Shopify jumps briefly after CEO discloses $10 million stock purchase

May 11, 2022 12:46 PM ETShopify Inc. (SHOP), SHOP:CABy: Kevin P. Curran, SA News Editor57 Comments

Shopify headquarters building in Ottawa, Ontario, Canada

JHVEPhoto/iStock Editorial via Getty Images

Shopify (NYSE:SHOP) spiked during Wednesday’s trading session shortly after CEO Tobi Lutke tweeted his intention to put his money where his mouth is.

Quote-tweeting FirstMark Capital founder Amish Jani’s glowing review of Shopify (SHOP -2.1%) management, Lutke voiced his belief that the stock was oversold after a steep drop in recent months.

“Thank you Amish. Totally agreed on this being a market over rotation,” he wrote. “I just placed a $10 [million] order for $SHOP stock myself.”

Within 20 minutes of hitting send, shares of the company Lutke helms jumped over 3% upward before giving back gains and eventually retreating into the red.

The German-born CEO has not been shy about questioning Wall Street as Shopify (SHOP) stock continues to fall. As of late, his frustration has been aimed at analyst models which he believes are unreliable and unfairly framed.

“Is there a place where financial analysts track records are kept? People seem to pay attention to them but are they being held accountable?” he asked his followers on Monday. “‘Company X,Y out-performed analyst expectation’ is just different framing form ‘analysts failed to accurately predict company X,Y.’”

Shares of the Canadian eCommerce company have crashed nearly 80% in the past six months.

Read more on recent eCommerce trends.

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