Many Shopify (NYSE: SHOP) investors spent Thursday's trading session weighing two very different new analyst reports on the company. As a result its share price see-sawed quite a bit during the day, at one point dropping 5% below Wednesday's close before recovering to a slight 0.4% gain. The day didn't begin auspiciously for Shopify analyses.
Technology stocks reverted to their old ways this week and were declining as investors grew increasingly concerned that the Federal Reserve's commitment to interest rate increases could end up pushing the economy into a recession. Investors were also responding to less-than-stellar news for Salesforce news this week, and an analyst's downgrade for Shopify's stock. Investors were generally pessimistic as they considered Federal Reserve Chairman Jerome Powell's comments last week.
Investing is great for your financial future, but you shouldn't do it before you have an emergency fund saved up -- one of the most important things in your financial life. Without an emergency fund, you run the risk of having to take out a loan to cover the expense, which adds to the cost because of the interest you'll owe. If you've been investing without an emergency fund and an unexpected expense happens, you could be forced to sell shares, possibly resulting in owing taxes on any profits (or taking a loss).