Shopify CEO Lutke rejects short seller criticism

epa04760365 Tobias Lutke (4-L), the CEO of the e-commerce site Shopify, Russ Jones (2-L), the company's chief financial officer,  and others celebrate ringing the Opening Bell before the initial public offering of Shopify at the New York Stock Exchange in New York, New York, USA, 21 May 2015. Shopify, an e-commerce software company based in Canada, was valued at over 1 billion US dollars in the IPO.  EPA/JUSTIN LANE

Bloomberg

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 recently.
Left, who said he had taken a short position in the stock, published a report questioning the
sustainability of the Canadian e-commerce company’s growth rate and calling its marketing tactics illegal. Though Wall Street analysts overwhelmingly stood by Shopify and rejected Left’s claims, the company’s shares fell 12 percent, its biggest one-day decline since listing in May 2015.
“Lots of people want me to address the short-selling troll that’s targeting,” Shopify, Lutke tweeted. “Looking forward to next earnings calls to do so.”
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, and that eventually the company’s growth will crumble when these merchants fail.
Left immediately responded to Lutke calling him a troll when contacted by Bloomberg, saying it “shows his immaturity as a CEO.”

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