Xero plunges to below $15
The software stock has slumped 6.4% today down to a two-year low of $14.05.
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Xero's [NZX: XRO] share price slumped below $15 for the first time in two years today, probably as a result of general weakness in global equity markets.
The software stock has plunged 6.4% today down to $14.05, the first time it has been below $15 since May 2013.
It reached a peak of $44.79 in March last year.
The stock may be getting a hammering partly due to the New Zealand market being affected by heavy losses on world stock markets, driven by fears about China's slowing economy.
The Shanghai Composite Index has plunged by 8% this afternoon alone, and the NZX 50 is down 2.4% today, heading for the biggest daily decline since October 2011.
Xero is next due to update investors on its market progress when it releases its half-year financial results in October.
The company has released a payroll function in seven of the largest US states but looks likely to miss its target of launching payroll in all 50 states by year end.
However, Craigs Investment Partners analyst Stephen Ridgewell told the National Business Review earlier this month he is still convinced Xero can become the strong No 2 player in the US software market – although he thought the shares were too expensive.
Today, First NZ Capital head of institutional research Arie Dekker offered the wider context that "The market is well off today and some of the growth stocks harder hit."
Xero chief executive Rod Drury tweeted earlier today: "Pretty happy with advice from Board to load up on cash as the markets tumble. @Xero can just keep growing. Cloud remains exciting space."
He also sent NBR the brief message that the share price fall is "Nothing to do with what we're doing."
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Mon, 24 Aug 2015
Mon, 24 Aug 2015
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Xero plunges to below $15
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