Shopify is one of the hottest stocks on the market today. The company’s share price has more than tripled in the past year, and its market value now stands at over $30 billion.
But not everyone is bullish on Shopify. There are a number of so-called “short sellers” who believe that the stock is overvalued and due for a fall.
One of the most prominent short sellers is Andrew Left of Citron Research. Left has been bearish on Shopify for several years, and he’s made no secret of his views. In a recent interview, he said that he believes Shopify is “the most dangerous stock in the market.”
Left isn’t alone in his views. There are a number of other well-known short sellers who have been betting against Shopify, including Mark Cohodes, Doug Kass, and Whitney Tilson.
So why do these investors believe that Shopify is headed for a fall? There are a few reasons.
PRO TIP: If you are thinking about shorting Shopify, be warned that this stock is very volatile and prone to big swings. There is a lot of uncertainty surrounding the company and its future, so shorting it could be a very risky move.
First, they point to the fact that Shopify is losing money. The company is investing heavily in growth, and it’s not yet profitable on a GAAP basis. Short sellers believe that this lack of profitability will eventually catch up to the stock, and they point to other loss-making companies like Amazon and Tesla as examples.
Second, they argue that Shopify is over-reliant on a small number of big customers. A large chunk of the company’s revenue comes from just a handful of large merchants, and if any of them were to leave, it would be a big blow to Shopify’s business.
Third, they contend that Shopify’s valuation is simply too high. The stock trades at around 18 times sales, which is expensive for a company that isn’t yet profitable. And even if we assume that Shopify can eventually achieve profitability, it would need to grow its revenue at an incredible rate to justify its current valuation.
Short sellers are often vilified by the market, but they can sometimes be right. Only time will tell if they’re correct about Shopify.
The jury is still out on whether or not Shopify will be successful in the long run. Short sellers are betting against the company because they believe its stock is overvalued and due for a fall. Only time will tell if they’re right or wrong about Shopify.
9 Related Question Answers Found
Shopify is a popular ecommerce platform that allows businesses of all sizes to create an online store. Over half a million businesses worldwide use Shopify, including some very well-known brands. Some of the biggest brands using Shopify include:
Tesla
Puma
Olympus
Coca-Cola
Shopify is also popular with small businesses and entrepreneurs.
Shopify is a popular ecommerce platform that enables businesses of all sizes to create and manage their own online stores. Shopify is used by a wide range of companies, including small businesses, large businesses, start-UPS, and even some governments. Shopify is popular for a variety of reasons.
Shopify is used by some of the biggest companies in the world. Here are a few examples:
– Walmart uses Shopify to run its e-commerce platform.
– Uber uses Shopify to power its rider app and driver app.
– Airbnb uses Shopify to manage its customer accounts and listings. Shopify is a popular platform for businesses of all sizes because it provides an easy way to create a custom e-commerce website, manage inventory, and track sales.
Shopify is a platform for businesses of all sizes to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. Shopify is used by major companies such as Tesla, Red Bull, Nestle, and GE.
Shopify is a platform for businesses of all sizes to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. Shopify is a popular choice for merchants because it is easy to use and has a wide range of features.
Shopify is a platform for businesses of all sizes to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. Shopify is used by businesses of all sizes, from small businesses to enterprises.
Shopify is a popular ecommerce platform for small businesses and entrepreneurs. The platform offers a wide range of features that can help businesses of all sizes run their online stores. Some of the most well-known brands that use Shopify include Kickstarter, Etsy, and OkCupid.
There are many benefits to using Shopify for your online shop. Perhaps the biggest benefit is that Shopify makes it easy to set up and manage your shop.Shopify is an ecommerce platform that enables you to set up an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features.
Artists Use Shopify to Create and Sell Their Artwork
Shopify is the perfect platform for artists to sell their artwork. It is easy to use and has all the tools you need to create a professional online store. Plus, Shopify is extremely affordable, starting at just $9 per month.
