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Shopify Tumbles After Citron Calls the Company a ‘Get-Rich-Quick Scheme’

10 points by petethomas 9y ago

metalliqaz 9y ago
Step 1: Short X stock Step 2: Trash talk company X Step 3: Profit! It must be great having such a strong bully pulpit when you're in the business of shorting stocks. Hard to believe this doesn't worry regulators at all.
rcar1046 9y ago
Comparing a company that gives individuals and small businesses the easiest path, to date, to launch an online presence to reach consumers directly, to a pyramid scheme is ridiculous and transparent when coming from someone who has publicly shorted the stock. If you're paying attention, there is definitely a trend of smaller individual makers creating successful products and companies around those products that would otherwise not have been possible to bring to market without the ease which Shopify's platform provides. Citron's report, bases much of their scare tactic on...a Google search? While I do agree Shopify might need to get a tighter control on their affiliates (every affilate marketing program runs into this problem in the beginning) and how they're promoting Shopify, comparing Shopify to Herbalife is ridiculous and a transparent attempt on Citron's part. Andrew Left's rant (with his used car salesman delivery) and the report (http://www.citronresearch.com/citron-exposes-the-dark-side-of-shopify/ http://www.citronresearch.com/citron-exposes-the-dark-side-o...) in general reeks more of bad affiliate marketing on his part than anything he presents against Shopify. The report itself resembles a classic long form sale page more than a reputable report on a company's prospects. It's unfortunate the market reacts to such stupidity and he's able to profit off of it.
NicoJuicy 9y ago
This is really weird. I am in a lot of ecom groups and it's ALL shopify... Nothing else
acchow 9y ago
Does anyone have any more information about Citron Research. Have they made ridiculous claims that turned out to be true in the past?
- propter_hoc 9y ago
  Yes. He's quite well known and respected. Here's a profile the New York Times did of him last year: https://mobile.nytimes.com/2017/06/08/magazine/the-bounty-hunter-of-wall-street.html https://mobile.nytimes.com/2017/06/08/magazine/the-bounty-hu... He's often been right, but like any investor, he's also often been wrong, of course.

10 points by petethomas 9y ago

Step 1: Short X stock Step 2: Trash talk company X Step 3: Profit! It must be great having such a strong bully pulpit when you're in the business of shorting stocks. Hard to believe this doesn't worry regulators at all.

rcar1046 9y ago

Comparing a company that gives individuals and small businesses the easiest path, to date, to launch an online presence to reach consumers directly, to a pyramid scheme is ridiculous and transparent when coming from someone who has publicly shorted the stock. If you're paying attention, there is definitely a trend of smaller individual makers creating successful products and companies around those products that would otherwise not have been possible to bring to market without the ease which Shopify's platform provides. Citron's report, bases much of their scare tactic on...a Google search? While I do agree Shopify might need to get a tighter control on their affiliates (every affilate marketing program runs into this problem in the beginning) and how they're promoting Shopify, comparing Shopify to Herbalife is ridiculous and a transparent attempt on Citron's part. Andrew Left's rant (with his used car salesman delivery) and the report (http://www.citronresearch.com/citron-exposes-the-dark-side-of-shopify/ http://www.citronresearch.com/citron-exposes-the-dark-side-o...) in general reeks more of bad affiliate marketing on his part than anything he presents against Shopify. The report itself resembles a classic long form sale page more than a reputable report on a company's prospects. It's unfortunate the market reacts to such stupidity and he's able to profit off of it.

NicoJuicy 9y ago

This is really weird. I am in a lot of ecom groups and it's ALL shopify... Nothing else

acchow 9y ago

Does anyone have any more information about Citron Research. Have they made ridiculous claims that turned out to be true in the past?

propter_hoc 9y ago
Yes. He's quite well known and respected. Here's a profile the New York Times did of him last year: https://mobile.nytimes.com/2017/06/08/magazine/the-bounty-hunter-of-wall-street.html https://mobile.nytimes.com/2017/06/08/magazine/the-bounty-hu... He's often been right, but like any investor, he's also often been wrong, of course.