4 ms·

Although they have a 20 to 1 split coming up in July.

airstrike 4y ago
Which has virtually zero impact on anything at all whatsoever other than making it affordable to retail investors, which also has zero impact on anything other than black swan meme stocks
- colechristensen 4y ago
  Fractional shares are a pretty widespread feature at brokerages these days making it even less of an issue. Perhaps it increases the liquidity of their options market though.
  - hamburglar 4y ago
    A high share price has a large impact on who is able to trade options.
- tylerhou 4y ago
  It also helps employees' vesting schedules by smoothing them out.
  - deleted 4y ago
    [deleted]
  - saagarjha 4y ago
    How so? Most vests are substantially more than a single share.
    - tylerhou 4y ago
      Not so on refreshers for lower level employees. $70k-$100k over 4 years amounts to barely one share a month at current GOOG prices. Add in tax withholding and it’s about half a share. So they generally vest quarterly instead of monthly. After this split they can vest monthly.
- sbf501 4y ago
  That's not true. It has an impact on options re-pricing after the split occurs. I don't pretend to understand it, so don't ask for more details, but options traders love splits, apparently (at least the traders I know).
  - ShivShankaran 4y ago
    I trade options and I love it when share price is above $1000. The flurry of stock splits for major tech shares is just a way for institutions to offload their stock to retail investors. JPM and their clown gang has been screaming "buy the dip" non stop since Jan. here is motley fool and seeking alpha screaming to buy shopify at $1300. https://www.fool.ca/2022/01/15/shopify-tsxshop-why-i-finally-bought-the-dip/ https://www.fool.ca/2022/01/15/shopify-tsxshop-why-i-finally... https://seekingalpha.com/article/4478545-shopify-shop-bastion-amid-chaos-at-price https://seekingalpha.com/article/4478545-shopify-shop-bastio... Shopify is around $300 now and on the way to around $100
    - mschuster91 4y ago
      > JPM and their clown gang has been screaming "buy the dip" non stop since Jan. Well... long-term (=20-30 years) "buying the dip" is the one true way to make outlandish profits (other than gambling with options), the thing is you have to be financially able and psychologically strong enough to not sell on the inevitable downturns - and you need to spread your purchases. Retail investors should stay the fuck out of single stocks or narrow-scope indices, at least with money they cannot afford to lose.
      - ShivShankaran 4y ago
        there is absolutely no way in hell SHOP is going back to $1300. Or even COIN or any of the other tech will return to their heights. AMZN, GOOG might return probably in other 10 years. There is the saying "don't catch a falling knife" for a reason. It's illogical to plough money into stock market when QT has hit, inflation is soaring and a recession is all but guaranteed.
- joshspankit 4y ago
  There’s also a non-trivial amount of stock price that’s based on “psychologically round” numbers. If a stock is 399 some traders may see it as a deal and buy simply because it’s below the “round” number of $400. Splitting changes the relative landscape of what numbers are “round”.
  - sbf501 4y ago
    I bet it is literally phonetically easier for traders on the NYSE floor to shout round number rather than "Selling amazon at 978.23!!!" At some point the number of significant figures slows down your transaction speed, as a human, that is.

Which has virtually zero impact on anything at all whatsoever other than making it affordable to retail investors, which also has zero impact on anything other than black swan meme stocks

colechristensen 4y ago
Fractional shares are a pretty widespread feature at brokerages these days making it even less of an issue. Perhaps it increases the liquidity of their options market though.
- hamburglar 4y ago
  A high share price has a large impact on who is able to trade options.
tylerhou 4y ago
It also helps employees' vesting schedules by smoothing them out.
- deleted 4y ago
  [deleted]
- saagarjha 4y ago
  How so? Most vests are substantially more than a single share.
  - tylerhou 4y ago
    Not so on refreshers for lower level employees. $70k-$100k over 4 years amounts to barely one share a month at current GOOG prices. Add in tax withholding and it’s about half a share. So they generally vest quarterly instead of monthly. After this split they can vest monthly.
sbf501 4y ago
That's not true. It has an impact on options re-pricing after the split occurs. I don't pretend to understand it, so don't ask for more details, but options traders love splits, apparently (at least the traders I know).
- ShivShankaran 4y ago
  I trade options and I love it when share price is above $1000. The flurry of stock splits for major tech shares is just a way for institutions to offload their stock to retail investors. JPM and their clown gang has been screaming "buy the dip" non stop since Jan. here is motley fool and seeking alpha screaming to buy shopify at $1300. https://www.fool.ca/2022/01/15/shopify-tsxshop-why-i-finally-bought-the-dip/ https://www.fool.ca/2022/01/15/shopify-tsxshop-why-i-finally... https://seekingalpha.com/article/4478545-shopify-shop-bastion-amid-chaos-at-price https://seekingalpha.com/article/4478545-shopify-shop-bastio... Shopify is around $300 now and on the way to around $100
  - mschuster91 4y ago
    > JPM and their clown gang has been screaming "buy the dip" non stop since Jan. Well... long-term (=20-30 years) "buying the dip" is the one true way to make outlandish profits (other than gambling with options), the thing is you have to be financially able and psychologically strong enough to not sell on the inevitable downturns - and you need to spread your purchases. Retail investors should stay the fuck out of single stocks or narrow-scope indices, at least with money they cannot afford to lose.
    - ShivShankaran 4y ago
      there is absolutely no way in hell SHOP is going back to $1300. Or even COIN or any of the other tech will return to their heights. AMZN, GOOG might return probably in other 10 years. There is the saying "don't catch a falling knife" for a reason. It's illogical to plough money into stock market when QT has hit, inflation is soaring and a recession is all but guaranteed.
joshspankit 4y ago
There’s also a non-trivial amount of stock price that’s based on “psychologically round” numbers. If a stock is 399 some traders may see it as a deal and buy simply because it’s below the “round” number of $400. Splitting changes the relative landscape of what numbers are “round”.
- sbf501 4y ago
  I bet it is literally phonetically easier for traders on the NYSE floor to shout round number rather than "Selling amazon at 978.23!!!" At some point the number of significant figures slows down your transaction speed, as a human, that is.