No, Shopify Inc SHOP shares aren't down 90%. The stock began trading on a split-adjusted basis Wednesday.
What To Know: Shopify announced a 10-for-1 stock split in April. Shareholders of record on June 22 were eligible to receive nine additional shares for every one share held at the close of business on June 28.
Shopify said the split aims to make share ownership more accessible for all investors. Stock splits don't actually change anything fundamental about a company, but a cheaper share price can make a stock more accessible to a larger number of investors.
Why It Matters: Shopify joins a growing group of big tech companies to announce splits this year. Amazon.com Inc AMZN began trading on a split-adjusted basis at the beginning of the month and Alphabet Inc GOOG is set to split its stock in mid-July.
In 2020, Apple Inc AAPL announced a 4-for-1 split and Tesla Inc TSLA put forth a 5-for-1 split. Shares of Apple and Tesla have appreciated significantly since the splits went into effect.
Increased investor interest would be a welcome sign for Shopify, as the e-commerce platform company's stock has fallen more than 75% year-to-date.
SHOP Price Action: On a split-adjusted basis, Shopify has traded between $176.29 and $29.76 over a 52-week period.
The stock was down 3.44% at $33.82 at the time of publication.
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