Shares of Shopify (NYSE: SHOP) were falling today in another risk-off day for the stock market. A strong initial unemployment claims report seemed to feed the bearish sentiment, signaling that the Federal Reserve may have a ways to go in order to bring inflation under control as the economy is still running hot. As an unprofitable growth stock, Shopify is more sensitive to the macroeconomic climate than most stocks, and it also has direct exposure to consumer spending, making it different from most of the software-as-a-service (SaaS) sector.
Shopify (NYSE: SHOP), a leading e-commerce solutions provider, has seen its share price plunge by more than 80% from its peak of $176. The stock price correction will attract bargain hunters, but is Shopify stock a buy now? Shopify has had a phenomenal run.
A broad cross-section of stocks charged sharply higher on Wednesday, as Wall Street focused on Treasury yields and foreign government moves to settle unrest in the financial markets. Shares of e-commerce kingpin Shopify (NYSE: SHOP) rose as much as 5.5%, digital payments denizen PayPal (NASDAQ: PYPL) jumped as much as 6.9%, and Latin American e-commerce and fintech leader MercadoLibre (NASDAQ: MELI) surged as much as 8.3%. Positive developments in the unfolding saga involving the British pound and a spike in U.S. Treasury yields provided the catalyst.