Shopify (SHOP) Stock Drops on Lockup Expiration

Shares of Shopify (SHOP) are declining in late morning trading on Monday, as the company's stock lockup ends today.
By Amanda Albright ,

NEW YORK (TheStreet) --Shares of Shopify  (SHOP) - Get Report  are falling by 1.83% to $26.85 on heavy volume in late morning trading on Tuesday, as investors sell off their stakes in the company ahead of its stock lockup. 

The stock lockup for the cloud-based commerce platform, which went public earlier this year, ends today, Bloomberg reported.

By restricting early investors' ability to sell their shares, stock lockups intend to stabilize the stock price of companies that have recently gone public, according to Bloomberg.  

"The stock has been a tremendous performer right out of the gate," Terry Tillman, an analyst at Raymond James, told Bloomberg. "It was not by any means a cheap stock and even after today, if I just look at it now it's still got premium valuation."

So far today, 1.62 million shares of Shopify have traded, versus its 30-day average of 349,300 shares.

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