Dear SHOP Stock fans, mark your calendars for June 22
In another week for the summer of stock splits, Shopify (NYSE:STORE) is the next to split its shares. Investors who want to take advantage of the company’s 10-to-1 stock split have until the market closes on June 22 to buy SHOP shares. They will receive nine shares in addition to each share they hold on June 28.
Today, SHOP’s stock is steadily rising after a turbulent week. Shopify has struggled since reporting lower than expected second quarter results may’s beginning. This volatility led a team of Wells Fargo analysts to issue a very bearish case against the stock. With the split rapidly approaching, however, stocks have found new momentum.
As of this writing, Shopify is up 4% for the day. This shock pushed him into the green of more than 8% for five days. As the stock split approaches, stocks will likely continue to rise.
What’s going on with SHOP Stock?
There’s no doubt that 2022 has been tough for Shopify. The company belongs to a group of names that benefited from the Covid-19 lockdowns in 2020. As the world returned to shopping and working in person, Shopify faced similar challenges to Zoom (NYSE:ZM) and Platoon (NASDAQ:PTON).
For all business challenges, however, not everyone is sour on stocks. Cathy Wood purchased 100,642 shares in April through its flagship ARK Innovation ETF (NYSEARC:ARKK). Also bullish on ZM stocks, Wood clearly sees potential in SHOP stocks.
Cathie Wood will likely benefit from Shopify’s stock split, as will other investors. It’s easy to be bearish on a stock when it’s been through so much. However, the recent dips could actually be an opportunity to buy the dip. InvestorPlace Contributor Nicolas Chahine recently called SHOP a “big deal”.
As the stock split approaches, stocks present a tempting opportunity for investors.
The basics of Shopify
When the bearish energy is as strong as it is these days, it’s hard to be optimistic about high-growth tech stocks. However, investors should focus on the big picture when it comes to Shopify. With the upcoming split, stocks are likely to build momentum. In fact, SHOP stock is already benefiting from renewed investor interest.
Looking ahead, investors should also remember that Wood appears to believe SHOP shares will be a future winner. The bear market won’t last forever, and Shopify is working to turn the tide. The upcoming split is an opportunity for investors to take advantage before Shopify changes course.
At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.