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 0.7562 0.0026 0.35%
AUD 0.9662 0.0006 0.06%
EUR 0.6731 0.0000 0.00%
GBP 0.4904 0.0014 0.29%
HKD 5.8636 0.0185 0.32%
JPY 90.2350 0.2530 0.28%


Commodity Price Change Time
Gold Index 1209.6 4.680 2015-02-26T00:
Oil Brent 60.0 0.310 2015-02-26T00:
Oil Nymex 48.3 -2.720 2015-02-26T00:
Silver Index 16.6 0.150 2015-02-26T00:


Symbol Open High Last %
NZX 50 5861.7 5878.5 5861.7 0.29%
NASDAQ 4969.3 4989.1 4967.1 0.42%
DAX 11337.1 11353.2 11327.2 -0.10%
DJI 18224.4 18239.4 18224.6 -0.06%
FTSE 6949.7 6960.0 6949.7 -0.15%
HKSE 24902.6 25102.0 24902.1 -0.32%
NI225 18844.3 18865.4 18785.8 0.06%