Stock Splits vs. Share Consolidations
Generally Speaking:
Stock Splits (like SHOP just completed) are good for shareholders and typically see a rise in the post-split share price as it is usually done when a company's shares have risen to a level that purchasing board lots (or at least a sizeable number of shares) per purchase transaction becomes quite expensive for shareholders. Thus, the combination of a stock that has recently been performing very well in terms of share price increases, the confidence such a split implies that the company doesn't foresee any problems on the horizon re. signficiant share price decline, and the (likely) increased trading volume as more investors pile in post-split to purchase (now more reasonably priced) board lots or sizeable quantities typically leads to a bump in the post-split price.
Share consolidations (or "Reverse Splits" as some call them) usually occur after a stock's share price takes a beating (often when it drops to penny stock status, ie, under 1.00 per share) as a way of staying on the radar screens of the investment community since many insititutional investors / weath managers will not even look at a stock that is trading at under $1 per share. Thus, the company is sending a signal that it doesn't expect its share price to rise much going forward and wants to put lipstick on a pig by having current shareholders exchange say, each 10 existing ("old") shares a current shareholder owns for one "new" share worth 10 times the price. This is usually viewed as a negative by the market as it shows a lack of confidence and weakness by company executives in terms of near-term prospects, thus the post-consolidation price usually drops.
SHOP seems to be an interesting anomaly. Though its pre-split price was still high, it had taken a huge hit over the past year before the split was implemented, signaling that the company has experienced problems to date with the severe share price drop before the split. Since the split was executed, the share price is down, not up, which I suspect is the result of the investment community (rightly) choosing to focus on the actual recent performance of the company itself and the decisions it has made instead of the reduction of the share price to levels where more investors can afford to buy board lots or at least a good number of shares per transaction.