After a sharp sell-off in May and a struggle to push above $145.00, Xero shares are breaking out.
The post It’s been a great week for the Xero (ASX:XRO) share price appeared first on The Motley Fool Australia. –
The Xero Limited (ASX: XRO) share price has been a standout performer this week, rallying 6.34% to $150.65.
Why the Xero share price is pushing higher
Xero has not made any market sensitive announcements since its FY21 results on 13 May.
Despite the lack of company-related news to drive its share price, Xero shares are likely influenced by the positive gains made by the S&P/ASX 200 Index (ASX: XJO) and more specifically, the tech sector.
The ASX 200 set a new record this week, crossing 7,500 for the first time on Monday and running as high as 7,526.4 on Thursday.
The S&P/ASX 200 Info Tech (INDEXASX: XIJ) has also been a big winner this week. It surged 13.35% to a 7-month high.
On Wall Street, the tech-heavy Nasdaq Composite closed at a new all-time high on Thursday night, rallying 0.78% to 14,895.12.
The Xero share price is likely influenced by the bullish performance of major indices and positive buying across the tech sector.
Xero bounces back after May earnings crash
The Xero share price has been in full recovery mode after sliding 16.8% from $135.31 to $112.50 between 12 and 14 May. This occurred following the release of its full-year FY21 results.
As previously reported by The Motley Fool, Xero’s FY21 revenue of NZ$848.8 million was a touch short of market consensus estimates of NZ$854 million.
More recently, brokers are bullish on the outlook of Xero shares. Goldman Sachs has retained its buy rating and $165.00 target price on Thursday.
When does Xero report its results?
Xero follows a different reporting timeline than the usual February half-year and August full-year results that investors are accustomed to.
Xero typically reports its half-year results in the second week of November and its full-year results in the second week of May.
Meantime, investors can sit back and enjoy what a stellar week it has been for the accounting software company.
At the time of writing, the Xero share price is 1.04% higher to $150.65.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.