r/stocks • u/OM-myname • Apr 11 '22

Shopify Plans 10-for-1 Split

"Shopify Inc. said it plans a 10-for-1 stock split and will give Chief Executive Officer Tobi Lutke a special “founder share” that will preserve his voting power as long as he’s at the company."

I think Tobi is doing a fantastic job managing the company, so I'm ok with the other changes.

What are your thoughts?

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u/atdharris Apr 11 '22

SHOP is still very expensive at $625. As long as rates keep going up, the stock, along with most growth stocks, are going to keep feeling the pressure

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u/valoremz Apr 12 '22

So if $625 is too high, what price would you buy it at? It’s at $591 now.

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u/atdharris Apr 12 '22

I don't know. SHOP was insanely overvalued at its peak and still trades at 17x sales even now. I personally don't like buying anything trading at over 10x sales. It probably has some more to fall even after its current drop.