In its short history as a publicly traded company, Shopify has never done a stock split. In large part, much of the reasoning behind Shopify’s decision might well come from the simple fact that it hasn’t been public all that long.
To come up with a rationale for why a particular company might split its stock in the future, the first thing to do is look at its past practices. In its short history as a publicly traded company, Shopify has never done a stock split.
Stock split history for Shopify since 2022. Prices shown are actual historical values and are not adjusted for either splits or dividends. Please see the “Historical Prices” tab for adjusted price values. Shopify Inc. offers cloud-based commerce platform.
Here is what my research found. with big U. Tech firms splitting their shares, it seems like only a matter of time until Shopify Inc (TSX: SHOP) (NYSE: SHOP) does the same. In the past few weeks, stock splits have been all the rage, with major tech companies like Apple and Telsa splitting their shares.
The company notes that 45,800 of its partners referred a merchant to the platform over the trailing 12 months, ended March 2021, which is up 73% from the previous year. Shopify has minimal e-commerce growth headwinds, and a stock split could allow smaller players to take part in its epic run higher.
These investors’ average account size is only $1,000 to $5,000. If SHOP split its shares, it may get some momentum going from these small-time investors buying in. Generally, companies split their shares to increase their marketability and liquidity. When a stock is overly expensive it leaves a lot of smaller investors out.
Did shop stock split in 2020?
SHOP has never before split its stock, but 2020 also marked the first time that the stock traded above $400 per share.
Is Shopify’s (shop) stock a buy at $703?
Shopify (SHOP) has surprised investors with how far it has fallen. The market correction that began in November 2021 has led SHOP stock to drop 63% from its all-time high. With the further drop on Thursday, February 17, SHOP broke through the significant $703 level.
Shopify (TSX: SHOP) (NYSE: SHOP) is a magical stock. Since 2015, shares have risen 33 times in value. A $10,000 investment would have become $330,000 in just five years. The best part is that the fun isn’t over. There’s a good chance that this stock will double again 2021.
How did Shopify do so well since its IPO?
One reflection of just how well Shopify has done is the path of its stock price. The company initially expected to price its shares in its IPO at between $12 and $14 per share, but strong demand eventually led Shopify to boost that price to $17.