What Happened?
A number of stocks fell in the afternoon session after the benchmark U.S. 10-year Treasury yield climbed back above 5% to levels not seen since 2007, lifting discount rates on long-duration growth earnings. According to CNBC, the 10-year yield surged to 5.23% on Friday, its highest level since 2007, after trading below 4.8% earlier in September. CNBC reported Monday that the yield was again pressing multiyear highs — above 5.23% in morning trade — as oil stayed elevated and investors braced for PCE, GDP, and jobs data. Macquarie strategist Thierry Wizman told CNBC the move reflects not only sticky inflation and Fed hike odds, but also heavy Treasury and corporate bond issuance, including AI-related borrowing. Higher yields raise borrowing costs and make distant cash flows look less attractive versus safer government bonds — a setup that tends to hit consumer-internet names such as DoorDash, Carvana, Reddit, Match, and Bumble harder than slower-growth sectors. Morningstar, citing Dow Jones, similarly said technology shares led early declines as the selloff in Treasuries extended into jobs week.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Social Networking company Yelp (NYSE: YELP) fell 3.5%. Is now the time to buy Yelp? Access our full analysis report here, it’s free.
- Gig Economy company DoorDash (NASDAQ: DASH) fell 7.1%. Is now the time to buy DoorDash? Access our full analysis report here, it’s free.
- Consumer Subscription company Coursera (NYSE: COUR) fell 9.2%. Is now the time to buy Coursera? Access our full analysis report here, it’s free.
- Online Marketplace company LegalZoom (NASDAQ: LZ) fell 4%. Is now the time to buy LegalZoom? Access our full analysis report here, it’s free.
- Social Networking company Pinterest (NYSE: PINS) fell 2.5%. Is now the time to buy Pinterest? Access our full analysis report here, it’s free.
Zooming In On Coursera (COUR)
Coursera’s shares are extremely volatile and have had 30 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 biggest move we wrote about over the last year was 2 months ago when the stock dropped 18% on the news that second-quarter 2026 earnings report presented a mixed financial picture that left investors concerned about its underlying health. The company surpassed Wall Street's expectations on revenue and earnings, with sales growing nearly 60% year-over-year to $298.6 million. Coursera also significantly raised its revenue forecast for the full year. However, this positive news was overshadowed by several red flags. The company's operating margin deteriorated sharply to -28.4% from -8.1% in the same quarter last year, and free cash flow swung to a negative $32.6 million. Additionally, its EBITDA guidance for the upcoming third quarter came in slightly below analysts' estimates. These factors signaled growing pressure on profitability and cash generation, leading investors to sell off the stock despite the strong top-line results.
Coursera is down 34.5% since the beginning of the year, and at $4.64 per share, it is trading 61.6% below its 52-week high of $12.07 from September 2025. Investors who bought $1,000 worth of Coursera’s shares 5 years ago would now be looking at only $147.91.
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