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 0.7539 -0.0005 -0.07%
AUD 0.9754 -0.0006 -0.06%
EUR 0.6929 -0.0003 -0.04%
GBP 0.5070 0.0000 0.00%
HKD 5.8459 -0.0032 -0.05%
JPY 89.8910 -0.0710 -0.08%


Commodity Price Change Time
Gold Index 1198.2 -6.000 2015-03-27T00:
Oil Brent 56.4 2.710 2015-03-27T00:
Oil Nymex 48.9 -2.560 2015-03-27T00:
Silver Index 17.1 -0.071 2015-03-27T00:


Symbol Open High Last %
NZX 50 5833.2 5854.2 5833.2 0.36%
NASDAQ 4863.7 4899.3 4863.4 0.57%
DAX 11920.2 11954.1 11843.7 0.21%
DJI 17673.6 17729.1 17678.2 0.19%
FTSE 6895.3 6910.6 6895.3 -0.58%
HKSE 24727.5 24840.2 24486.2 1.32%
NI225 19295.2 19416.2 19285.6 0.55%