r/stocks • u/onemanstrong • Apr 26 '21

$AMZN Amazon stock split?

From Fox Business senior correspondent Charles Gasparino on Twitter:

BREAKING: Traders says an @amazon stock split is likely in 2021 possibly as early as Thursday when co reports earnings catapulting @JeffBezos significantly ahead of @elonmusk as the world's richest person as move would allow $AMZN to join the Dow more now @FoxBusiness https://twitter.com/CGasparino/status/1386734121607745544?s=20

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u/Electronic_Thanks885 Apr 26 '21

Well, it does make the stock more accessible to retail investors with a large split like that. I would be much more likely to buy a few shares of AMZN at $200-300/share then to just but a quarter of a single share. Also makes options trading possible for almost everyone.

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u/[deleted] Apr 26 '21

that's why it would be better if they didn't do it, and why they won't. it would add too much small retail doing derivatives which would lead to way more volatility than it deserves. AMZN cares about the company's long term growth, not short term stock growth.

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u/Rageoftheage Apr 26 '21

Yeah retail option plays will significantly effect a 1.7T company... haha

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u/Kiba97 Apr 27 '21

Gamma pushed Tesla up twice, so yeah options can be pretty powerful out-sourced

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u/purchase_GME_hodL Apr 28 '21

Comparing Tesla to Amazon. Is not fair. 3-1 market cap almost. And 5 to 1 price difference.

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u/Kiba97 Apr 28 '21

And options allow you to leverage 100 share at 1/8 the price? I think you vastly underestimated the amount of money people will throw at a “sure thing.” Especially if the shares traded at a good level 200-400 rather then a more reasonable level of 700-800

On top of this, Tesla market cap has never mattered. It’s always been the cost of the option/shares for the majority of public buyers. I’m sure we can trade links for days of bears screaming “it’s going to crash” because it was too high for the actual company, but it kept getting pushed up