when is shopify going to split

hey what's going on youtube and welcome,back to tech conversations i am host,guillermo it is june 26th hope you are,having a great weekend so far before i,get into today's video all i ask is do,you guys hit the like button down below,and subscribe guys it really helps with,the channel and check out the discord,link to it in the description below over,90 000 members completely free to join,you can also become a premium member on,here for seven dollars a month you'll,get access to a bunch of great resources,one of them is our alerts here's an,example of an alert from last week this,was a call option on lyft we paid 131 we,sold for 205 so we made a 74 profit per,contract on this alert so check out the,discord the link to it in the,description below now in today's video i,want to talk about the shopify stock,split which is finally about to happen,so i'm going to go through everything,that you need to know about this stock,split so let's just get right into this,video guys let's head on over to shopify,stock so this is going to be ticker,symbol,s-h-o-p,shopify so let's click on shopify here,and shopify is currently at 386 dollars,and 50 cents a share if we like if we,take a look in the last year shopify has,not had a very good year right so,shopify,is actually down 78,from its 52-week high of 1,762,a share and it has an average analyst,price target of 510 dollars a share so,according to the analyst they still see,32,upside from its current level,now shopify for those of you that are,not familiar with this company is a,leading global commerce company,providing trusted tools to start grow,market and manage a retail business of,any size so shopify powers millions of,businesses in more than 175,countries so what i'm going to do here,let's first start by taking a look at,the stock split history for shopify so,remember we can always go to stock split,history.com and take a look at the stock,split history for any stock so when it,comes to shopify it has never had a,stock split before okay so this is going,to be its very first stock split guys,now just kind of one fun fact here back,if you would have purchased this on,may 21st 2015 if you would have,purchased uh let's say ten thousand,dollars today you would have about a,hundred fifty thousand dollars and at,the peak you would have had almost you,know six hundred fifty thousand dollars,so shopify has had some pretty great,returns over the past couple of years,but anyways let's take a look here at,the stock split details now so let's,take a look at this article,so a couple of things number one why is,shopify splitting its stocks remember,stock splits can have some benefits for,investors the main reason companies do,it is to lower the share price by making,more shares available and thus making,the stock more attractive and accessible,to new retail investors so what does,that mean that means that right now if,you wanted to purchase one share of,shopify you would have to pay about 386,dollars per share if you're a smaller,account that may be a lot of money right,that might be a huge percentage of your,portfolio well after the stock split,each share of shopify will only be,one-tenth the price so again it'll be,more affordable to a lot more people,now it also has other benefits for,example if you wanted to sell options on,shopify right now you would need around,38 000,after the stock split you're only going,to need around,800,so it's going to be a lot more,affordable to sell options even buying,options right but to buy an option on,shopify it's going to be a lot cheaper,now so a lot of different benefits here,that's why they have the stock splits,now let's take a look here at the stock,split details so the stock split is,going to be a 10 to 1 split and so the,way you read this is for every one share,you own,you will now have 10 shares after the,stock split so if you have 10 shares,right now after the stock split you will,now have 100 shares enough to start,selling covered calls,now that also means that the share price,is going to drop by one tenth right so,that means again that if shopify is,around this price right uh 386 dollars,after it's split,after it splits each share will be,cents a 38.65 so again a lot more,affordable to more investors now you,only need 38 dollars to be able to,purchase one share rather than,386 dollars okay so let's take a look,here at a couple of other things so the,other thing to mention here is that,they also boosted the ceo's voting stake,to 40 percent uh by issuing new uh a new,class of shares right and they actually,talk about that here they call it the,founder share,but more importantly the uh the dates,the important dates here okay and i want,to talk about this so shopify says,shareholders of record as of june 22,will receive 9 additional shares for,every share they own after market close,on june 28th so on wednesday june 29th,shop will begin trading at its new split,adjusted price so wednesday is when you,can expect the price of shopify to be,one-tenth this uh the share price right,now that's when you're gonna get your,additional nine shares for every one,share you're holding uh and so there's,the important date so again it's,basically almost here right on wednesday,uh this will be trading at a lot lower,price now,now one question that i get all the time,is notice that the record date was june,22 right so what happens if you purchase,after june 