Shopify Analyst Who Saw Selloff Coming Says Too Soon to Buy

The analyst who slapped the only sell rating on Shopify Inc. over valuation concerns ahead of its blistering rout said it’s still too soon to jump back in.

Veritas Investment Research analyst Liam Gallagher downgraded the Canadian tech darling to sell in August, when a spike in the share price put it at about 95 times forward earnings, a hefty premium. While at first, it seemed like he’d missed something — shares gained more than 20% to a record in October — the call proved prescient as the stock then plunged more than 30% from the peak.