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.
Should you buy Shopify stock split in 2021?
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.
Can you buy shares in Shopify after the IPO?
However, this is a simplified example and assumes that you were able to buy shares in the IPO and not on the public market, which isn’t always a possibility. When Shopify started to trade on its IPO date of May 21, 2015, its market price had already soared to $28 per share.
How has Shopify grown tenfold since its IPO?
E-commerce platform Shopify ( NYSE: SHOP) has come a long way since its 2015 IPO. The company has gone from about 162,000 merchants on its platform to more than a million. Even more impressively, Shopify’s revenue has grown more than tenfold since it went public less than five years ago.
The most common answer is; in February 2014, Shopify released “Shopify Plus” for large e-commerce businesses with access to additional features and support. On April 14, 2015, Shopify filed for an initial public offering (IPO) on the New York Stock Exchange and Toronto Stock Exchange under the symbols “SHOP” and “SH” respectively.
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.
When was shopify ipo?
Shopify’s IPO took place on May 21, 2015, on the TSX and NYSE. After a wild day of trading, the stock closed at $31.25. Assuming you had been able to commit your $1,000 at that close price, you would have been able to purchase 32 shares.
Was Shopify’s IPO the most explosive in TSX history?
The initial public offering (IPO) and the first day of trading on May 21, 2015, will be known as as the most explosive IPO in the record books of the TSX. All eyes were glued on Shopify as it opened a new chapter in its existence.
Why is Shopify’s share price volatile?
Over the past year, Shopify shares have seen more volatility. Comments from short-selling specialist Andrew Left at Citron Research hit the stock for a 20% loop, with allegations of questionable tactics among affiliates signing up new clients for the e-commerce service.