Xero falls 9% to five-month low

Xero CEO Rod Drury

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Xero shares were down 9.18% to $30.06 (for a market cap of $3.8 billion) in midday trading as the stock fell to levels not seen since last November.

The stock [NZX:XRO] has been battered over the past fortnight, and is now well off its all-time high of $45.01, hit on March 6, which valued the company at $5.47 billion.

Xero has been caught up in a worldwide selloff of tech stocks - a phenomena that returned this morning NZ time as the Nasdaq fell 3.10%, reversing a small recovery earlier this week. 

Biotechs have been hit by the selloff too, including Pacific Edge [NZX:PEB] on the local exchange, down 5.74% in midday trading to also hit a five-month low.

Investors fear a new tech bubble as earnings season approaches in the US, IG markets strategist Evan Lucas told NBR earlier this week. There has been an associated re-focus on traditional earnings and revenue metrics, Mr Lucas said, just as Xero was announcing it had more than doubled its annual loss

Xero has also been hit by a wave of negative comments from analysts over the period, with Goldman Sachs initiating the stock with a "sell", and others downgrading it.

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NZ Market Snapshot


Sym Price Change
USD 0.6673 -0.0035 -0.52%
AUD 0.9148 0.0011 0.12%
EUR 0.6076 0.0011 0.18%
GBP 0.4277 -0.0022 -0.51%
HKD 5.1726 -0.0280 -0.54%
JPY 82.6990 -0.2420 -0.29%


Commodity Price Change Time
Gold Index 1096.2 -0.200 2015-07-28T00:
Oil Brent 53.3 -0.170 2015-07-28T00:
Oil Nymex 48.0 0.560 2015-07-28T00:
Silver Index 14.6 0.040 2015-07-28T00:


Symbol Open High Last %
NZX 50 5848.4 5882.9 5848.4 0.38%
NASDAQ 5097.9 5117.8 5089.2 0.44%
DAX 11249.3 11253.6 11173.9 0.34%
DJI 17631.4 17776.8 17630.3 0.69%
FTSE 6555.3 6634.0 6555.3 1.16%
HKSE 24630.4 24718.6 24503.9 0.47%
NI225 20425.7 20425.7 20328.9 -0.13%