What the Shopify Stock Split Means for Investors

SHOP's 10-for-1 stock split went into effect on June 28

Jun 29, 2022 at 11:45 AM
facebook twitter linkedin


Shopify Inc. (NYSE:SHOP) previously announced that it will be splitting its stock. This news comes as a surprise to many investors who are now trying to figure out what this means for the future of the company. In this blog post, we will take a closer look at the Shopify stock split and what it could mean for investors.

About Shopify

Before we explain the recent stock split, let's first take a look at what Shopify does. Shopify is a Canadian e-commerce company that specializes in providing online stores for businesses of all sizes. SHOP was founded in 2004 and has since become one of the most popular e-commerce platforms in the world. It empowers entrepreneurs all over the world to start their own online businesses.

Shopify makes it easy for businesses to set up shop and start selling online. The platform provides everything that businesses need to create an online store, including a customizable website, payment processing, shipping, and customer management tools.

If you bought anything online that wasn't on Amazon.com, Inc. (NASDAQ:AMZN), chances are you purchased through Shopify. Both these ecommerce stocks are trading at high prices and many eager investors have been eyeing the stocks for a while now.

With Shopify's recent stock split news, let's take a look at what this could mean for potential investors. But first, let's quickly review what a stock split is and what it means for the stock price.

What Is a Stock Split?

A stock split is when a company divides its existing shares into multiple new shares. This usually happens when a company's stock price gets too high and the company wants to make it more affordable for investors to buy shares. A stock split does not change the total value of the company, but it can affect the share price.

The Shopify Stock Split: What This Means For SHOP(pers)

So, what does the recent stock split mean for investors? For starters, it means that Shopify's stock is going to be divided by 10. SHOP's 10-for-1 stock split went into effect on June 28. This means that the price per share now that Shopify stock has gone through its split will be about $40.

Prior to the stock split, Shopify stock was trading around $400 per share after a major drop in price from its all-time highs of about $2,000. The recent stock split also allows for more retail investors to buy Shopify stock because it will inherently be more affordable.

Remember that the underlying fundamentals and value of the company won't change with a stock split. The only thing that changes is the price per share and the number of shares that are available.

Shopify's current competitive advantage is its platform. The ecommerce company has built an easy-to-use platform that helps businesses set up shop quickly and start selling online. SHOP also offers a wide range of features and tools that businesses can use to run their online stores.

This e-commerce enabler also provides banking-like services and financing to its customers which gives it an edge over its competitors. These unique features and services are what give Shopify a competitive advantage in the market. It has become a strong fintech company in recent years.

Shopify also has strong growth potential. The company's platform is used by businesses of all sizes, from small businesses to large enterprises. Shopify also recently entered into the retail space with its new point-of-sale system. This move will allow the company to tap into the trillion-dollar retail market.

Shopify looks to continue to be innovative by introducing NFTs, or non-fungible tokens. This new technology could potentially revolutionize the way we buy and sell things online. Brands can now create unique digital products and experiences that can be bought and sold online.

As you can see, investors have a reason to be interested in Shopify stock not just because of the price split but also because of the company's strong underlying fundamentals.

Shopify is a company with a lot of growth potential and a competitive advantage in the market. It is one of the largest tech companies and they are expanding into other sectors and capturing more and more of the market capitalization. If it continues on this path, Shopify may be a very successful company.

Shopify Stock Split: Is It Time to Buy?

Tired of window shopping for Shopify stock, but it's just too expensive? The 10-to-1 stock split means that now may be the time to buy SHOP if you already liked the underlying stock opportunity. The SHOP stock split is a great opportunity for investors to get in on the company at a lower price. The Shopify stock split allows for more retail investors to buy the stock since it will be more affordable.

However, Shopify is still a growth company that may face some hurdles along the way. As an investor, you should always do your own research before investing in a company. The main problem with Shopify is that it may have to increase its marketing efforts to maintain its current market share.

Nevertheless, Shopify has a strong platform that businesses can use to set up shop quickly and start selling online. If your research leads you to believe that Shopify is a good long-term investment, then the recent stock split could be a great opportunity to buy the stock at a lower price.

Conclusion

All in all, SHOP's recent stock split should not change the way investors think about the ecommerce company as an investment opportunity. Shopify's stock split made the shares more affordable and accessible to retail investors. The fundamentals of the company remain the same. Shopify is a well-run business with a bright future.

Shopify's stock split took place on June 28 and was a large one at a ratio of 10 new shares for every one share outstanding. The stock split increased the liquidity of the stock and made it easier for retail investors to buy and sell.

With about $40, you can now be a shareholder in this high-potential tech company. The post-split price will quickly adjust as the company continues to find growth opportunities.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners