After benefiting from years of outsize gains, many companies have turned to stock splits to make shares appear more affordable. Stock splits do not directly add to shareholder wealth. This increased interest could give an added boost to Amazon (NASDAQ: AMZN), DexCom (NASDAQ: DXCM), and Shopify (NYSE: SHOP).
Tech stock laggard Shopify is running low on ideas. In recent weeks the Canadian ecommerce company has split its stock, extended a tie-up with buy now, pay later company Affirm, pushed into business-to-business sales and partnered with Twitter to launch a new sales channel. In the first quarter of 2022, US online sales topped $231bn, according to Department of Commerce data.
Fears over a recession caused these consumer discretionary names to fall hard on Wednesday despite Shopify's stock split.