Better Stock-Split Stock to Buy: Tesla or Shopify?

The U.S. equity market has been facing tough times in 2022. With inflation reaching a 40-year high in June 2022, worries of rising interest rates slowing down the economy and escalating geopolitical tensions across the world, the benchmark S&P 500 has reported its worst first-half-year performance in the past 52 years.

Despite this, investors have remained keen on stock splits wherein a publicly traded company increases its outstanding share count without changing overall market capitalization. Since this also causes a proportional reduction in share price, it makes the stock more affordable for investors. It also indicates to the market that the price surged too high. Therefore, it's seen as a positive move.

Not surprisingly, Tesla (TSLA -1.10%) and Shopify (SHOP 0.64%) are among the top contenders in the list of stock-split stocks that have garnered maximum investor interest. However, there is one that is fundamentally stronger than the other and can prove to be a better buy in the current uncertain macroeconomic environment.

The case for Tesla

The year 2022 has been quite stressful for leading electric vehicle (EV) player Tesla. Besides macroeconomic pressures, the company has also been subject to significant supply chain bottlenecks, surging labor and raw material costs, and production challenges (e.g., factory shutdowns) in Shanghai.