Which one would you choose
The total value of the shares held by investors won't change in value as a result of the stock split. One share of $Shopify (SHOP.US)$ stock priced at $600 is worth the same as 10 shares worth $60 (10 x $60 = $600). To use the pizza analogy, it doesn't matter how many slices you cut a pizza into, you still have the same amount of pie to eat. Similarly, Shopify stockholders will simply have a greater number of lower-priced shares.
Consequently, a pending stock split alone is no reason to buy stock. Rather, it's the strength of the underlying business and the potential for future share price gains that should be the major consideration when deciding whether or not to invest in a company -- and there are plenty of reasons to be bullish on Shopify.
Shopify shares have taken it on the chin recently, with the stock down 64% off highs reached late last year. The decline was fueled by the recent correction in tech stocks and fears of slowing e-commerce growth. Yet even after record adoption last year, global e-commerce sales are expected to grow 13% to $5.5 trillion in 2022, surging to $7.4 trillion by 2025. $Amazon (AMZN.US)$ $Tesla (TSLA.US)$ $Alphabet-A (GOOGL.US)$
This represents a large and growing opportunity for Shopify and that, combined with its industry-leading position, is a compelling argument to own shares.
Consequently, a pending stock split alone is no reason to buy stock. Rather, it's the strength of the underlying business and the potential for future share price gains that should be the major consideration when deciding whether or not to invest in a company -- and there are plenty of reasons to be bullish on Shopify.
Shopify shares have taken it on the chin recently, with the stock down 64% off highs reached late last year. The decline was fueled by the recent correction in tech stocks and fears of slowing e-commerce growth. Yet even after record adoption last year, global e-commerce sales are expected to grow 13% to $5.5 trillion in 2022, surging to $7.4 trillion by 2025. $Amazon (AMZN.US)$ $Tesla (TSLA.US)$ $Alphabet-A (GOOGL.US)$
This represents a large and growing opportunity for Shopify and that, combined with its industry-leading position, is a compelling argument to own shares.
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