What Happened?
Shares of payments and billing software maker Bill.com (NYSE: BILL) jumped 4.2% in the afternoon session after the recently passed "One Big, Beautiful Bill" is seen as a positive for the company's core small and medium-sized business (SMB) customers. The sweeping tax reform package includes several provisions aimed at supporting smaller companies, such as making the small business deduction permanent and renewing incentives for research and development. Bill.com provides a financial operations platform primarily for SMBs, helping them manage payments, billing, and expenses. The positive macro-economic tailwind from the new legislation could lead to a healthier environment for these businesses. An improved financial outlook for SMBs may translate into increased spending on technology and software, potentially boosting demand for Bill.com's platform as companies invest in tools to automate and scale their operations.
After the initial pop the shares cooled down to $46.38, up 3.7% from previous close.
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What Is The Market Telling Us
Bill.com’s shares are extremely volatile and have had 31 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.
Bill.com is down 44.8% since the beginning of the year, and at $46.38 per share, it is trading 52.4% below its 52-week high of $97.41 from December 2024. Investors who bought $1,000 worth of Bill.com’s shares 5 years ago would now be looking at an investment worth $559.34.
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