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Shopify Stock Will Plunge Almost 50% Says Prominent Short-Seller

Shopify stock is reeling from allegations of fraudulent marketing practices, but there may be light at the end of the tunnel

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On Oct. 4, shares of Shopify Inc (US) (NYSE:SHOP) fell 11% after a bearish report was issued by Citron Research’s Andrew Left. On Thursday, shares are down even more and Shopify stock is down a whopping 20% in three days.

How far will it go?

What Citron Had to Say

Left is a notorious short-seller. Longs fear his comments, as he speaks on CNBC and issues reports or videos on his own site. Most famously, Left nailed the short sale in Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Perhaps this is why so many fear his other short calls — he could be right, in devastating manner. Although, it should be noted he has a pretty notable bullish call on BlackBerry Ltd (NASDAQ:BBRY), saying it could double as he compares it to Nvidia Corporation (NASDAQ:NVDA).

In regards to Shopify, Left slapped a $60 price target on the stock — “and that is before they are caught red handed by the FTC.” Considering that on Tuesday, SHOP stock hit $120, this would be a massive decline. Amazingly, if Shopify stock was to drop to $60, it would still be up year-to-date. That tells you just how strong it’s been. Despite the recent decline, Shopify stock is up 123.5% so far in 2017.

So what exactly did Left say? Well, he called Shopify “a company that hides under the shroud of a cloud-based e-commerce solution for Small and Medium sized Business (SMB).” Adding that it “is the promoter of the hottest new ‘get rich quick’ scheme on the internet.”

Others have rebuked Left’s claims, saying that he’s not spinning a fair picture. One even called his claims “all smoke and no fire.”

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Article printed from InvestorPlace Media, https://investorplace.com/2017/10/shopify-stock-plunge/.

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