In another week for the summer of stock splits, Shopify (NYSE:SHOP) is next in line to split its stock. Investors who want to benefit from the company’s 10-for-1 stock split have until market close on June 22 to purchase SHOP stock. They will receive nine shares on top of each share they own on June 28.
Today, SHOP stock is rising steadily after a turbulent week. Shopify has struggled since reporting weaker-than-expected second-quarter earnings in early May. This volatility led a team of analysts at Wells Fargo to issue a highly bearish case against the stock. With the split quickly approaching, however, shares have found new momentum.
As of this writing, Shopify is up 4% for the day. This jolt has pushed it into the green by more than 8% for the past five days. As the stock split nears, shares will likely keep rising.
What’s Happening with SHOP Stock?
There’s no question that 2022 has been difficult for Shopify. The company belongs to a group of names that benefitted from the Covid-19 lockdowns in 2020. As the world has transitioned back to in-person shopping and working, Shopify has faced challenges similar to Zoom (NYSE:ZM) and Peloton (NASDAQ:PTON).
For all of the company’s challenges, though, not everyone is sour on shares. Cathie Wood purchased 100,642 shares in April through her flagship ARK Innovation ETF (NYSEARCA:ARKK). Also bullish on ZM stock, Wood clearly sees potential in SHOP stock.
Cathie Wood will likely benefit from the Shopify stock split, as will other investors. It’s easy to be bearish on a stock when it has struggled so much. However, the recent declines could actually be a buy-the-dip opportunity. InvestorPlace contributor Nicolas Chahine recently called SHOP a “big bargain.”
As the stock split looms, shares represent a tempting opportunity for investors.
The Bottom Line on Shopify
When bearish energy is as strong as it is these days, its hard to be optimistic about high-growth tech stocks. However, investors should be focused on the bigger picture when it comes to Shopify. With the split coming soon, shares will likely generate momentum. In fact, SHOP stock is already benefitting from renewed investor interest.
Looking forward, investors should also remember that Wood seems to believe SHOP stock will be a future winner. The bear market won’t last forever and Shopify is working to turn things around. The upcoming split is an opportunity for investors to benefit before Shopify reverses course.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.