Citron says a "drastic change" in the competitive and regulatory landscape will negatively impact the Shopify growth story, pointing to recent news from Mailchimp, Square, Instagram and even Microsoft.

Shopify (NYSE:SHOP) is down 2.95% and Citron predicts Shopify to drop to $100 in the next 12 months

The stock traded to an all time peak valuation, and now has competition with Instagram checkout, Square, and Microsoft. The	combined result is a perfect storm for Shopify that will knock the	stock down to $100 in	the next 12 months.

Don't panic. Over the long term, Shopify is a strong company with a solid founder.

Sided

ADMIN

VERIFIED

Mailchimp terminated its partnership with	Shopify.

The competition factor will hurt Shopify, and drop the stock. With social media platforms adding similar software to their platforms, and companies like Mailchimp dropping their partnership with Shopify, stock is bound to take at least somewhat of a dive over the next year.

Allison Ratzlaff

I agree with Allison that this stock will pull back from these levels.  However, if you want to play this stock from the long side... sell puts around 180 and make money while it is falling to a level of support.