Topic: How To Invest

Stock Pickers Digest Hotline – Friday, October 6, 2017

Article Excerpt

SHOPIFY INC., $122.92, symbol SHOP on Toronto, offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels. They include both permanent and temporary retail stores, but also web, mobile and social-media platforms. Shopify shares took a 15% drop this week after Citron Research—a stock commentary website and short seller—issued a report criticizing the company’s sales development practices. Citron has had some success in the past with its short selling, most notably with Valeant Pharmaceuticals. However, fast-growing companies like Shopify often confound critics and go on to great success, even when their growth seems exceptionally rapid. We sometimes recommend selling half of an aggressive stock that has doubled—like Shopify has for us since we first recommended it in our February 2017 issue at $66.17. However, we still think the shares have room to rise. Meanwhile, though, at least in the short term, the high-profile attacks by Citron Research could weigh on the stock, and slow its sales…