NEW YORK, Jan 2, 2026, 14:22 ET — Regular session
- Klaviyo shares fell about 8% in afternoon trade, underperforming a weaker software sector.
- HubSpot and Braze also slid, while a broad software ETF lagged the wider tech market.
- Investors are watching next week’s U.S. labor data and the timing of Klaviyo’s next earnings update.
Klaviyo, Inc. shares fell more than 8% on Friday afternoon, extending a pullback in software stocks in the first regular trading session of 2026. The stock was down 8.4% at $29.75 after moving between $32.46 and $29.64 on the day, according to market data.
The move matters because investors are re-pricing rate-sensitive growth names at the start of the year, when positioning often resets and liquidity can thin out. For smaller software companies, that can amplify day-to-day swings.
Software broadly lagged. The iShares Expanded Tech-Software Sector ETF fell about 3.1%, while marketing software peers HubSpot and Braze were each down roughly 5%; the Nasdaq-tracking Invesco QQQ was off about 0.4%.
Klaviyo opened near $32.52 and quickly reversed lower, leaving the stock below the $30 level at its session low.
Klaviyo provides a customer relationship management platform for business-to-consumer brands — software that helps companies manage customer data and run marketing campaigns across channels such as email and text messaging.
An SEC filing in December showed the board appointed Chano Fernández as co-chief executive officer effective Jan. 1, serving alongside co-founder Andrew Bialecki.
In a company statement, Klaviyo said Bialecki would focus on product and its AI roadmap, while Fernández would lead go-to-market and operations.
Klaviyo last updated investors on Nov. 5, when it reported third-quarter results and raised its full-year outlook.
The broader backdrop stayed choppy. “The next Fed Chair is probably going to be much more dovish than Jerome Powell,” Dennis Dick, chief market strategist at Stock Trader Network, told Reuters, as investors looked ahead to next week’s labor-market data. Reuters
Rate expectations matter for growth software because investors value future cash flows more when interest rates fall; higher yields can compress those valuations even if company fundamentals do not change.
