It's been a great week for the Xero (ASX:XRO) share price

After a sharp sell-off in May and a struggle to push above $145.00, Xero shares are breaking out.

| More on:
Man holding phone celebrating share price rise

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Gainers

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Share Gainers

3 ASX 300 shares going gangbusters on Wednesday

Investors are bidding up these three ASX 300 shares today. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a huge Tuesday for ASX shares, with the index resetting its record high.

Read more »