Why SaaS Stocks Bounced Higher to Start 2023
The stock market is meandering to find its way to start 2023, and that's causing some strange moves. Software-as-a-service, or SaaS stocks, in particular, had a great start to the day, trading sharply higher, only to see valuations fall and even end up in negative territory.
Shares of Teladoc Health (NYSE: TDOC) jumped as much as 4.6% in early trading, only to fall to a 4.7% decline at 1:45 p.m. ET. Shopify (NYSE: SHOP) was up 5.1% at its peak, Block (NYSE: SQ) rose 7.4%, and HubSpot (NYSE: HUBS) rose 5.2%, but have all fallen to near breakeven at this writing.
These stocks often trade in unison because they operate in similar SaaS markets. In 2022, that was terrible for investors, as interest rates rose and investors sold off high-growth stocks like these. But that changed early on today.
Source Fool.com
