Shares of software stocks are trading lower amid a rise in Treasury yields.
Portfolio Pulse from Benzinga Newsdesk
Software stocks are trading lower due to an increase in Treasury yields, which can affect the cost of borrowing and discount rates used in company valuations.
January 02, 2024 | 4:38 pm
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NEGATIVE IMPACT
Adobe's stock is trading lower as rising Treasury yields may increase borrowing costs and negatively affect valuation metrics.
Adobe, being a large software company, is sensitive to changes in interest rates, which can affect its cost of capital and the present value of future cash flows.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Autodesk shares are down with the broader software sector as higher Treasury yields potentially increase the company's capital costs.
Autodesk's performance is likely to be impacted by the rising Treasury yields, which can lead to higher discount rates for future earnings, affecting stock valuations.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Salesforce's stock is negatively impacted by the uptick in Treasury yields, which can lead to higher borrowing costs and lower valuations.
As Treasury yields rise, growth stocks like Salesforce may see their valuations decline due to increased borrowing costs and a higher rate used to discount future cash flows.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Workday experiences a decline in share price following the broader trend in the software industry, influenced by the rise in Treasury yields.
Workday, as part of the tech sector, is affected by the macroeconomic change in Treasury yields, which can lead to higher discount rates and affect stock valuations.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50