Amazon just announced a 20-1 stock split & 10 billion dollar buyback!

Holy smokers that ain’t no dang jokers wow big huge amazon news here today uh we got to talk about what just came out here we’re going to talk about um my perspective on this is amazon stock and easy money stock to buy now and kind of my perspective on that also going to randomly talk about oatley’s earnings in this video as well i know it’s a random subject to

Throw into this video as well but uh oli’s not like a big enough company i feel yet to uh do like a full dedicated video to their earnings so i’m just going to cover a couple random numbers from the oatly earnings in this as well but if you didn’t see amazon announced this 20 for one stock split 10 billion buyback the moment i saw that the moment i saw that i said

Oh amazon’s gonna make a move okay like as soon as i saw that headline i saw 20 for one split i saw 10 billion buyback and i’m like okay it’s gonna make a move and sure enough after hours it’s up over seven percent as of right now flirting with three thousand dollars a share and it’s just like like no doubt when you see a headline like that it’s gonna make a move

Okay and so sure enough it did all right now if we think back this is very very important right if we think back to february 1st 2022 after the bell that day google parent alphabet announced a same exact thing a 20 for one stock split hmm okay so you know this is interesting that was the first stock split you know google announced it in quite some time and if we

Think for a moment let’s spend a moment and let’s think what has google stock done since that stock split because what i saw and what the consensus was is by google stock it’s about to go beast mode they just announced a split it’s gonna go beast mode right but what’s the truth has google stock on beast mode let’s jump into this well no it has not the fact is

Going into those earnings right into that report the stock was twenty seven hundred and forty nine dollars a share right and here today the stock is twenty six hundred dollars so after that announcement and despite all that hype and all that excitement and all google stocks gonna go crazy the stock is down since then right it made in the next day after the news

Came out it made a huge spike up to 3 000 plus dollars and then dropped off a cliff now to be fair with google stock you know the market has not been good since then we’ve the market’s been bad since then right and uh it’s just it’s been an ugly market in nasdaq as of yesterday it went into bear market russell’s been in bear markets things like that right nasdaq’s

Much more important for google so nonetheless it has been a bad market so if the market had been neutral or dare i say if the market had been bullish and we had been in a bull market maybe this is a different scenario and google would have moved up to 3 500 and moved up to 4 000 and things like that right we’ll never know what what would have truly happened but you

Know at the end of the day the truth is google stock is down since they announced their big stock split which goes to show you and it’s not like a for sure thing like oh this company’s announced on 241 stocks but their stocks going to the moon doesn’t work like that and that’s exactly what we saw kind of play out with with google here no you know obviously seeing

This announcement everybody’s like you know off to the moon but where did that even start from like why are why you know specifically the retail crowd specifically why are they thinking like oh big company announces stock split that means the stocks go on the moon well tesla tesla was the one that made everybody believe that if you announce the stock split your

Stock’s about to go beast mode okay and the reason being is essentially tesla was in a chill-out period for several months and this was in uh kind of the fall time of like 2020. it’s a chill-out period it wasn’t really doing much and the stock was kind of consolidating wasn’t doing much and then also they announced a stock split and boom stock went to the moon and

So because that happened and because tesla is such a famous stock in the stock market the most famous stock in the stock market a lot of people started to believe oh if a company comes out and announces a stock split their stock’s going to go beast mode and it’s like that’s not really the way it works the market also made a beast run after that and tesla stock

Made a beast run based upon a lot of fundamental reasons as well as well as being caught up in kind of a retail hype cycle at that particular time and so it’s very important to remember that tesla didn’t just go up because their stock was splitting that was just an extra kind of fuel for the fire in a market that ended up starting to go into bull mode again and a

See also  Porsche Boxster Geek Out | BeatTheBush

Tesla stock that got caught up into a hype cycle outside of just a stock split okay so the truth is amazon stock doesn’t have to make a beast move um but with that being said i think uh in in my opinion i’m going to share with some things with you and why i think actually amazon is easy money and why i think uh amazon stock is about to make a beast run we’ll go

Over that in just a moment so real quick uh covering the oatly earnings from this morning here oatley if you didn’t know is a plant-based uh they basically make oat milk products that are the best selling out there like they move their volume they move is insane the velocity of their products is insane you’re gonna it’s gonna become a i would call it a very famous

Brand over the next few years if you’re really in the know you know about oatley but i would say most people don’t know about oatley but they will in a few years from now they also make ice cream products and a lot of the products that kind of replace dairy related products right so their earnings just came out revenue is up 46.3 percent year-over-year incredible

