Why is the Xero share price slipping 6% today?

It's a painful day for the cloud accounting giant.

| More on:
A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.

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

Key points

  • After a few days of positivity, the Xero share price is back in the red
  • There was a sizeable fall in US tech shares overnight
  • Xero shares have dropped almost 50% since the beginning of 2022

The Xero Limited (ASX: XRO) share price is down almost 6% today with the cloud accounting provider losing some of the gains it's made over the last week.

At the time of writing, Xero shares were fetching $77.81 apiece, a 5.76% drop on yesterday's close.

Overnight, there was pain in the US tech sector. That's why the Betashares Nasdaq 100 ETF (ASX: NDQ) price is currently down by around 3%. Also last night, the Microsoft (NASDAQ: MSFT) share price dropped around 3% while Apple Inc (NASDAQ: AAPL) also dropped by around 3%.

There has been much volatility on share markets this year amid concerns about inflation and interest rates.

The Xero share price and other ASX tech shares are often influenced on a day-to-day basis by what happens in the US share market.

Wider ASX share market fall

It's not just Xero that is down. There are plenty of other shares that are in the red. The S&P/ASX 200 Index (ASX: XJO) is currently down 1.37%.

Blue chip shares Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are also down around 1% at the time of writing.

However, there are many others that are down much further. For example, the Carsales.com Ltd (ASX: CAR) share price is down 12% while Block Inc (ASX: SQ2) is down 6.77%.

Xero share price snapshot

Since the beginning of the 2022 calendar year, the Xero share price is down 44%.

The company has a current market capitalisation of around $11.7 billion.

Should you invest $1,000 in Beach Energy Limited right now?

Before you buy Beach Energy Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Beach Energy Limited 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 may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Tristan Harrison 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 Apple, BETANASDAQ ETF UNITS, Block, Inc., Microsoft, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS, Block, Inc., and Xero. The Motley Fool Australia has recommended Apple and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Bored man sitting at his desk with his laptop.
Share Fallers

Why Black Cat, CAR Group, Data#3, and Helia shares are falling today

These shares are ending the week in the red. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Bapcor, Fletcher Building, Inghams, and Yancoal shares are falling today

These shares are having a tough time on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Capital Raising

Why did this ASX All Ords defence stock crash 22% today?

Investors seem to be rather furious at this stock.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Breville, Flight Centre, Orica, and ResMed shares are dropping today

These shares are having a tough time on hump day. What's happening?

Read more »

A bored woman looking at her computer, it's bad news.
Share Fallers

Why Brickworks, Nickel Industries, Polynovo, and Qantas shares are sinking today

These shares are having a difficult time on Tuesday. But why?

Read more »

plummeting gold share price
Gold

This $3 billion ASX 200 gold stock just crashed 15%! Here's why

Investors are punishing the ASX 200 gold stock today. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Capricorn, CBA, Endeavour, and Polynovo shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Share Fallers

Why Appen, Mesoblast, Rio Tinto, and Woodside shares are falling today

These shares are falling more than most on Thursday. But why?

Read more »