Citron Research a firm run by legendary short seller Andrew Left The Bounty Hunter Of Wall Street released a detailed report yesterday on Shopify accusing the company for violating federal trade commission legislation. See the report here: Citron Exposes The Dark Side Of Shopify
Shopify is a platform provider for e-commerce businesses, they provide all the backend of an e-commerce store to help entrepreneurs to focus more on the product that they produce and sell online. Shopify is up 124% year-to-date notwithstanding that it closed down 11.5% on the bad news from Citron Research. This marks their worst trading day this year.
Andrew is basically claiming that Shopify is a business dirtier than Herbalife
see his Tweet below. Another Research Firm Baird wrote their rebuttal to Citron basically rubbishing the claims and saying this pull back Citron Research Creates A Buying Opportunity
Andrew Left has a good track record as a short seller and he’s not known for shooting from the hip, this is a guy that goes for the jugular! He has the nose as sharp as a bloodhound to sniff all the accounting frauds, companies that defraud and mislead investors, naughty equity analysts. He’s a cross between a no nonsense detective with an eye for detail and an obsessive forensic accountant. Let us not forget the old adage that says where there’s smoke there’s fire. I wouldn’t touch this one with a ten foot barge pole!