Xero falls 9% to five-month low

Xero CEO Rod Drury

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.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7282 -0.0001 -0.01%
AUD 0.9496 0.0030 0.32%
EUR 0.6481 -0.0008 -0.12%
GBP 0.5610 0.0025 0.45%
HKD 5.6459 0.0007 0.01%
JPY 73.9540 0.4370 0.59%

Commods

Commodity Price Change Time
Gold Index 1319.6 -1.410 2016-09-29T00:
Oil Brent 49.8 0.570 2016-09-29T00:
Oil Nymex 47.8 0.780 2016-09-29T00:
Silver Index 19.2 0.070 2016-09-29T00:

Indices

Symbol Open High Last %
NZX 50 7343.4 7343.4 7343.4 -0.14%
NASDAQ 5311.3 5317.0 5318.5 -0.93%
DAX 10545.6 10575.3 10438.3 -0.31%
DJI 18322.9 18366.2 18339.2 -1.07%
FTSE 6849.4 6941.1 6849.4 1.02%
HKSE 23435.3 23483.5 23739.5 -1.22%
NI225 16474.5 16480.0 16693.7 -1.55%
ASX 5471.3 5471.3 5471.3 -0.71%