Xero's share price slips
Xero's share price slipped 4.2 per cent on the NZX today, with one analyst blaming a broader sell-off of cloud-based software stocks that began in the United States for its recent softness.
The company's share price lifted slightly on Friday after Xero met its annual sales target by reporting an 83 per cent revenue uplift. But Xero shares resumed their downward slide today and are now 22 per cent off their record intra-day high of $45.99.
One analyst said cloud-software firms had been under the gun in the United States for the past two weeks, though the cause was indistinct.
Business software firm Workdays, which had fallen 20 per cent over the past fortnight and is valued on the New York Stock Exchange at US$14 billion, illustrated the trend, he said.
Woodward Partners analyst Nick Lewis forecast on Friday that Xero shares could fall below $20 if it failed to crack the US market, but Xero founder Rod Drury responded it was far too early to tell about the US and he was optimistic.
Forsyth Barr analyst Andrew Harvey-Green said weakness on the Nasdaq exchange on Friday was more likely to be behind today's share-price drop than any delayed reaction to Xero's announcement on Friday.
Xero's shares were down $1.60 at $36.20 in early afternoon trading on a volume of 187,000 shares changing hands.