Shopify (STORE 5.58%) is one step closer to the finish line of its highly publicized stock split. At the annual and special meeting of shareholders held on June 7, shareholders approved the measure, paving the way for its 10-to-1 stock split to take place later this month.

Let’s take a look at some key dates shareholders should know and review the evidence available to decide if Shopify stock is a buy.

Mark your calendar

Shopify’s regulatory filing provided several key dates for investors to add to their calendars.

The first date was the annual meeting which took place on June 7, when shareholders voted on the stock split, as well as various other measures. These included the election of the company’s board of directors and the approval of its auditor. Shareholders also considered an overhaul of Shopify’s governance structure, ultimately approving a 10-for-1 stock split and creation of a founder’s share, which will see CEO Tobi Lütke control 40% of total shareholder rights. company vote in the future. maintain the level of control he has now.

The second key date provided by Shopify management is the so-called “registration date”. Every shareholder of record at the close of business on June 22 will be eligible to participate in the next stock split, receiving nine additional shares for each share they hold.

The third key date is the distribution date. After market close on Tuesday, June 28, each shareholder will receive the newly created shares. This officially happens after the market closes and the additional shares will automatically be deposited into shareholders’ brokerage accounts. If you’re already a Shopify shareholder, you don’t have to do anything else to receive your additional shares. However, it is important to note that there may be a lag time which varies from brokerage to brokerage, so it may take a day or two for the additional shares to appear in your account.

Finally, Wednesday, June 29 is when Shopify will begin trading at its post-split price. Investors should expect the shares to trade at around a tenth of the price before the split.

But is the action a buy?

There’s no doubt that Shopify has become synonymous with digital retail, and early investors have been treated to stunning returns, with the stock rising more than 1,300% since its IPO in 2015, even in the face of its recent decline. Still, with the stock split on the horizon, investors are wondering if Shopify stock is a buy.

In the wake of the accelerated adoption of e-commerce that has accompanied the pandemic, Shopify’s growth appears to have slowed, but it’s important to put its recent results in context. In the first quarter, total revenue was only up 22% year over year, but that’s on top of revenue growth of 110% in the prior year quarter. At the same time, gross merchandise volume (GMV) increased 16%, but that was also the result of tough competition, with GMV climbing 114% in the prior year quarter. Over the next two quarters, comps should normalize, giving way to more historic growth rates to resume.

Additionally, Shopify stock has been caught in the recent correction and tech-centric bear market. Many stocks with frothy valuations were punished when the market fell, and Shopify was no exception, with stocks down more than 75% from their November high. This pushed Shopify’s price-to-sales (P/S) ratio below 10, its lowest level since the start of 2017. A year from now, its valuation is even more compelling, with a forward P/S ratio of about 6.

Finally, while online sales growth has slowed somewhat from the blistering pace of the past two years, digital retail is not stopping. Global e-commerce sales reached approximately $4.9 trillion in 2021 and are expected to soar to nearly $7.4 trillion by 2025. As the leading provider of e-commerce services for merchants, Shopify is well positioned to benefit from this ongoing secular trend.

Given its dominant position in the industry, strong growth — even in the face of tough competition — and historically low valuation, Shopify stock is undeniably a buy before its stock split.