Down 81% From Its High, Could Shopify Stock Soar After Its Stock Split?
Shopify (NYSE: SHOP) received approval for a 10-for-1 stock split at its annual meeting in early June. Shareholders also voted to issue CEO Tobias Lütke one "founder" share, a measure that effectively gives him 40% voting power for as long as he runs the company. The stock split will go into effect on June 28, and the stock will begin trading on a split-adjusted basis on June 29.
On that day, Shopify shareholders will receive nine additional shares for every one share they already own. But the value of each share will be one-tenth of its pre-split value, meaning a shareholder's stake in the company does not change. Even so, a lower share price makes the stock accessible to more investors, and that sometimes leads to a post-split pop. With Shopify trading 81% off its high, a rebound would be a welcome relief.
Should shareholders bank on that outcome? Let's dive in.
Source Fool.com
