Why Shopify Stock Sank 17.5% Today
Shares of Shopify (NYSE: SHOP) declined by more than 17% on Monday, coinciding with a brutal market sell-off.
As the number of confirmed cases of COVID-19 -- the disease caused by the novel coronavirus -- continues to surge around the world, health officials and government leaders are scrambling to slow the spread of the outbreak and mitigate the related economic fallout. The U.S. Federal Reserve, desperate to prevent a recession, cut its target federal funds rate to zero on Sunday. But rather than calm investors' nerves, the move only served to usher in another round of selling on the markets that resulted in the third worst drop in the Dow Jones Industrial Average in history.
High-priced growth stocks like Shopify were hit particularly hard.
Source Fool.com