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Locked: Why AMZN 2k? Why GOOG 1.2K?

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Why AMZN 2k? Why GOOG 1.2K?

If amzn stock prices are around 2k, means for 100 shares it cost around 200,000.
How can a median salary person buy 100 shares of amazon or even 200 shares of GOOGLe?

When banks are not offering even 2% on GIC... where can people invest thier TFSA, RESP and RRSP?

I strongly feel they are over priced for an average salary of Canada or US... so amazon shares should be sold for $100 and GOOG for $50.

Like how Toronto houses prices should drop because they are overpriced.
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Lavaris1 wrote: If amzn stock prices are around 2k, means for 100 shares it cost around 200,000.
How can a median salary person buy 100 shares of amazon or even 200 shares of GOOGLe?

When banks are not offering even 2% on GIC... where can people invest thier TFSA, RESP and RRSP?

I strongly feel they are over priced for an average salary of Canada or US... so amazon shares should be sold for $100 and GOOG for $50.

Like how Toronto houses prices should drop because they are overpriced.
The value of the company has little, or nothing really, to do with its stock price. The argument you point to, that to buy an ordinary or standard lot of 100 shares of either is cost prohibitive to average retail investors is valid. I personally would wish Google or Amazon would split their shares to attract more retail investors. Google, in particular, should eliminate its triple class share structure.

In terms of which is the better value, that's hard to say. I personally don't like them at either price.

Honestly, if you just want Amazon and Google, buy a low cost market cap weighted U.S. technology index ETF. The underlying holdings of the two, and Apple, would be about 60% towards those three stocks. So, you're going to get 60% of the torque, less the nominal MER on the ETF and tracking error, to the extent it exists, plus any gains from securities lending by the ETF manager, just buying that ETF.

Cheers,
Doug
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dmehus wrote: The value of the company has little, or nothing really, to do with its stock price. The argument you point to, that to buy an ordinary or standard lot of 100 shares of either is cost prohibitive to average retail investors is valid. I personally would wish Google or Amazon would split their shares to attract more retail investors. Google, in particular, should eliminate its triple class share structure.

In terms of which is the better value, that's hard to say. I personally don't like them at either price.

Honestly, if you just want Amazon and Google, buy a low cost market cap weighted U.S. technology index ETF. The underlying holdings of the two, and Apple, would be about 60% towards those three stocks. So, you're going to get 60% of the torque, less the nominal MER on the ETF and tracking error, to the extent it exists, plus any gains from securities lending by the ETF manager, just buying that ETF.

Cheers,
Doug
No I don’t want to compromise... you are asking me to buy technology index shares... like to someone with an average salary suggesting a new home buyer to buy a condo.... instead of a detached home....
I want to buy amzn only at current fundamental levels with current face value... not with split price...


I don’t want compromise to condo or index share
I want detached home and amazon shares
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Saskatoon
Then find a higher paying job, or accept the fact you can't have everything you want in life.
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Lavaris1 wrote: No I don’t want to compromise... you are asking me to buy technology index shares... like to someone with an average salary suggesting a new home buyer to buy a condo.... instead of a detached home....
I want to buy amzn only at current fundamental levels with current face value... not with split price...


I don’t want compromise to condo or index share
I want detached home and amazon shares
But your argument is that they are too expensive at current prices? It makes no difference whether they split their shares 10 for 1 or keep them the same, the value is the same. Why would you be arguing against a split that would you help 100 shares? Net-net, it is the same except you'd be able to afford, maybe 100 shares versus 10 shares.

If you are arguing Google and Amazon are not priced right, then, too, that has nothing to do with the price of the shares. That has to do with their price relative to their past, or future, twelve month earnings, or to their underlying book (asset) value net of any debts.

So I'm not really sure what you're arguing...if you think they are too richly valued, then don't buy them. If you think they are fairly valued, then buy 1 or 10 shares instead of 10 or 100. Nothing wrong with buying 1 share. If the stock goes up 50%, you now have $3,000 if you bought at $2,000, just as you would now have $300,000 if you bought 100 shares.

If you want to buy 100 shares, then buy the ETF. It's nothing to do with a detached home or a condo.

Cheers,
Doug
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Lavaris1 wrote: No I don’t want to compromise... you are asking me to buy technology index shares... like to someone with an average salary suggesting a new home buyer to buy a condo.... instead of a detached home....
I want to buy amzn only at current fundamental levels with current face value... not with split price...


I don’t want compromise to condo or index share
I want detached home and amazon shares
If you can't afford it at the current price, either save up or move on to another stock.... It's the same with houses. If you can't afford a detached, save up for it or buy a semi, town, or a condo
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schade wrote: If you can't afford it at the current price, either save up or move on to another stock.... It's the same with houses. If you can't afford a detached, save up for it or buy a semi, town, or a condo
So you are saying detached homes or those premium stocks are not with in the range of average salaried public...

Why would you suggest me to buy a condo?
Why cannot detached homes prices can be reduced to make them affordable for most of the public?
Like amzn shares can be reduced too for avg salary people.
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schade wrote: If you can't afford it at the current price, either save up or move on to another stock.... It's the same with houses. If you can't afford a detached, save up for it or buy a semi, town, or a condo
+1 for the reply. I disagree with your analogy. In this case, @Lavaris1 is still buying a detached home, priced at $2,000 per share. He's just not buying 100 homes. Call it a "tiny house". 100 tiny houses equal one large house.

If he buys the ETF, he is buying an fractional ownership interest in a mega mansion, and shares, proportionately, the rewards with his fractional co-owners. The co-owners pay a very modest, relative to the asset value, management fee to the ETF manager for managing their mega mansion for them.