Number ema uh revenue is up about 14 that’s kind of the weaker point of the company america’s so think of the us up 96.5 revenue asia revenue was up 97 okay these two markets here are the most important markets for oatley moving forward uh in my personal opinion let’s say you know the european market does not matter in the middle east in other markets those matter

As well it’s just these are these are what’s gonna you know when i look at the next let’s just call it the rest is a decade the next eight years right of revenue growth for this company you know america’s is gonna put up just some incredible numbers year after year after year after year uh based upon their sell through and kind of their their stickiness to their

Product no pun intended and same thing with asia the asia opportunity believe it or not could be bigger i don’t want to get too hyped on the asia opportunity but the asia opportunity could be bigger they just opened up a massive facility in china that could be bigger than america’s and the european opportunity combined and when you look at a company like tesla

Right and what numbers tesla’s putting up out of china and you start to think about oatly and you start to think about how many people live in china for instance and i’m not even talking about the rest of asia i’m just talking about the china opportunity you know there’s no doubt that that opportunity in itself could be bigger than america’s in europe combined

Okay and so when it comes to oatley this is not a company i’m focused on for gross margins right now or or net margins or net income or anything like that i’ll start to pay attention to that stuff closer in 2023 but for me right now with this particular stock in this particular company i care all i care about right now is their brand their revenue growth and their

Production growth and getting their new facilities up and running and that’s exactly what they’re doing and so they got a massive new facility out in utah um so i’m i’m jacked up i love this stock i’m gonna continue to buy this stock i plan to continue to buy the stock for at least like the next i would call it three to six months if not the remaining of 2022 i’m

Hoping to pick up shares anywhere is between five dollars a share and eight dollars a share that’s kind of my ideal kind of price range for oatley anywhere is between five and eight and just continue to add to my ownership of this company over and over and over again for the remainder of this year and my hope is that stock price stays low you know at the end of

The day wall street’s going to come flying to the stock not not in this sort of market right now that we’re in in the short term because obviously they don’t care about these massive revenue growth companies 46 percent but uh wall street will come flying in this baby i can promise you that um it could start in the back half of this year my hope is it doesn’t start

Till 2023. that’s my hope we’ll see what happens there but yeah oatley just a growth beast okay now let’s jump back into amazon here so you know if you’re not familiar with the service i’m using here and kind of what i have set up let me explain this real quick okay so what we’re looking at here this is market cap this is price to sales ratio over here so ps

See also  Leon Cooperman Stock Market Will FALL 25% If Elizabeth Warren Is Elected

So uh basically it’s uh you know revenue of the company versus their market capitalization price to sales ratio what we’re looking at down here is p ratio so the earnings of the company versus their their market cap of their stock price so you can either you know take it eps divide it out by stock price or you can go net income by uh market cap okay so that’s p e

Ratio very important metric and down here you got price to bookmetric okay and what we’re gonna see is over here is the numbers uh amazon’s at today so it’s at a three price to sales ratio it’s at a 1.4 trillion dollar mark cap it’s at a 42 p e ratio it’s at a 10 uh price to book ratio okay and the numbers over here are going to change based upon where the dat

The where i’m at in the chart at that particular time and what the company’s p ratio was price to book ratio price sales ratio was at that particular time okay so that’s what we’re at right now now if we go back to some other drops out so let’s go to the march lows for this company right march lows right around march 23rd roughly of 2020 right when it hit its

Lows it was at sixteen hundred dollars now at that moment the company was at a price to sales ratio as you can see over there in the the the left hand corner right was at a price of sales ratio of 3.37 this versus a 3.02 here today so amazon today is trading at a cheaper price to sales ratio than what this company traded at in the lows of march of 2020 in that

Crash how insane is that to think about okay the p e ratio on amazon today is a 42 versus in the lows of the march 2020 crash was in 82 was in 82 like how ridiculously insane is this right the price to book in that crash of march of 2020 for amazon stock was at a 15.25 here today amazon’s at a price to book of 10.26 okay so what this is showing you is that

Amazon today trades at four cheaper price to sales ratios p ratios and price to book ratios than amazon did in the lows of the march of 2020 crash which should just blow your mind okay that’s insane to think about insane to think about that’s how oversold this stock has now gotten right now if we go back to the december 2018 crash and the lows were right around

Christmas eve of uh december that year and i remember it like it was yesterday it was vicious i got tore up in that market okay and we go back to that time frame amazon hit 1352 a share okay now during that time frame the price to sales ratio was 3.2 in this company it’s 3.02 today so cheaper price of sales today than during that crash the p ratio at that time

Was an 82 versus a 42 here today and the price to book at that time was an 18.47 versus a 10.26 so once again even in the lows of that crash right the the december crash which at one point in december uh we were on pace for the worst december in the history of the stock market which is extraordinary to think about we got saved in the last few trading days it saved