22nd and before the stock,split do you still receive the,additional shares yes okay the only,difference is if you hold shopify buy,the record date right what happens is,the company itself shopify will give you,those nine additional shares for every,share you hold now if you purchase after,the record date and before the stock,split date the you're actually going to,be getting your shares from whoever sold,you their shares okay you're not gonna,be getting them from shopify you're,gonna be getting them from the person,that sold you their shares that's the,only difference but yes you'll still,get the nine additional shares even if,you purchase you know tomorrow or,tuesday okay so just wanted to point,that out there i did get a lot of,questions on that this week or last week,uh now what's going to happen to the,options that's the next thing i want to,talk about here because again this is a,question i get all the time as well so,the options are going to follow pretty,much the same pattern as the stock split,so let me actually show you one example,here,so let's say,you,bought a call expiring july 1st which is,this friday let's say you bought the,call at the 400 strike so what's going,to happen if you hold through the stock,split if you hold until wednesday so,again very similar to the stock split,itself what's going to happen is let's,say i bought one call option,on wednesday if you're still holding,you're now going to have 10 call options,okay you're going to have 10 call,options rather than one call option,now the strike price is also going to be,divided by 10 right which is the stock,ratio so you're going to have 10 call,options each option would have a strike,price 1 10 of what it is right now,meaning that the strike price of your,options would have a 40 strike so you,would have ten call options,with a strike of forty dollars each and,also the share or the the options price,right which is thirteen ninety right,around there will also be divided by one,tenth right so you'll have ten call,options each with a strike of forty,dollars and each worth one tenth of the,original option so each one would be,worth 139 rather than thirteen ninety so,that's what happens to the options if,you hold through the stock split now,what can we expect to see from the stock,split from now until the stock split and,then after the stock split okay so,shopify has made a pretty big run in the,last uh week even the last month right,so as you can see it was down at 300,and now it has rallied up to around 386,so it's up a ton,in just a short period of time and so,what we can do here is we can try to,compare it to for example amazon right,and what amazon did after stocks but,because amazon just recently had its,stocks but so we take a look at amazon,here,and what it did prior to its stock split,and then after its stock split amazon,stock split was on on uh june 6th right,and so you can see what happened before,june 6 is that it made a pretty big run,from a hundred dollars to about a,hundred twenty,so it ran up almost 25,after its stock split what happened it,dropped back down right and so,potentially you might see the same thing,with shopify where shopify is making its,huge run up right now,up into earnings right as you can see,again or up until the stock split from,300 you know right now it's at 386 and,potentially see it fall after right,but you should definitely expect a lot,of volatility going forward in these,next couple of days so let's take a look,here at the one day chart for shopify,let's go over the trading view here and,let's just see what we can see here so,we see that there is a pretty big level,of resistance around this area between,395 and 403 so basically resistance is,where a lot of selling starts to happen,right a lot of,traders are going to be looking at,around this level and seeing how shopify,reacts because if we take a look in the,past what has it done in the past around,this area right here it got to this area,it bounced back down then it got back to,that area bounced back down got back to,that area bounced back down same thing,over here got to that area bounced off,over here same thing hit that area,bounced off hit that area bounced off so,we could potentially be seen shopify,make a move back up to around this area,again between around 395 and 403 so it,could potentially run up to there uh,prior to its stock split,if it you know again if it doesn't break,this level of resistance we could,potentially see it bounce or fall back,down like it has in these other,occasions here and so down here we have,a pretty big level of support,uh at around you know the 3 to 3 10,level uh and so you can see here it,bounced off and then it hit it again,over here bounced off multiple times it,didn't break it uh and so again uh what,you want to be looking for is this area,on the upside looking to hit it and,potentially you know either bounce off,or break it to get some more upside here,okay so anyways that is the shopify,stock split again it is happening here,wednesday you will see it with a new,share price a lot lower than what it's,currently at so anyways guys if you have,any questions about anything i just,talked about feel free to leave them in,the comment section below check out the,discord a link to it in the description,below hope you enjoyed the video let me,know what you guys think and i will see,you guys next time

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