Shopify is transferring its US stock exchange listing to Nasdaq from the NYSE, with expectations that its Class A shares will cease trading on the NYSE at market close on Friday, March 28th, and commence trading on the Nasdaq on Monday, March 31st. The stock will continue to be listed under the ticker symbol “SHOP” on both the TSX and Nasdaq.
Shopify didn't provide an explicit reason for the move, but a company spokesperson told TechCrunch:
“We’re excited to join the Nasdaq community and be listed among the most innovative tech companies in the world.”
The Nasdaq is a newer exchange, founded in 1971, while the NYSE has been operating since 1792. Nasdaq differentiates itself by holding listings for most major tech stocks including Alphabet, Amazon, and Nvidia, while the NYSE is known for holding more traditional companies like Boeing, General Motors, and Walmart. Shopify originally went public on the NYSE and TSX ten years ago.
The move itself is not entirely unusual. Over 500 companies have switched their listings from the NYSE to Nasdaq since its inception, while 347 companies have transferred from Nasdaq to NYSE. The shifts are often motivated by factors such as differences in listing requirements, trading costs, and the desire for increased visibility among investors.
Last month I reported that Shopify listed its offices in New York City alongside its normally listed Ottawa headquarters for the first time in a 10-K filing. Prior to then, Shopify had been filing the 40-F form used by foreign issuers. The recent moves are fueling speculation that Shopify is planning to move its business to the US.