Shopify Inc (NYSE:SHOP) shares are trading lower Monday alongside several companies in the broader technology sector amid overall weakness as stocks continue to sell off following worse-than-expected May CPI data.
Inflation accelerated again in May as the headline CPI rose 8.6%, up from 8.3% in April and above average economist estimates of 8.3%. Core inflation, excluding food and energy prices, was up 6% in April, which was also above economist estimates of 5.9%.
An increase in U.S. Treasury yields has also weighed on the tech sector. Higher rates decrease the present value of future cash flows, which can negatively impact the valuations of growth stocks. The 10-Year Treasury yield was hovering around 3.305% at press time.
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Shopify is a provider of essential internet infrastructure for commerce, offering trusted tools to start, grow, market and manage a retail business of any size.
SHOP Price Action: Shopify has traded between $1,762.91 and $308.06 over a 52-week period.
The stock was down 9.25% at $316.19 at press time, according to data from Benzinga Pro.
Photo: Open Grid Scheduler from Flickr.
