Shopify (NYSE: SHOP) was crushed by allegations it was little more than a get-rich-quick scheme. Shares that had nearly tripled over the past year have tumbled 20% since the critique broke in early October. That naturally leads an investor to wonder whether the e-commerce storefront will overcome these charges and make its stock a buy, or they'll prove true and buying now will be like catching a falling knife.
Famed short-seller Andrew Left at Citron Research issued a scathing rebuke of Shopify, alleging the platform routinely violates FTC marketing guidelines and was "dirtier" than Herbalife (NYSE: HLF), the multi-level marketing company that was required to pay a $200 million settlement with the regulatory agency.
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Source: Fool.com