 Hey, what's up everybody? Good morning. Good morning Yeah, working from home today, so Thought I'd step outside to do this video and so hope you guys are okay with that still need to do some landscaping work We're actually getting bids right now for uh, we're gonna You know probably put some pavers out and some turf and you know make it look nice But until then this is what you have So But good to see everybody. Hope you're doing well Welcome to dedicate it to financial planning. This is my channel Russell Moore Please be sure to subscribe like and notify say it with me Subscribe like and notify if you want to get more content in the future hit the notify button, okay? What I'm gonna talk about today, I'm kind of I'm gonna try to keep this really brief I know my videos can be too long sometimes you guys I know it my wife tells me all the time, so So what I want to do Well, she doesn't tell me all the time. She just says, you know, some of them I could get to the point a lot faster and she's right So I'm gonna try to stick to the point and this video is about the up-and-coming stock split Many of you may have heard about Google and Amazon are having 20 to 1 stock splits and Some people are like man, this is something I want to jump in on or or not And so I'm gonna kind of here's what I'm not doing I am not advising you on whether to invest in Amazon or Google But I am gonna probably share a few of the pros and the cons of the stock split and Hopefully you can make a sound decision and for those of my believers out there, you know, you're gonna I'm sure you're gonna pray about it. So but let's let's let's go into a little bit and before I can even go into whether or not To purchase or jump in on the stock split some people don't really know what a stock split is and I really have thought about it just a simple way of explaining it Because some people think oh wow stock split that means they're gonna be that's the shares are gonna be cheaper and And if you own the stock already that means you're gonna have more money and And that's not true. In fact the value of the stock does not change So if you have five thousand dollars worth of Amazon after the stock split You will still have five thousand dollars. The only thing that will change instead of you having 10 10 shares You'll probably have like a hundred shares and let me explain it to you this way Let's take a dollar bill. Let me see if I have one. Oh, I don't have my wallet on me Okay Let's take a dollar bill One dollar bill is the value of it is one dollar, correct? All right But four quarters is also Equivalent to one dollar Four quarters and one dollar bill So basically what they're doing is they're saying like okay, we have a dollar You know we have a dollar, but what we're gonna do you can either We have one dollar correct or you can have four quarters twenty five cents To make it equivalent to a dollar you see because it's cheaper and you have more quarters You have more quarters and it's less To come to the same value and that's exactly what happens with a 20 to one split 10 to one split Seven to one split five to one split. That's what Tesla had a Little over a year ago. They had a five to one split And so all it is is you begin to get more shares and the purpose of them doing this There are a couple of purposes, but the main purpose a lot of times is companies are finding that okay We want to open up and allow other investors to get in on our company We want more owners because remember you when you own this stock you become a Shareholder you become the owner of the company All right, so what they're doing is they're saying look we want to open it up and give more people opportunity most people won't buy Amazon at $2,700 a share The average everyday person So you have a couple of types of investors you have one person Who you have one person who may have bought shares of Google and Amazon several years ago when the price was low, okay, so now they've acquired these shares and you know And then when the stock split happens they'll have even more But then you have some people who have never invested in Google They've never invested in Amazon and if you look at this at the price the share price now I think Google was at around 2900 and Amazon's is around the same price Here's a few things I want you to take a look at though because some people are like well when do I buy? Do I buy right before the split? Well first? Let me give you the split dates in the deadlines. This is very important Google Their date on when they're gonna do the stock split is July 15th But you have to have bought some shares bought their shares by July the first So if you buy shares of Google on July 2nd You will not be a part you will not be able to participate in the split It's very important for you to understand that so you have to buy a prior to the 1st of July Amazon June 16th is When the stock split is going to take place. I'm sorry June 6th. I said 16th Sorry my bad June 6th is when the stock split is going to take place May 27th Is the deadline so you need to have bought stocks before the 27th buy the 27th, okay? So the 27th is a deadline so after the 27th you will not be able to participate in the stock split All right now after the split is over you can purchase stocks All right, so that's the deadline so everybody has to go in before those deadlines. That's very important for you to remember Okay, that's number one All right, so now that you established now you got to say okay. Well, which one do I purchase both or do I purchase one well? Practically speaking you got to look at okay. Let me look at my finances. That's one thing How much money do you