some tough decisions about what
• 9:35
  Speaker 5: I'm what am I going to have in my portfolio?
• 9:37
  Speaker 5: If I'm going.
• 9:38
  Speaker 8: Based on price that I have available, you have a
• 9:40
  Speaker 8: superstar available for pretty much a rookie contract. Your portfolio
• 9:46
  Speaker 8: hard to turn down.
• 9:47
  Speaker 7: They're doing something interesting with their streaming service right now.
• 9:50
  Speaker 7: So Disney Plus and they kind of announced it like sublimately,
• 9:54
  Speaker 7: but they're going to be having different tiers now. So
• 9:56
  Speaker 7: like if you have Disney Plus, you know, you just
• 9:57
  Speaker 7: played that one tier or the tier that gives you
• 9:59
  Speaker 7: ESPN and they all these other things. But they're gonna
• 10:01
  Speaker 7: have another tier where you can have advertisement or non advertisement.
• 10:04
  Speaker 7: So that's just another revenue stream on top of what
• 10:07
  Speaker 7: they're doing. Streaming service is doing incredible, it's almost I mean,
• 10:11
  Speaker 7: it's gonna catch Netflix within the next three to five years.
• 10:13
  Speaker 7: But having that ad service in it now you're talking
• 10:16
  Speaker 7: about more revenue on top of the parks opening.
• 10:19
  Speaker 6: I just saw that Disney Paris. Disney Paris reopened.
• 10:23
  Speaker 7: So it goes my good company Disney again. The stock
• 10:26
  Speaker 7: split for Amazon though May twenty seventh, it goes in
• 10:28
  Speaker 7: effect May twenty seventh, so that's when it'll split.
• 10:32
  Speaker 2: There you have it, Ladies and gentlemen, China stock stuff
• 10:36
  Speaker 2: is worst sell offs in two thousand and eight. It's
• 10:39
  Speaker 2: now a good time to buy.
• 10:41
  Speaker 3: China China.
• 10:42
  Speaker 7: I mean, I think we can't talk about whether to
• 10:45
  Speaker 7: buy or not until we understand why it hit its
• 10:49
  Speaker 7: lowest points in two thousand and eight. So obviously, and
• 10:52
  Speaker 7: if anyone wasn't paying attention COVID. COVID is back in China,
• 10:58
  Speaker 7: and so they closed down factories. So they closed down factories,
• 11:02
  Speaker 7: which led to the cell of But so I mean,
• 11:05
  Speaker 7: obviously the way they handled COVID in the early stages
• 11:07
  Speaker 7: was a lot different than we did, and so they
• 11:10
  Speaker 7: weren't they didn't have the type of outbreak. But there
• 11:13
  Speaker 7: are certain cities right now in China that are noticing outbreaks.
• 11:17
  Speaker 3: And so what's happening is the cities.
• 11:20
  Speaker 6: Well Shen'sen Shen's Hand, which.
• 11:23
  Speaker 7: Is was is key for a lot of technology companies,
• 11:25
  Speaker 7: including Apple. I think one fifth of the production happens
• 11:29
  Speaker 7: in the city. And so since there's an outbreak, they've
• 11:32
  Speaker 7: closed down factories for six days.
• 11:34
  Speaker 6: That's the minimum.
• 11:35
  Speaker 7: They got to close them for six days and anything.
• 11:37
  Speaker 7: If they don't see numbers changing, then they extended. And
• 11:40
  Speaker 7: so you shut down production for six days, shut down
• 11:42
  Speaker 7: a lot of business for a lot of companies. And
• 11:45
  Speaker 7: so you know, the the market got hit, Shansen got hit.
• 11:48
  Speaker 7: So you're looking at a bunch of sectors and including
• 11:52
  Speaker 7: like gambling and travel companies as well.
• 11:55
  Speaker 6: Right, so it's interesting.
• 11:58
  Speaker 7: Like we're looking at it here in New York, Like
• 12:00
  Speaker 7: I know, since we've been back in over the past
• 12:02
  Speaker 7: week or so, it's like, all right, well, you know,
• 12:03
  Speaker 7: it feels like it's a little bit it's kind of open.
• 12:05
  Speaker 7: And so they hear COVID and hear China again. I'm like, nah,
• 12:09
  Speaker 7: not again.
• 12:10
  Speaker 6: We can't.
• 12:11
  Speaker 5: Don't do this, I mean, and once again, we are
• 12:14
  Speaker 5: one of the few countries that less the companies run
• 12:18
  Speaker 5: our country. And also too, when you guys are investing
• 12:21
  Speaker 5: in Chinese companies, even in publicly traded markets, you need
• 12:25
  Speaker 5: to make sure that you're actually owning shares of that
• 12:27
  Speaker 5: company and not offshore accounts.
• 12:30
  Speaker 6: That is a fact.
• 12:32
  Speaker 3: Now.
• 12:33
  Speaker 7: That is something like when the fine print when you
• 12:35
  Speaker 7: try to buy shares of these companies, like if you
• 12:38
  Speaker 7: try to buy shares of Ali Baba, look at the
• 12:40
  Speaker 7: fine print and what you're actually getting.
• 12:42
  Speaker 6: I don't want to bring up the looking but I will.
• 12:45
  Speaker 6: I will.
• 12:46
  Speaker 7: When I did look at Coffee, I looked at the
• 12:49
  Speaker 7: fine line and I looked on and I'm like, wait,
• 12:51
  Speaker 7: I'm actually not buying shares of the company.
• 12:53
  Speaker 6: I'm buying like well.
• 12:54
  Speaker 7: And so like that like doing that type of homework
• 12:56
  Speaker 7: we're doing every let me do all right, well, Okay,
• 13:00
  Speaker 7: here comes the rug.
• 13:02
  Speaker 4: Do you or do your right rest in peace?
• 13:05
  Speaker 8: Pop smoke.
• 13:05
  Speaker 4: Listen when we say do your own research, go look.
• 13:08
  Speaker 5: This isn't a conspiracy theory either, like go look and
• 13:12
  Speaker 5: see when you actually buy what you're getting, you have
• 13:16
  Speaker 5: to be very careful. And then the way that government
• 13:19
  Speaker 5: runs their country is how most countries are ran, so
• 13:23
  Speaker 5: you have to be careful. And then when Jack Majus,
• 13:25
  Speaker 5: you know he went to his meditation retreat for a
• 13:27
  Speaker 5: few months, that was indicative of what's to come.
• 13:30
  Speaker 4: Now.
• 13:30
  Speaker 5: If Ali Baba those twenty percent underneath it is all
• 13:33
  Speaker 5: time low, I would definitely take a look at it.
• 13:38
  Speaker 5: My graduates from my school being forced bad drop bag drop,
• 13:44
  Speaker 5: Mike drop bad drop drop.
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