Full disclosure, I did not do any of my own research on this. Watched a comprehensive video from Citron Research, the guy that predicted the fall of Valeant Pharmaceuticals (VRX).
The quotes on Shopify (SHOP), Facebook, Google, YouTube on how Shopify makes millionaires sound more of a get rich scheme.
They might have a tangible revenue stream, and hopefully survive this, but it is unlikely that the stock will stand the valuation thereafter. Shopify cannot manage to be an $11 billion company and the forward P/E of 522x will not help it's bull case.
But do you have to lose? While, if the stock survives this and continues moving higher. Also, it reports its earnings at the end of this month and maybe that will surprise the street. In addition, consensus wall street price estimates for the stock is $122.57/share. Meaning Citron might be wrong. But for a stock that has grown more than 150% y/y, only 6% from its 52-week high but 68% higher from its lows, is the risk/reward opportunity worth it?
To be on the safe side, don't scale your position, don't walk away from Shopify but RUN!!!
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.