have to invest now? Get this if you just bought one share of the Amazon and one share of Google You will have 20 shares at the stock split. You'll have 20 shares of each of those stocks So some people have decided to do that Some people said you know what? I don't know if I want to get involved in it. Well to me you want to look at the stocks You got to look at these companies and this to me. This is where fundamental analyzing comes into play There's technical analyzing fundamental analyzing. This is where fundamental analyzing comes into play Amazon They're not going anywhere This company is not going bankrupt They're going to continue to improve they're going to continue to grow as especially now that the AWS is on It's on a whole another level the cloud AWS it's like they're just It's just a cash cow Google it's also up there as far as the cloud, you know, they're they're they're pretty competitive Mainly the two tops are Microsoft in Amazon Assure by Microsoft and I want to say that Microsoft could have a split They could have a split, you know, they could have a split at one point. I don't think Google and Amazon are alone Okay, so be be careful We continue to save your money and hold it for investment be ready to invest. All right, so So these are two great companies. They're not going anywhere And so there's there's two types of mindsets Some people are like, you know what? I just need to make some money right away I need to I just want to make a quick buck and get out And so they want to buy and here's what usually happens Usually prior to Sorry prior to the split And if you look at some of the splits if you even take a look at Tesla's split that they had they're five to one What happened was you had a bunch of investors prior maybe a day before a week before Purchase a lot of Tesla shares and the stock went up Okay So that's that's retail investors, which is you and I Or the institutional investors the hedge funds the big boys It went up Day or two maybe within a week The stock went down they sold off The reason why that happens is some people are just They were just trying to make a chunk of money and they knew that that stock was going to go up because everybody because you got to remember Right now Google and Amazon. They're at around almost $3,000 each Okay, when the stock split split happens, it's they're going to be between 140 and 160 dollars per share They're much cheaper now. So now people are going to I can afford to buy some now Even if some people just say, you know, I'm just going to buy five shares You know, but here's the thing in order to in order to to capitalize on them They're going to have to buy it at that high price first Now you could wait Here's another option Say you the market goes up People are buying Google people buying Amazon they go up They're going to come down Maybe within the first week that's been historically what happens. I can't promise that that's going to happen But historically that's what's happened after the split it goes up and then people sell off Some people wait till the sell off because what happens after the sell off It's usually lower than the split price When the original split took place on July 15th for Google and June the 6th for Amazon That that day when during that split boom, it's going to go up Even prior to that prior to that the stock will go up But then it'll come down Most of the time historically it has come down and it goes below The price that you would have bought on the split day So instead of 140 between 140 and 160 it might be a 135 or 130 And if you're thinking of long term You could say wow, okay, I'm going to jump in now If you're thinking about short term, I want to make a profit right away and get out of the market You could buy it prior to But you want to keep an eye on it You can buy it prior to so some people say well, when do I buy? Do I buy a day or two before? Here's the tricky part When Elon Musk had his stock split we were in a We were in a market a bull market So the market as a whole was going up The difference right now is we're in a downtrend We're in a bear market I know people want to they want to say we're not But all evidence points that we are right now in a bear market and the danger of that is If you buy too early if you buy now Well, google and amazon may go down lower In the next couple of weeks next week. I mean we have we're talking about june 6. It's the first split amazon And to me, I think people should Personally, I'm waiting I didn't jump into google right away Once they announced it they announced it. What a few weeks ago I didn't jump right away. Now. This is still your choice your decision. Some people might feel like well, I think It's going to go up within the next week or two or the next month That deep both of these stocks are going to start going up above 3000 and I want to get in now Before it starts going up It's your choice But right now I'm looking at the market the way the market is looking it still keeps trending down We have a day or two where the market goes up. For example, when these announcements came out Speculation That's people responding to news people always investors always respond to news, but the true investors don't People that are just getting started respond to news Now if you are short term a trader I can understand that if you're just trading if you're an investor You're thinking about long term now. I came out here and now I got bugs everywhere. We're flying. So forgive me. So um If you're long term, that's what you have to decide am I in it for the long haul or am I in it for short term If it's short term Then you're probably going to want to get in