Newspaper article The Canadian Press

Shopify Stock Falls for a Second Day after Business Model Challenged by Citron

Newspaper article The Canadian Press

Shopify Stock Falls for a Second Day after Business Model Challenged by Citron

Article excerpt

Shopify stock falls for second day

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TORONTO - Shopify Inc. (TSX:SHOP) stock has plunged for a second day, following a prominent short-seller's claim that it's running an overvalued get-rich-quick scheme.

The Canadian technology company issued a defence of its business early Thursday but didn't specifically refer to allegations published by Andrew Left of Citron Research.

After Left's comments, Shopify stock plunged by 11.5 per cent on Wednesday and it was down another seven per cent Thursday morning at the Toronto Stock Exchange.

On the New York Stock Exchange, Shopify was at US$97.91 at 10:30 a.m., down from Tuesday's close at US$120 but still above Left's estimate of its value at US$60.

Among other things, Left questioned how many of the merchants that use Shopify would meet the guidelines set by the U. …

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