Shopify Stock Begins Trading on a Split-Adjusted Basis: What You Need to Know
Nope, Shopify Inc. STORE stocks are not down 90%. The stock began trading Wednesday on an allocation-adjusted basis.
What there is to know: Shopify announced a 10-for-1 stock split in April. Shareholders of record on June 22 could receive nine additional shares for each share held at the close of business on June 28.
Shopify said the split aims to make stock ownership more accessible to all investors. Stock splits don’t actually change anything fundamental about a company, but a cheaper stock price can make a stock more accessible to more investors.
Why is this important: Shopify joins a growing group of big tech companies to announce splits this year. Amazon.com Inc. AMZN began trading on an allocation-adjusted basis at the start of the month and Alphabet Inc. GOOG is expected to split its shares in mid-July.
In 2020, Apple Inc. AAPL announced a 4-for-1 split and Tesla Inc. TSLA propose a 5-to-1 split. Shares of Apple and Tesla have appreciated significantly since the splits took effect.
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Increased investor interest would be a welcome sign for Shopify, as shares of the e-commerce platform company have fallen more than 75% year-to-date.
SHOP Price Action: On a breakdown-adjusted basis, Shopify traded between $176.29 and $29.76 over a 52-week period.
The stock was down 3.44% at $33.82 at press time.
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