sooner than later I'm holding off just a little bit. I'm going to give it maybe another week or so see what the market does and then after that I'll see if I'm going to go ahead and get more shares Of amazon and uh google and see that's another thing too if you don't have any shares But I will say this I think the investment is worth it because the companies are worth it Even if you know you say hey look i'm going to take some money that I can afford to like lose I wouldn't go grab a bunch of money And just throw it into these stock splits. I wouldn't do that I would have it has to be money that I could afford to just and you And look you guys you're not going to lose these companies are doing well. They're not going anywhere No matter what the market does how far it goes down amazon and google will be here 10 years from now Amazon and google will be here and because of that You could be confident that you're investing in the right company. So it's just now you just have to determine Is it about long term for me because that market is good. It's going to drop They normally the stock split goes up and then it drops So and then what usually I'll do is buy more shares when it drops Because I'm more of a long-term investor and I'm not in this to trade There's some things I do short-term trading now another option is options Some people will be doing options But those usually people that are doing options call options going long spreads People that are doing options are going to uh, it's more of a short term when they'll invest And have an expiration date shortly after the split and then they may have a few puts Making money when the when it's that initial sell-off when it happens They'll have some puts to make money when it goes down So it's it's a golden opportunity to make some money in this situation But you do have to know what you're doing. You want to be and you want to decide, okay? Is it long term or short term? If it's long term Then you can pick up some shares and just hold them Just hold them It's going to go up usually that stock split it's going to go up and then it's going to drop And here's what you don't want to think You don't want to assume that what happens with amazon is going to happen with google Because they're a month apart right june june is amazon july is google and what people sometimes do is make the same mistake They'll make the mistake of oh, whatever happens to amazon is going to happen to google So i'm going to play them the same No, you don't want to do that your different companies And you just don't know where the market will be a month can make a big difference in the stock market and so Write down a little plan plan little goals say hey look maybe i'll just pick up one If you don't have any shares of these companies you might want to say well, let me pick up one right now You know let it drop they've been dropping the market has been dropping see what it's going to do Maybe pick up one or two shares You know throw ten thousand dollars five thousand and Five to six thousand dollars at each each one now you got ten thousand So what happens if you have two two shares of each company? When the split happens you'll have 40 shares And and the stocks will drop to 140 150 160 so if you want to you know go back in now some people i don't have that kind of money Well, you can wait till the initial split After the split is over the sell-off will happen you may be able to get it for 130 125 That's what i know i you know some of i i didn't do that with tesla already i had already owned tesla I just bought more shares when it dropped because i wasn't intending to sell for our short profit So when it when the initial sell-off Took place after it went up it went up after the split and then it went down when it went down I bought more shares By the dip Now that's for the long term. That's for the long term investor. Okay. I've already had 18 minutes. I've gone too long I hope this makes sense to you you got to decide i'm not telling you what to do It depends if you're short term if it's short term then you want to get in there before And it's going to go up because people are going to be buying And a lot of times what happens is as soon as that's that i know this is with tesla Man, it's that day the split happened It took off And i made i made some money and what some people will do is they'll sell They know it's going to drop so they'll sell at a profit You got to find out how much do i want 15 percent 10 percent 5 percent 3 percent Get that profit sell it Hold that money and then hold some shares you can hold sell some hold Let it drop and buy more Okay, but here's the thing some people are skeptical about it I wouldn't They're two great companies. That's what you got to look at. They're going to continue to be here And you and the it's going to go up. It's definitely going to go up I don't know if it's going to stay up historically stocks, but sell off Okay, they sell off and then you can just buy when they do drop So don't panic if you do buy some of the if you buy google and you buy amazon And it goes up during the split and then it drops. That's normal. It always happens. All right Not always 90 percent of the time. All right, so I pray for you lord. I pray that they make the right decision And I thank you for wisdom right now. Jesus name amen All right, I'll talk to you later. Have a great day and be sure to watch my video on china I got some things about china olibaba td uh jd.com 10 cent a lot of people are afraid to invest in these companies, but I've been doing some research in Uh olibaba is down to 74 dollars a share. Anyway, talk to you later. Have a great day. Bye