Shopify Split Explained: Dates, History, and Future Outlook 

Shopify Inc. operates as the leading e-commerce platform with a dominant market position and a fast-growing business model in online retail. 

Since its IPO in 2015, Shopify has provided its shareholders with tremendous market returns, making it among the most valuable technology companies globally. 

It also became difficult for many investors to buy entire stocks from Shopify due to a constantly rising stock price, particularly among retail investors. 

A 10-for-1 stock split carried out on June 29, 2022, brought the company’s shares into more use and opened it to market trends it should pursue. Reports suggest that the e-commerce retail sales market is set to surpass $7 billion by 2025. 

This article discusses the basic concept of stock splitting while providing insight into Shopify’s past splits. It analyzes the reasons for the splits and their impact on Shopify investors before considering possible future splits and the prevailing stock market trends. 

What is a Stock Split? 

Stock splits can be categorized as a corporate action that increases the number of shares in circulation of the company’s shares while at the same time improving the stability of the stock’s market value. 

This ensures that the changes in the figure observed after the stock price reduction bear a proportional value to the whole market capitalisation value. 

In a 2-for-1 stock split, a shareholder with a share worth $100 would own two shares, each valued at $50. Obtaining share numbers does not increase the overall worth of the investment. 

Shopify’s Stock Split History 

Shopify began its journey as a public limited company in the fiscal year 2015-2016, and from that point, it has become one of the most competitive companies in the e-commerce sector. 

Its stock has consistently been on the rise over the years, and many expected the company to announce the planned stock split like its counterparts, Amazon, Apple, and Google, which have always done so. Still, Shopify did not perform a stock split before the end of June 2022. It was the only stock split the company carried out in its share history. 

How did the 10-for-1 Stock Split work? 

• Before the split, the shares of this company were valued at more than $300 per share. 

• The price per share declined to around $30 after the 10-for-1 stock split in early 2006. 

The total value of investment remained unchanged regardless of the increased number of shares. 

Scenario	Before the Stock Split	After 10-for-1 Stock Split
Shares Owned	10 shares	100 shares
Price per Share	$300	$30
Total Investment Value	$3,000	$3,000

Why Did Shopify Execute a Stock Split? 

1. Enhancing Share Accessibility 

Shopify’s stock was above $300 per share, which was a significant amount for most investors to afford. The people took a stock split in 1987, which made the price about $30 per share, and saw increased trading by the small investors. 

2. Increasing Liquidity 

A lower share price means increased trading activity, which enhances the market’s liquidity. This allows investors to buy and sell shares without significantly influencing the share’s price. 

3. Aligning with Market Trends 

Other leading tech corporations, such as Amazon, Alphabet (Google), and Apple, also conducted stock splits in the same year. This was done to keep the firm’s stock price within the range of what was obtainable in the industry. 

Impact of Shopify’s Stock Split on Investors 

A stock split means a change in the stock’s face value but not its value or the company’s market capitalization; it is different and affects investors. 

1. Increased Affordability for Retail Investors 

Shopify’s stock was over $300 per share, making it relatively costly to the ordinary retail investor. Subsequently, the share became priced at about $30 after receiving a 10:1 stock split. 

It allowed more persons with common stock to purchase the shares, thereby boosting the general public’s ownership of Shopify’s equity. 

2. Higher Trading Volumes and Liquidity 

Stock prices that remain lower in the market lead to more excellent trading activity. Liquidity decreases the costs of transactions and enables investors to effect a trade of shares without unduly disturbing the price of a share. 

3. Psychological Impact on Investors 

Stock splits bring positive implications to the junction since they are regarded chiefly as positive indications of the company from the investors’ perspective. 

A stock with a lower price tag is considered to have the potential to move up more than one with a higher price tag, but is the stock’s value not the same in the market? 

This could propel the demand and even establish a rallying factor that increases stock prices. 

4. Dividend Adjustments (If Applicable) 

If the Shopify agency decided to declare dividends, the figure would decline after the split exercise per each share of stock. However, since the firm does not pay dividends, this element did not impact Shopify’s shareholders. 

Will Shopify Split Its Stock Again in the Future? 

As mentioned earlier, Shopify has not split its stock as of the filing of this report in April 2025. Instead, if the following conditions occur, it is possible to experience future splits: 

• The price of one share of Shopify has increased again, putting it out of the easy reach of retail investors again. 

• The company’s dynamics are directed towards providing additional boosts to the market’s liquidity and participation. 

• Other big technology firms have developed the concept of stock splits, which, in this case, led to Shopify’s emulation. 

Regarding the investigation into Shopify Inc., investors should always check their earnings statements and investor relations information periodically to ascertain the current and future standings of the Shopify stock. 

Conclusion 

Shopify’s split strategy affected shareholders by making the company’s shares more affordable and liquid while enhancing founder control.  

The findings suggest that stock splits do not alter the firm’s value, but they do affect investors and the stock market’s behavior. Working with an experienced Shopify development company is essential for businesses that seek to promote their store on a robust platform like Shopify.  

CartCoders is recognized as a professional Shopify development company that offers development and optimization services for the store. CartCoders provides professional services at the highest level, whether it is a custom Shopify store, app integration, or website/store performance optimization. Contact us today and get top-notch Shopify development services for your business.