Shopify, the Canadian web-design wonder firm, has announced that its stock will split 10 for one. Shopify has become legendary in a period of about seven years since it went public in 2015. It leaped to $1690 and made many investors millionaires. Since then it has fallen back. Here’s the MarketWatch post early Monday.
Shares of Shopify Inc. SHOP, -6.33% rallied 1.8% in premarket trading Monday, after the Canada-based e-commerce software company said it was planning for a 10-for-1 split of its common stock, in an effort to make its shares “more accessible to all investors.” That would be the first stock split since the company went public in May 2015. The stock closed Friday at $603.18, but has plunged 64.3% from its Nov. 19, 2021 record close of $1,690.60. Separately, the company also announced a proposal to preserve the voting power of its Founder and Chief Executive Tobi Lütke, by issuing a new class of share to Lütke. The new “Founder” shares will provide Lütke with a variable number of votes that when combined with shares already owned by him, his family and his affiliates, will represent 40% of the voting power. The proposal and the split are pending shareholder approval at the annual meeting on June 7. Shopify’s stock has tumbled 56.2% year to date through Friday, while the S&P 500 SPX, -0.27% has lost 5.8%.
