It is basically the same merchant quality thesis that has been hashed about quite a bit. There is a comment from Bert already below the article, even though it was published only about half an hour ago. Bert basically takes the author to task, particularly for claiming that the author’s last article advanced their thesis when Shopify is so close to its all-time high.
https://seekingalpha.com/article/4188024-shopifys-new-mercha…
volfan84
long SHOP
Well, this “article” doesn’t seem to be impacting the stock price. As I’ve said before, consumer spending in the US is very strong over last year so SHOP and SQ should post strong GMV in Q2 and Q3 (and Q4 if this trend continues). Most people tend to spend what they earn and with the tax cuts and strong job growth there’s a lot more to spend…
This might be of interest to people who own amazon and shopify. This subject has been mentioned before by an infamous short seller we all know. I tend to ignore the noise and look at results and fake reviews and supposition happen everywhere. Only posting this as there is a comparison mentioned regarding shopify, but its all heresay and yesterdays news. Here is the section in question…
“Then, somehow the word Shopify jumped out of my mouth and he laughed again. He explained another black hat trick to me that I still do not understand. He said that the Chinese sellers in large numbers are setting up web sites on Shopify, and then use some Chinese developed software that they buy to gather info on U.S. and other worldwide online shoppers from Instagram, and then somehow use this info to drive traffic to their web sites. I asked him to explain more and tell me what the software was, but he told me that even if he gave me the web site info for the company that was selling the software, it was all in Chinese and I would not understand it anyways. He compared the software and hardware they use to gather this information from Instagram to how blockchain and crypto currency mining works but it was beyond my understanding. I have heard and read on TMF about Instagram advertising that these Chinese sellers do for free products before, but he told me that using this new software, they do not pay any money for ads on Instagram and are somehow mining the information they need. He mentioned that the software is costing the Chinese sellers something around $5000 to $6000 USD. Hopefully someone here with more know how can figure out what black hat trick he was referring to.”
http://discussion.fool.com/all-5-star-reviews-on-amazon-are-fake…