Shopify dives after short-seller Andrew Left of Citron Research shorts the e-commerce stock
Shares of Shopify Inc (NYSE:SHOP) tumbled Thursday after famed short-seller Andrew Left of Citron Research went bearish and urged investors to short the Canadian e-commerce company
In a research note, Left and his team make the case that their newly-adopted short position stems from a “perfect storm” of business setbacks that will knock Shopify “off its high wire to $100 in the next 12 months.”
READ: Shopify: What a Difference a Month makes by Citron Research
Growing fearful about Left’s predictions, investors sent Shopify shares down 6% to $192.75 in afternoon trade.
In the past month, Citron says a lot has changed for Shopify as Square Inc (NYSE:SQ) announced it is revamping its online store; Mailchimp ended its partnership with the e-commerce site; and news surfaced that Microsoft (NASDAQ:MSFT) is launching a competitive offering to Shopify.
“Just when the business seemed unstoppable, the obvious change in narrative for this market darling will soon cause it to fall victim to the forces of gravity from its stratospheric valuation – which was based on no competition, no regulatory risk, and flawless execution,” wrote Left and his Citron team.
READ: Shopify’s 2Q earnings beat Street but shares fall on outlook, proposed offering
Another blow to Shopify’s business is that Facebook Inc (NASDAQ:FB) has launched an Instagram checkout. This eliminates the need for the 25 million businesses on the Instagram platform to seek out the services of an external website like Shopify.
“While Shopify has been expensive for a while, the short now is not a valuation call but rather a drastic change in the competitive and regulatory landscape,” added Citron.
Left is so convinced that he is right about Shopify that Citron has pledged to donate $200,000 to the Robin Hood Foundation, a charitable organization, if Shopify is trading over $200 in 12 months.
Headquartered in Ottawa, Shopify provides retailers with a suite of services including payments, marketing and shipping to simplify the process of running their online stores.
Contact Ellen Kelleher at [email protected]
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/217999/shopify-dives-after-short-seller-andrew-left-of-citron-research-shorts-the-e-commerce-stock-217999.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).