To The Moon

Do you think Shopify's stock split will bring him out of the downturn？

After video game retailer$GameStop(GME)$ announced that it will ask shareholders to approve a pathway to a stock split at its annual meeting On March 31, 2022.

On April 11, 2022, $Shopify(SHOP)$ , The e-commerce platform's board announced plans to seek shareholder approval for a 10-for-1 stock split.

Under the proposal, Shopify shareholders of record as of the close of business on June 22, 2022, would receive 9 Class A or Class B shares for every one share held.

After the news was announced, Shopify closed at a decline of 1.91%, with the price hitting a historic low. So far in 2022, Shopify had dropped more than 50%.

SoFi is a Fintech company that aspires to be a one-stop-shop for financial services, that allows members to borrow, save, spend, invest and protect their money.

Regarding SOFI's Valuation, Please turn to My friend @ @k_ristovski 's SoFi analysis and valuation - Big story and many risks ($SOFI), which tells you how is SoFi different than a bank, and what's the key data of the company and what expectations we can focus on.

Tech Giants' Stocks Split Appear to be Well-received by Investors

Since 2022, $Alphabet(GOOG)$ , $Amazon.com(AMZN)$ , and $Tesla Motors(TSLA)$ have all announced stock split plans.

on March 28, 2022, Tesla (TSLA) asked its shareholders for permission to split its stock for the second time in two years.

On Mar 11, 2022, Amazon (AMZN) announced that approved a 20-for-1 stock split marked the fourth such split since the company first went public in 1997. Meanwhile a $10 billion 100亿 buyback plan. Amazon's stock will complete the split at the close on May 27 and begin trading on a split-adjusted basis on June 6, 2022.

On February 1, 2022, Alphabet (GOOGL) announced a 20-for-1 split, this will increase the number of the company's shareholders by 19 times. However, the plan still needs to be approved by the general meeting of shareholders. It is reported that the stock split plan will be completed on July 15, 2022.

The stock splits for the above-mentioned big tech stocks appear to be well-received by investors, and the market sees them as bullish and worth buying.

Will SOFI also usher in the same positive effect?

Stock Performances Related to Stock Splits Over the Past 2 Years

Let's take a look at the stock performance of companies that have completed stock splits over the past two years.

In the past two years, TSLA, AAPL, and NVDA have all conducted and completed stock splits, below is the share price changes of different period.

Definition and Benefits of a Stock Split.

A stock split, or "stock split," refers to the splitting of a stock of higher denomination into several stocks of relatively lower denomination.

The general motivation for companies to conduct stock splits is to reduce the stock price, attract more small investors, and increase the liquidity of stock trading. Therefore, stock splits are often seen as a direct positive factor that can drive stock prices higher.

Analysts note that stock splits don’t change anything about a company’s fundamentals. The thinking behind the move is that by expanding the number of shares at a lower individual price, more people will be able to invest in the company.

Usually the stock split has zero fundamental impact on the company, In addition, if the company buys back shares, it will also reduce the number of shares, which is expected to increase earnings per share."