Stock splits & moral splits
Saying goodbye to the era of 4-digit tech stock prices & questioning the morality of secondary sanctions.
Good morning beautiful people! ☀️
You deserve all the joy in the world today. And I hope to share a moment of joy with you here in this newsletter :)
Daily quote —”One could argue that modern life conspires against friendship, even as it requires the bonds of friendship all the more.” —Jennifer Senior in “It’s Your Friends Who Break Your Heart”
Democratisation of trading continues.
So Amazon stock rose 6.6% postmarket from plans to split its stock by a 20-to-1 ratio. This means it is easier for retail investors to buy shares, which I reckon will be a hot sell.
Alphabet (announced just last month), Apple & Tesla (both in 2020) had done the same. The days of 4-digit stock prices are over, which I reckon could be a good thing to give them the allure of being smaller and less scary. This could be good as a social effect.
June is when this would come into effect for Amazon. So maybe save the date if you’re thinking about buying in?
Oh, and they also announced a $10 billion share buyback.
China feels the aftershocks.
There are threats all-around of secondary sanctions. Why do I have a feeling the world has been far too ready for this moment ahaha
This Bloomberg article mentions that:
U.S. Secretary of Commerce Gina Raimondo warned that Chinese companies wanting to buy American equipment and software would be cut off if they supplied chips and other advanced technology to Russia.
Yay, more business for domestic companies?… (or at least another opportunity to innovate?) Isn’t that kind of what the CCP is already trying to do.
It seems like the world is finding ways to entangle China in Russia’s woes. In order to steer clear of international dismay, China will need to walk on eggshells with the next moves they make.
However, as per other news I discussed weeks ago, I really don’t know how much China needs the rest of the world for the sustenance of a healthy economy anymore? It seems they have become (or at least, on a good track to being) self-reliant. This may just be another accelerator if China choose to play it that way.
Also, I don’t know how I feel about the ethics of secondary sanctions. Seems very slippery slope to me. Especially when there are vague and undefinitive rules involved:
It is a legal gray area. According to the Treasury Department, basic transactions with sanctioned entities are still allowed. What’s not clear, however, is when dealing crosses the line. For example, Chinese companies buying gold from the Russian central bank with U.S. dollars could open doors to secondary sanctions, according to Autonomous Research.
By that logic, many Chinese companies could end up in Washington’s crosshairs. State-owned companies buying stakes in Russian energy and commodities firms at Beijing’s bidding could be seen as aiding Vladimir Putin’s aggression. Raimondo also singled out China’s chip foundry giant Semiconductor Manufacturing International Corp., which is already blacklisted, for further export controls.
This seems like the convenient opportunity to clamp down on Chinese companies already in the US’ bad books. I am not sure who will come out morally superior :/
On friendship.
In “It’s Your Friends Who Break Your Heart,” a beautiful article on friendship from The Atlantic, Jennifer Senior shares:
When I was younger, my friends had as much a hand in authoring my personality as any other force in my life. They advised me on what to read, how to dress, where to eat. But these days, many are showing me how to think, how to live.
Here are some of my key takeaways:
Friendships that form without announcement, those void of complexity, last.
It is still possible to love the person they were without loving who they are today.
The lack of reciprocity of time & effort will slowly weather a relationship down.
Making our friends our substitute families is dangerous because they will end up paying for the failures of our families of origin. This is when squabbles harbour much larger emotions than differences in philosophy.
Creating healthy rituals for friendship is just as necessary as rituals in other areas of our life.
Envy is the most difficult emotion to overcome within a friendship. Thus, actively ensuring a power balance is key.
…and that is all for the short and sweet thoughts of the day!
Let me know if you like me focusing on fewer topics and doing more depth thoughts or more topics with more brief notes. I’ve enjoyed both, so would love to get your opinion. 😊❤️
Ooo yes, and it is Thursday, so feel free to checkout my website later today for a new entry to my Happiness Journal!
Have the best Thursday ever,
Angeline
Resources consulted:
“Decision time.” The Bloomberg Open, Europe Edition, Bloomberg, March 10, 2022.
Ren, Shuli. “China Risks Getting Snarled in Web of Russia Sanctions.” Bloomberg Opinion, March 9, 2022.
Senior, Jennifer. “IT’S YOUR FRIENDS WHO BREAK YOUR HEART.” The Atlantic, February 9, 2022.
Wittenstein, Jeran & Soper, Spencer & Day, Matt. “Amazon Jumps on Plan to Split Stock, Buy Back Up to $10 Billion.” Bloomberg, March 9, 2022.