BILL (BILL) Stock Trades Up, Here Is Why

What Happened?

Shares of financial automation platform BILL (NYSE:BILL) jumped 3.2% in the afternoon session after cooler-than-expected inflation data reignited hopes for Federal Reserve interest rate cuts. 

The November Consumer Price Index (CPI), a key measure of inflation, rose 2.7% year-over-year, coming in below economists' expectations of a 3.1% increase. Similarly, "core" inflation, which excludes volatile food and energy prices, rose 2.6%, beating the consensus forecast of 3.0%. This encouraging report meant that inflationary pressures were easing more quickly than anticipated. As a result, investors grew more optimistic that the Federal Reserve would have the flexibility to cut interest rates in the near future. Lower interest rates generally reduce borrowing costs for companies and can make stocks, particularly growth-oriented tech shares, more attractive to investors.

After the initial pop the shares cooled down to $55.13, up 3.5% from previous close.

Is now the time to buy BILL? Access our full analysis report here.

What Is The Market Telling Us

BILL’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 27 days ago when the stock gained 3.1% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. 

The positive sentiment followed comments from New York Federal Reserve President John Williams, a voting member of the rate-setting Federal Open Market Committee (FOMC), who indicated he sees room for further policy easing. Following his remarks, the probability of a December rate cut surged from 39% to 71%, according to the CME FedWatch Tool, causing Treasury yields to fall. Lower interest rates can be particularly beneficial for growth-oriented sectors like software, as they increase the present value of future earnings. This renewed hope provided a boost to the sector, which had recently faced pressure from concerns over high valuations in artificial intelligence.

BILL is down 34.4% since the beginning of the year, and at $55.13 per share, it is trading 43.2% below its 52-week high of $97.07 from January 2025. Investors who bought $1,000 worth of BILL’s shares 5 years ago would now be looking at an investment worth $372.31.

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