Shopify Inc. tumbled as much as 10 per cent after Citron Research began shorting the stock, saying the Canadian e-commerce company’s claims that it’s minting millionaires should be investigated, and questioning its ability to scale up.
In a stinging tweet and video rebuke, Citron founder Andrew Left called Ottawa-based Shopify a “get-rich-quick” scheme and “dirtier” than Herbalife Ltd., which has been targeted by regulators for deceptive business practices.
Sheryl So, a spokesperson for Shopify, said the company declined to comment on Los Angeles-based Citron’s claims.
Shopify, which provides websites, payments and shipping for online merchants, has become Canada’s tech darling, gaining eightfold from its initial public offering in May 2015 and becoming one of the world’s best-performing tech stocks. The shares fell 10 per cent to $130.69, the biggest intraday drop since November 2016. They are up 124 per cent this year.