Tech company Xero has plunged a day after it announced a doubling of its half-year net loss.
It also wiped more than $30 million off the company's value, with the market capitalisation now standing at $638 million.
The company's shares started the year at $2.76.
Hamilton Hindin Greene director Grant Williamson says the larger loss announced yesterday was expected and weak offshore markets might have also hastened Xero's decline, as investors sell out of risky stocks.
"Stocks that have performed the best normally do come under a bit of pressure as soon as the international markets start to weaken.
"It's not anything out of the ordinary, and if Wall Street picks up tonight, we'll probably see Xero pick back up again."
Mr Williamson says Xero gained 8.6% on Monday and last Thursday it was up 6.4%, while on one day in August it had a 5.9% drop.
"It is quite a volatile stock on the upside and the downside."
Xero ceo Rod Drury told NBR ONLINE yesterday the company is "absolutely in the growth phase" and its investments will drive a profitable business in the long term.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Auckland council puts debt issuing plans on ice over Brexit concerns
- Shewan report measures possible by end of year
- Light rail the winner in latest Auckland Transport turnaround
- Will people voluntarily stop owning cars within 20 or 30 years?
- Uber launches free Pandora personalised music for its Kiwi, Australian and US drivers
Most listened to
- BNZ's Jason Wong says the movements in the currency market last week were some of the biggest in history
- CBL's Peter Harris on uncertain times in the UK insurance industry
- Govt performing an awkward political U-turn on foreign trusts. Rob Hosking with John Shewan and John Key
- Trade Minister Todd McClay says plans for an FTA with the EU will not be hindered by the Brexit
- Oxford University academic Malcolm McCulloch predicts the imminent death of the internal combustion engine