Forget Stock Splits: 3 Other Reasons to Buy Shopify Now

After both Amazon and Alphabet announced stock splits earlier this year, other companies splitting their shares have been generating lots of hype. That being said, stock splits don't change anything fundamentally for a business. A share of a company represents a piece of the pie, so to speak. Therefore, a stock split is simply creating more slices of the pie by cutting up each piece into smaller ones.

Canadian e-commerce company Shopify (NYSE: SHOP) wants to get in on the action, announcing that it will ask shareholders to vote on a 10-for-1 split. By doing this, Shopify would create a third class of shares for its CEO and founder Tobi Lütke, giving him more voting power and authority over the company.

Many investors might be considering an investment in Shopify because of the potential stock split, but they should focus on the fundamentals of the business rather than this news. The fundamentals, however, are strong, which is why Shopify may be a good buy today, whether it splits its shares or not.

Source Fool.com