All in or DANGER | The 20-1 Google & Amazon Stock Splits.

are you about to get rich investing in

google and amazon right before the huge

stock split coming because after all on

february 11th google announced a 24 1

stock split that will take place on july

15th you'll have to have your shares

before july 1st and just a month later

amazon announced a similar 20 for one

stock split scheduled for june 6th

you'll have to have your shares before

may 27th this means that shares trading

for roughly 100 or 2 800 will trade for

roughly 140

per share and this brings back fond

memories in the summer of 2020 apple and

tesla both announced a stock splits

apple shares after the stock split

announcement rallied 36

leading into the stock split and tesla

skyrocketed an insane 66

leading into the stock split

so we should definitely go all in on

google and amazon right well let's talk

about that first what is a stock split

and second should you actually go all in

on these stocks expecting an apple and

tesla style skyrocketing well first

remember that a stock split doesn't

change the actual underlying value of

the company it just means that rather

than a company selling you a pizza

that's 20 inches and it's a super sized

pizza way too much for you to eat maybe

it's just way too expensive or whatever

they're just gonna sell you one slice or

one twentieth of that bigger pie of

pizza so you're just getting a smaller

share for a smaller price nothing's

changed here it's just like paying 20

for the pie or a dollar for the slice

there's no discount for larger sizes

but why then do the stocks tend to run

up like apple and tesla did and should

you invest in amazon and google before

the split well stocks tend to go up due

to social momentum and hype simply put a

lot of folks like to speculate that a

stock will do well going into a stock

split and because folks speculate that

the stock will do well the price

actually tends to go up reinforcing the

belief that stock splits make prices

rise consider this just after google

announced their stock split their stock

was up eight point nine five percent it

almost hit thirty one hundred dollars

from a low of 249

just a few days before that this for a

1.7 trillion dollar company is a huge

movement unfortunately once the split

actually happens the stocks tend to go

down for example look at apple and tesla

when apple and tesla split their stocks

on august 31st 2020 both of their stocks

started plummeting about four days later

on september 4th they fell and gave back

about 60 to 70 percent of their gains so

the theory here has always been okay buy

the rumor of the stock split or buy the

news of the stock split and then sell

the actual happening sell the event this

is the classic end to any momentum trade

if you're not out quickly enough you end

up getting left holding the bag now

fortunately in the case of apple and

tesla they're great companies and those

stocks are now worth more than before

the split and after the split so if you

held you'd come out ahead anyway but can

you ride the amazon and google split up

just like apple and tesla maybe not

why because our market is really

different now remember how i mentioned

that google stock skyrocketed after the

announcement of the split reinforcing

the argument that stocks go up before a

split well google basically immediately

sold right off again and the split

hasn't happened yet so what's going on

well what's happening is we're in

probably the most uncertain environment

for investors and any increase in prices

just gives investors whether they're

retail or institutions an opportunity to

sell their shares at breakevens or

slight profits putting new downward

pressure on the stocks this means the

whole self-fulfilling momentum that's

usually created or was created during

the apple and tesla stock splits might

never end up coming and that's because

any rise in price is just met with new

selling now this doesn't make amazon or

google bad companies to invest in but if

you're looking for a quick profit in

amazon and google because of the stock

split it's less likely to happen this

time around thanks to fears of

hyperinflation war in ukraine nuclear

uncertainties and fears of a straight-up

recession of course you could always

just buy and huddle the shares and not

worry about the fluctuations both amazon

and google are great companies and i

would never bet against that