Xero share price plummets 7% as tech sector struggles

Here’s what’s driving the Xero share price to a new 52-week low.
The post Xero share price plummets 7% as tech sector struggles appeared first on The Motley Fool Australia. –

The Xero Limited (ASX: XRO) share price is tumbling by more than 7% on Friday.

Its woes follow a disastrous session for the US stock market. That appears to be plaguing the S&P/ASX 200 Index (ASX: XJO) this morning with the index’s tech sector bearing the brunt.

At the time of writing, the Xero share price is $88.41, 7.13% lower than its previous close.

However, at its lowest point of the day so far the business and accounting software-as-a-service (SaaS) provider’s stock was trading at $87.89 – representing a 7.67% drop and a new 52-week low.

For comparison, the ASX 200 is currently down 2.52%.

Let’s take a closer look at what could be weighing on the SaaS provider’s stock today.

Xero share price sinks

The Xero share price is suffering on Friday after the Nasdaq Composite (NASDAQ: .IXIC) plunged 4.9% overnight.

The tech-heavy index was weighed down by some of its biggest names, with the NASDAQ-100 (NASDAQ: NDX) recording a 5% tumble.

That’s likely dragging on the S&P/ASX 200 Information Technology Index (ASX: XIJ). It has dumped a whopping 4.07% at the time of writing.

That makes it the worst-performing ASX 200 sector on Friday. Though, it’s worth noting that none of the ASX 200’s 11 sectors are trading in the green right now.

However, Xero’s stock isn’t the tech sector’s biggest weight today. That unfortunate crown is worn by Life360 Inc (ASX: 360) – its share price is exhibiting a 9.3% fall.

Looking to the broader ASX technology sector, the S&P/ASX All Technology Index (ASX: XTX) has dipped 4.15%. That leaves it almost 29% lower than it was at the start of 2022.

Though, that’s outperforming the Xero share price. The SaaS provider’s stock has fallen 39% year to date.

The post Xero share price plummets 7% as tech sector struggles appeared first on The Motley Fool Australia.

Should you invest $1,000 in Xero right now?

Before you consider Xero, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Xero wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Analysts rate these ASX growth shares as buys in May
Why are ASX tech shares having such a dire run on Monday?
Why is the Xero share price sinking 6% today?
Here’s why ASX 200 tech shares are having such a stellar end to the week
Why the Xero share price is a buy right now: experts

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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