Short-selling ‘troll’ targeted Shopify
CEO responds to report questioning company’s sustainability, marketing tactics
NEW YORK— Shopify Inc. chief executive officer Tobi Lutke called a short seller that targeted his company a “troll” in his first public response since being targeted by Andrew Left’s Citron Research last week.
Left, who said he had taken a short position in the stock, published a damning assessment on Oct. 4.
In it, he questioned the sustainability of the Canadian e-commerce company’s growth rate and called its marketing tactics illegal.
Though Wall Street analysts overwhelmingly stood by Shopify and rejected Left’s claims, the company’s shares fell12 per cent, its biggest oneday decline since listing in May 2015.
“Lots of people want me to address the short-selling troll that’s targeting” Shopify, Lutke tweeted Tuesday.
“Looking forward to next earnings calls to do so.”
Lutke added, “The irony of an outfit like Citron accusing any business of being a get-rich-quick scheme should not be lost on anyone.”
Shopify helps small merchants set up online stores.
Citron’s report alleges the vast majority of them are recruited by promoters promising the website is an easy way to make money without doing much work.
The document goes on to say that, eventually, the company’s growth will crumble when these merchants fail.
Left was contacted by Bloomberg for comment. He immediately responded to Lutke calling him a troll, saying it “shows his immaturity as a CEO.”