NEW YORK, January 4, 2026, 10:48 ET — Market closed
- Klaviyo shares fell 9.7% on Friday, sliding with high-growth software as Treasury yields firmed.
- Peers HubSpot, Braze and Salesforce also dropped, while a broad software ETF underperformed.
- Focus shifts to U.S. jobs data this week and Klaviyo’s next earnings timing.
Klaviyo, Inc. (KVYO) shares ended the first trading day of 2026 down 9.7% on Friday at $29.32. The stock traded between $32.46 and $29.15 and saw about 4.9 million shares change hands.
The move matters because Klaviyo sits in the high-growth software bucket, where valuations often swing with changes in interest-rate expectations. When bond yields rise, investors tend to pay less for profits that are expected further out.
With U.S. markets closed on Sunday, attention turns to whether Friday’s slide was a one-day reset or the start of a broader rotation out of rate-sensitive growth names. Traders will also look for catalysts that can reprice the Fed outlook before the next round of company earnings.
On Friday, U.S. Treasury yields moved higher and value stocks outperformed growth as markets opened the year, Reuters reported. “Value is outperforming growth,” said Jed Ellerbroek, a portfolio manager at Argent Capital in St. Louis. Reuters
The weakness was not confined to Klaviyo. HubSpot fell 4.7%, Braze slid 5.1% and Salesforce dropped 4.3%, while the iShares Expanded Tech-Software Sector ETF — a basket of software shares that trades like a stock — fell 2.9%.
Zacks Investment Research on Jan. 3 assigned Klaviyo its top “Rank 1 (Strong Buy)” rating and cited upward estimate revisions over the past 60 days. The report listed Klaviyo’s 52-week range at $23.44 to $49.55, putting the shares about 41% below the past year’s high.
Klaviyo sells software that helps consumer brands automate marketing messages across email, text messages and push notifications — prompts sent to phones or browsers. Investors tend to treat the stock as a read-through on digital marketing budgets at e-commerce-focused companies.
For the company, the next test is whether revenue growth holds up after the holiday season while management keeps a close watch on profitability. Customer retention and the cost to acquire new customers will likely stay front and center in the next update.
But the downside scenario is straightforward: if yields keep moving higher on firm economic data, investors can continue to cut exposure to smaller growth software regardless of company execution. A conservative outlook from management, when it reports, would add to that pressure.
Competition remains another watchpoint. Larger platforms and specialist customer-engagement vendors — including Salesforce, HubSpot and Braze — can pressure pricing and raise customer churn risk in a softer demand environment.
Macro catalysts come quickly. Investors will parse the U.S. jobs report due Jan. 9 and the consumer price index on Jan. 13 for clues on whether the Fed has room to keep cutting rates, Reuters reported.
