Article: Shopify Shares Fall Fast Following Report From Short Seller

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Shopify Shares Fall Fast Following Report From Short Seller

KEVIN CURRAN, 04 April 2019

Shares fell over 3% after the report’s release, cutting into the Canadian e-commerce company’s 50% gain to kick off 2019. “I still think they are best in class,” Andrew Left, Citron Research’s executive editor, acknowledged in an interview with Real Money. “It’s just that when you have a PE ratio over 300, its being priced like nothing bad can happen.”

He cited the emergence of competition from Square’s (SQ) online store, Facebook’s (FB) Instagram checkout, and the rumored launch of a Microsoft’s (MSFT) shopping competitor, as indicators that could deflate the stock. “This is a company that is priced for hyper growth. If they lose 15% of their base, their multiple is going to get smacked,” Left commented.

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