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Citron thinks Shopify is like Herbalife

33 pointsby infynyxx2over 7 years ago

13 comments

madamelicover 7 years ago
This is beyond grasping at straws.<p>Shopify performs a service, Herbalife does not. Shopify recruits people, Herbalife sells inventory.<p>I don&#x27;t see Shopify asking for upfront payments from their affiliates.<p>Not to mention the fact that a successful Shopify store relies on skill at SEO, social media and picking the right products. Herbalife relies on being early enough in the &quot;reverse funnel&quot; and having a lot of people downstream (not skill).<p>There is literally no similarities between Shopify and HerbaLife beyond a program recruiting people, which basically every large site has.
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dasil003over 7 years ago
I can&#x27;t help but laugh at the irony of the copywriting style, is this meant to appeal to the same kind of clueless audience that calls numbers for MLM-scheme posters stapled to telephone poles? If so, to what end?
actsasbuffoonover 7 years ago
This is a fundamental misunderstanding of the problem with Herbalife. The problem with Herbalife is that it is a pyramid scheme. You don’t make your money by selling products, you make it by recruiting people to sell for you, who recruit people to sell for them, and so on.<p>Shopify does not appear to be a pyramid scheme. I see nothing to suggest that you recruit other sellers recursively in order to generate revenue.<p>Herbalife is primarily noteworthy because they are a pyramid scheme. If you say that something is like Herbalife, then you’re strongly implying that other thing is also a pyramid scheme. If I say my cousin is like Vincent Van Gogh, you’d assume I mean that he’s a brilliant painter. If I was actually trying to convey that my cousin only has one ear, you’d understandly find my statement misleading, and probably poorly conceived.
save_ferrisover 7 years ago
&gt; Google search shopify and millionaire and you&#x27;ll see 27k results. Then go to Youtube and enter shopify and millionaire and you&#x27;ll see 10k results.<p>Funny, I just searched &quot;google ads millionaire&quot; and it returned 6M results, as well as 30k from Youtube. By Citron&#x27;s logic, Google is also like Herbalife.<p>Now, he might have a case if Shopify and Google generated these pieces of content themselves, but he makes no attempt to discover where the content originates.
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eliover 7 years ago
But aren&#x27;t the vast majority of Shopify users selling products (not recruiting other users to Shopify)?
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wonder_breadover 7 years ago
Pretty hilariously bad report. When they first came out with it the URL path said &#x27;Spotify&#x27; instead of &#x27;Shopify&#x27;
mrguyoramaover 7 years ago
I&#x27;ve never heard of this Citron Research group. However, anytime a company tries to sell something as a &quot;lifestyle&quot; or other cult like mentalities, you know something sketchy is going on.<p>Also, I&#x27;m disappointed that Herbal Life was only required to pay $200 million. Their predatory practices destroyed lives in order to enrich top dogs in the business, and that makes my blood boil
ng12over 7 years ago
Who listens to these clowns? I&#x27;m shocked they have such an overwhelming effect on the market ($SHOP is down ~20% since last week).
parthdesaiover 7 years ago
He probably made a ton of money shorting the stock.
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reiichirohover 7 years ago
Are these the losers who underestimated the fandom of the Ubquiti networking owners?
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frgtpsswrdlameover 7 years ago
@dang<p>What&#x27;s up with this flagging? A contrarian opinion on a tech darling shouldn&#x27;t be a basis for removal from the front page.
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RayVRover 7 years ago
Why was this flagged?
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soaredover 7 years ago
So is this like a conspiracy theory &#x2F; clickbait blog but for investors? The content (and even web design) is laughable.
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