Should You Buy Shopify Stock After the Split?
Shopify (NYSE: SHOP) has been getting a lot of attention lately after completing its 10-for-1 stock split on Wednesday, June 29. The e-commerce enabler thrived at the pandemic's onset as it helped thousands of businesses establish an online presence when brick-and-mortar shopping was crippled.
Still, the company was demonstrating remarkable growth even before the outbreak. Let's consider what the stock split means for investors and then determine if the stock is a buy right now.
Significantly, when a company splits its stock, it doesn't change ownership percentages. If you owned 5% of the business before the 10-for-1 stock split, you would own 5% after the split. What a split does accomplish is to make each share of the stock more affordable to buy. Shopify is now trading at a price per share in the $30 range. Before the split, it was trading at over $300 per share.
Source Fool.com
