Andrew Left is back at it again.
The Citron Research founder tweeted on Wednesday that the Canadian e-commerce company Shopify was a “business dirtier than Herbalife.”
In the video, Left lays out the big question he has around the company: Outside the roughly 50,000 verifiable merchants working with Shopify, who are the other 450,000 the company says it has? According to Left, many of them are, among other things, influencers paid to promote the company.
“Shopify, a company that has mastered the good ol’ get-rich-quick scheme,” Left says in the video. “What’s never discussed by Wall Street is the real business behind Shopify.”
— Citron Research (@CitronResearch) October 4, 2017
Left placed a price target of $60 on Shopify’s stock, which is roughly 49% below the Tuesday closing price. Shopify’s stock plunged as much as 14% on Wednesday.
And while the merits of Left’s claims are certainly up for debate, Shopify’s stock plunge proves once again that when Left speaks out against a company, the market listens.
Past targets of Left’s have included Express Scripts, which he said in December could be targeted during the Trump administration, and The Chemours Co., a DuPont spin-off he warned might be bankrupted by a class-action lawsuit.
But Left is perhaps best known for his damning October 2015 report that accused Valeant Pharmaceuticals of being a “pharmaceutical Enron,” and he helped bring up questions regarding the firm’s accounting and relationship with the specialty pharmacy Philidor.
- Markets Insider