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

Forex

Sym Price Change
USD 0.6454 0.0000 0.00%
AUD 0.9021 0.0000 0.00%
EUR 0.5771 0.0000 0.00%
GBP 0.4195 0.0000 0.00%
HKD 5.0087 0.0000 0.00%
JPY 78.6100 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1133.3 8.610 2015-08-28T00:
Oil Brent 50.0 7.240 2015-08-28T00:
Oil Nymex 45.2 2.730 2015-08-28T00:
Silver Index 14.5 0.120 2015-08-28T00:

Indices

Symbol Open High Last %
NZX 50 5634.9 5688.3 5634.9 0.63%
NASDAQ 4792.1 4836.8 4812.7 0.32%
DAX 10335.9 10336.9 10315.6 -0.17%
DJI 16649.4 16670.0 16654.8 -0.07%
FTSE 6192.0 6247.9 6192.0 0.90%
HKSE 22424.4 22424.4 21838.5 -1.04%
NI225 18908.7 19192.8 18574.4 3.03%