Shopify Investor Presentation — February 2019

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Shopify to $100 in the next 12 months

A year ago, when Nvidia was trading at $230 and

there was no stopping this leader in AI and

datacenter, Citron foresaw the compe>>on and

eventual headwinds to its core business. While investors cheered the stock all the way to $290,

we stuck by our guns and just when the stock

looked unstoppable it collapsed to under $130 in just two months.

If Shopify is trading over $200 in 12 months,

Citron will donate $200k to the Robin Hood Founda>on.

02 SHOP is 2019’s NVDA – It’s Unstoppable Until It’s Not

Follow Up to Citron’s 1 Year Challenge on NVDA 03 Citron famously commented on Shopify 18 months ago as we were cri>cal on its dependence on “entrepreneurs” otherwise known as dropshippers. While we maintain our cri>cism of that part of the business, we give full credit to Tobi and the Shopify team for crea>ng best in class ecommerce soOware for SMB merchants. The move of 50% in Shopify’ stock price this year despite its below consensus profit guidance can be aVributed to the rise in social commerce. However, remember that this guidance was given BEFORE the news flow over the past 30 days. Just when the business seemed unstoppable, the obvious change in narra>ve for this market darling will soon cause it to fall vic>m to the forces of gravity from its stratospheric valua>on -- which was based on no compe11on, no regulatory risk, and flawless execu1on. While Shopify has been expensive for a while, the short now is not a valua1on call but rather a dras1c change in the compe11ve and regulatory landscape. These risks will almost certainly nega1vely impact the growth of a stock priced at a forward mul1ple of over 300x. The Good, Bad, and the Ugly What Has Changed?

04 In the past month, A LOT has changed for Shopify:

•The stock traded to an all->me peak valua>on

•Facebook launched Instagram checkout

•Square announced it is revamping its online store

•Mailchimp terminated its partnership with Shopify

•Mark Zuckerberg pounded the table on cleaning up the Facebook pla`orm

•News surfaced that MicrosoO was launching a compe>>ve offering to Shopify

The combined result is a perfect storm for Shopify that will knock the stock off its high wire to $100 in the next 12

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