According to reports, on Wednesday, local time, Canadian e-commerce company Shopify split its stock, 1 share became 10 shares, and the stock price fell after the split.
A number of tech companies have split stocks this year, and splits could attract more retail investors because of the downturn in the industry. Amazon, Alphabet also split stocks, but with less than satisfactory results amid concerns that U.S. moves to curb inflation could hurt economic growth.
Shares of Shopify, which is listed in Toronto, fell 5.8% to C$42.47 on Wednesday. Shopify stock has lost 76% of its value so far this year.
The stock split still works for Shopify, at least with more interest from retail investors. “While there is no change to the stock’s fundamentals, we believe stock splits are positive in the short-term as some investors view lower-priced companies,” D.A. Davidson analyst Tom Forte said in a note. Cheaper than companies with high stock prices.”