Us essentially from it being the worst december ever it just was one of the worst decembers ever so here today that stock trades cheaper than it did back then right let’s let’s back it up to even uh bigger time frames okay let’s look at let’s look at so this i remember this stock got hit really really hard in uh kind of like 2014 and 2015. so if we go back at

That kind of time frame there stock was at about 3 15-ish let’s see i kind of at the lows there about 305 roughly okay so let’s draw a line there so at about 305. um and at that time the company was at well they had a negative p e ratio on them right their price to sales ratio at that time was cheaper this was before it made its huge run right the price to book

Ratio was at about 15 versus a 10 here today so ps was cheaper that’s mainly because amazon web services didn’t really get respect and they didn’t have their advertising business so they really just you know amazon back then was really just valued as a retailer amazon web services didn’t get the respect it does today and their advertising business was like almost

Non-existent compared to what it is today so amazon was really just valued as a retailer in general and so price of sales was cheaper then yeah but p e ratio obviously was a joke because they lost money versus now the their profit machine and price to book was you know 50 higher than what it is today right now if we go back let’s say oh let’s say to the double

See also  19 Kitchen Essentials For The Home Cook | The Financial Diet

Dip recession fears time right um so right there around february somewhere right around there february of 2012 a lot of stocks got hit prices sales ratio cheaper right but p ratio was at 130 versus a 42 here today uh price to book was roughly in line so during that that double dip recession fear you could have got amazon for a really really cheap price there okay

Now let’s go back to the great recession right the lows of the great recession were in uh february of 2009 march 2009 somewhere in there and so if we go back to that time frame for a good old amazing zone there of about let’s call it february of 2009. so you’re right about there roughly okay so at that time amazon traded at a cheaper price to sales ratio the p e

Ratio was messed up at that time i think they had some sort of like one-time i don’t know advantage that was going for them or something like that so it was kind of a messed up p ratio uh price to book was roughly in line so during the lows of uh the let’s call the great recession you could have got this stock for just as cheap if not cheaper on valuation metrics

Right and so you know nonetheless when you start to really look at this and if we really want to play crazy then we can really go back to like the tech bubble days which is a whole other thing so let’s see the tech bubble started wrapping up around i don’t know was it 2002 um so somewhere in there roughly and at that time priced a sales ratio of 1.6 obviously

They were a money loser and price to book was negative back then it was a negative three so you can’t even compare it back to that time frame okay so what this essentially is going to show you when it comes to amazon stock oh let’s look at this one let’s look at this one here um so this is 2016. roughly there the stock fell to 500 ish a share their price to

Sales ratio 2.4 versus three today p e ratio of 445 this company had on it versus a 42 here today and a price to book just under 20 versus here today it’s at a 10 during that that crash that the stock had right so what you’re essentially seeing here is amazon is trading a you know pretty much in line with the cheapest it ever has you know even in the the depths

Of these other crashes and corrections that have happened in the past okay and so that’s why it was either yesterday the day before i you know in one of those videos i i said amazon is about to make an epic run and i don’t know if it starts in a few weeks from now or a few months from now but what i can tell you is amazon is set up as a stock uh to make an epic

Run because it does not trade this cheap for very long it can maybe trade this cheap for a few weeks maybe a few months and then it’s back on to another huge rally where it’s going to rally to 4 000 plus dollars a share and so when i look at amazon stock and i look at the fundamentals of this company right and i look at the valuation of this company everything’s

Lining up that this stock is about to make an epic run now if you want to talk about throwing uh some fuel on the fire go ahead and add in a 10 billion dollar buyback and go ahead and add in a 20 to 1 stock split and you just put some fuel on the fire so amazon stock’s not a stock i personally own but i gotta say the stock is easy money and this stock will be

Substantially higher a couple years from now than it is today and it will go on an epic run again and everybody will be like amazon’s back there it is okay and so this is just more fuel for the fire regardless if they did this 24 1 split and the share buyback this stock was was primed for a massive move up this is just fuel on the fire and yes the stock is easy

Money let me know your guys opinion in the comment section i’d love to hear from you guys as always much love i won’t be playing any short-term call options or anything like that in amazon it is very tempting but i won’t be doing anything like that so uh you know this is not my name of the game i try to stay in my lane focus on long-term stocks and those sorts of

Things so anyways guys much love as always enjoy the other videos on the channel and have a great day also get some free stocks from moo-moo pin comment down there literally i need to pause it you get free stocks that’s like the most amazing deal ever check out pin comment

Transcribed from video
AMAZON | HUGE NEWS | BUY NOW? By Financial Education

Scroll to top