Shopify is planning a 10-for-1 stock split. While the stock is now up 3% on the day, it was down more than 1.5% shortly after the open. Despite this the action is quite little still. When Amazon announced its split, the stock was 26% below its all-time high. When Shopify announced its split it was down by 66%. The impact of a stock split is important in my view. It doesn’t fix anything or change the situation. It simply multiples the share count and divides the stock price. If growth stocks rebound soon, Shopify will too. If it remains under pressure though, we could see this one retest the lows.
What do you think? Buy or split?