Shopify Stock Split 2022: 7 Things for SHOP Stock Investors to Know About June 28

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  • Investors in Shopify (SHOP) are seeing 5% gains today.
  • This move higher occurred after the Shopify stock split was voted on and approved.
  • In addition to this split, CEO Tobias Lutke will receive a special founder share.
Shopify stock split - Shopify Stock Split 2022: 7 Things for SHOP Stock Investors to Know About June 28

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One of the hardest-hit tech stocks this year has been Shopify (NASDAQ:SHOP). Indeed, even after an impressive 5% rally this afternoon, shares of SHOP stock are still down approximately 80% from their 52-week high. That said, news that shareholders have now approved the previously-discussed Shopify stock split is clearly a catalyst driving this stock’s price action today.

Now, stock splits are cosmetic and don’t change the valuation of the company. As fellow InvestorPlace contributor Joel Baglole points out, this stock split doesn’t change the various headwinds that are plaguing this stock.

However, investors have reason to be bullish on this move. Typically, stocks that split see market-beating performance over the near- and medium-term. Some attribute this to a broader and more diverse investor base that may be “stickier.” Others suggest lower stock prices mean cheaper options, creating more demand from speculators and growth investors.

Whatever the case, this is likely to provide another point of debate among the market for an already-contentious stock. Let’s dive into a few things investors may want to know about this stock split.

What to Know About the Shopify Stock Split

  • Following this shareholder approval, Shopify is now set to split its stock after market close on June 28.
  • Accordingly, June 29 will be the first day SHOP stock will trade at its split-adjusted price.
  • This is a 10-to-one split, meaning Shopify’s price at June 28 close will be divided by 10, with investors receiving 10x the shares they previously held.
  • In addition to this stock split, CEO Tobias Lutke received a special “founder share.”
  • This founder share allows Lutke to retail 40% of the voting power at Shopify.
  • Thus, while retail investors may have become more powerful, so has the company’s management team.
  • This split follows previous high-profile stock splits from Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL).

On the date of publication, Chris MacDonald did not have (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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/shopify-stock-split-2022-7-things-for-shop-stock-investors-to-know-about-june-28/.

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