Buying a condo would be buying shares in, say, Oracle Corp. or Intel Corp.

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Doug
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Lavaris1 wrote: So you are saying detached homes or those premium stocks are not with in the range of average salaried public...

Why would you suggest me to buy a condo?
Why cannot detached homes prices can be reduced to make them affordable for most of the public?
Like amzn shares can be reduced too for avg salary people.
Okay, now you're just trolling...next reply like this gets a post report from me...

Cheers,
Doug
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dmehus wrote: But your argument is that they are too expensive at current prices? It makes no difference whether they split their shares 10 for 1 or keep them the same, the value is the same. Why would you be arguing against a split that would you help 100 shares? Net-net, it is the same except you'd be able to afford, maybe 100 shares versus 10 shares.

If you are arguing Google and Amazon are not priced right, then, too, that has nothing to do with the price of the shares. That has to do with their price relative to their past, or future, twelve month earnings, or to their underlying book (asset) value net of any debts.

So I'm not really sure what you're arguing...if you think they are too richly valued, then don't buy them. If you think they are fairly valued, then buy 1 or 10 shares instead of 10 or 100. Nothing wrong with buying 1 share. If the stock goes up 50%, you now have $3,000 if you bought at $2,000, just as you would now have $300,000 if you bought 100 shares.

If you want to buy 100 shares, then buy the ETF. It's nothing to do with a detached home or a condo.

Cheers,
Doug
When someone with more money can buy 100 shares, why cannot general public buy it, why are they priced out of range general public affordable range?
I somehow feel it’s not good for the economy... prices will tank or should be tanked now...
[OP]
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dmehus wrote: Okay, now you're just trolling...next reply like this gets a post report from me...

Cheers,
Doug
Haha
So amazon shares prices cannot be brought down
Detached home prices cannot be brought down
People have to buy stuff with in thier range?
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Lavaris1 wrote: So you are saying detached homes or those premium stocks are not with in the range of average salaried public...

Why would you suggest me to buy a condo?
Why cannot detached homes prices can be reduced to make them affordable for most of the public?
Like amzn shares can be reduced too for avg salary people.
I should have added that you can still buy a detached, but it would have to be outside the GTA to get a lower price.

Premium stocks are within reach of avg salaried people, just not at 1000 shares, maybe 10 as mentioned by others. Start with a stock with a lower price, make money on it and work your way up to the 1000 shares of Amazon. That's how many are able to afford a detached in Toronto
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Lavaris1 wrote: When someone with more money can buy 100 shares, why cannot general public buy it, why are they priced out of range general public affordable range?
I somehow feel it’s not good for the economy... prices will tank or should be tanked now...
Since I'm a sucker for bashing my head against a brick wall, it doesn't work like that. A stock price reflects the proportional market value of the shares outstanding for a given company based on the company's assets, its debts, its past earnings, and its future earnings. That translates into a ratio, or a multiple, for each. On the former, it is a P/B or Price-to-Book ratio. On the latter, it is a P/E ratio or Price-to-Earnings ratio.

In fairness, stocks are more equitable than housing in that you can buy 1 share of Amazon and participate, proportionately, up or down in tandem with someone buying 100 or 1,000 shares.

Cheers,
Doug
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Lavaris1 wrote: Haha
So amazon shares prices cannot be brought down
Detached home prices cannot be brought down
People have to buy stuff with in thier range?
Uh, yes. Are you new to existence?
I WANT a mansion on the beach in California. So should I whine that since rich people can afford them, they should come down in price so that I can do? That doesn't make any sense, I can't even tell what you're trying to argue.
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schade wrote: I should have added that you can still buy a detached, but it would have to be outside the GTA to get a lower price.

Premium stocks are within reach of avg salaried people, just not at 1000 shares, maybe 10 as mentioned by others. Start with a stock with a lower price, make money on it and work your way up to the 1000 shares of Amazon. That's how many are able to afford a detached in Toronto
@schade In that analogy, though, the stock market is more equitable than the housing market. If I can buy 100 shares of TD or CIBC, paying me 6-8% per annum in rock-solid dividends, I would say that's still buying in the GTA.

Buying Qualcomm would be the equivalent of having to buy in Sudbury. ;)

Cheers,
Doug
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SaskCanesFan wrote: Then find a higher paying job, or accept the fact you can't have everything you want in life.
So simple, yet so many entitled people struggle with it.
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JayLove06 wrote: So simple, yet so many entitled people struggle with it.
-1 to this as I'm not sure it adds any value. Can't tell whether you're agreeing, or disagreeing, with @SaskCanesFan's sensible comment.

Cheers,
Doug
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dmehus wrote: @schade In that analogy, though, the stock market is more equitable than the housing market. If I can buy 100 shares of TD or CIBC, paying me 6-8% per annum in rock-solid dividends, I would say that's still buying in the GTA.

Buying Qualcomm would be the equivalent of having to buy in Sudbury. ;)

Cheers,
Doug
I was referring more to the price of a stock than the return you'll receive. There are a lot of stocks that offer a great return at a more affordable price, especially now with the market being down so much.
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SaskCanesFan wrote: Then find a higher paying job, or accept the fact you can't have everything you want in life.
For house hold income of 150,000 also cannot buy those shares or detached home...

$3000 rent
$1500 bmw car premium and insurance
$1200 day care
$300 - 2 Mobiles and home Internet
$1000 grocery all kinds
$1000 dining out and misc
Where is the room?
I50k is still not enough

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