Shopify Shares Are Surging: What's Going On?

BY Benzinga | TREASURY | 05/19/22 03:07 PM EDT

Shopify Inc (NYSE:SHOP) shares are trading higher Thursday amid a drop in Treasury yields. 

The 10-Year Treasury yield was hovering around 2.855% at press time. Lower rates increase the present value of future cash flows, which can positively impact the valuations of growth stocks.

Crypto.com on Tuesday announced Shopify merchants can now enable Crypto.com Pay on their online storefronts, allowing them to expand their reach by giving customers more ways to make their purchases with crypto.

"Our growing blockchain ecosystem demonstrates our commitment to supporting merchants with alternative payment methods on their storefronts, helping to further expand what's possible in commerce," said John Lee, lead of blockchain ecosystem at Shopify.

Shopify has been one of the most beaten-down stocks since the start of the year. Thursday's bounce comes after the stock had declined about 75% year-to-date.

See Also: Why Immunome Shares Are Rising

SHOP Price Action: Shopify shares have traded between $308.06 and $1,762.91 over a 52-week period.

According to data from Benzinga Pro, the stock was up 12.4% at $405.30 at press time.

Photo: Open Grid Scheduler from Flickr.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article