Shopify Inc (NYSE: SHOP) shares are trading higher Tuesday amid a drop in yields.
Treasury yields are falling amid economic growth concerns. The Federal Reserve is in the midst of what is expected to be its most aggressive tightening cycle in more than 40 years as the central bank attempts to tame runaway inflation. Investors continue to worry about rising inflation and the potential for higher rates to cause a recession.
Lower rates increase the present value of future cash flows, which can positively impact the valuations of growth stocks. The 10-Year Treasury yield was hovering around 2.78% at press time.
JMP Securities analyst Andrew Boone initiated coverage on Shopify with a Market Perform rating on Tuesday.
Related Link: Read JMP Securities Analyst's Take On Shopify
Truist Securities analyst Terry Tillman maintained Shopify with a Hold rating and adjusted the price target to $35 to reflect the stock split.
SHOP Price Action: Shopify has traded between $176.29 and $29.72 over a 52-week period.
The stock was up 4.23% at $32.75 at press time, according to data from Benzinga Pro.
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