As most ASX investors would be aware, the month just gone was not an especially pleasing one for ASX investors or the S&P/ASX 200 Index (ASX: XJO). June saw the ASX 200 lose almost 9% of its value. But what of the Xero Limited (ASX: XRO) share price?
Xero is one of the most popular ASX growth shares on the market. The online accounting software company has delighted investors in the past with impressive share price rises. Over 2020, Xero shares appreciated by a pleasing 80% or so.
But the company has been struggling since 2020. Over this year so far, Xero has lost close to half of its value. So with this in mind, how did Xero go over June?
Image source: Getty Images
From hero to Xero for share price
Well, as one might guess, it wasn't a particularly uplifting month for the Xero share price. The company began June at a price of $89.29 but closed at just $76.96 on Thursday. That means Xero recorded a loss of 13.8% over the month, a marked underperformance of the broader ASX 200.
This was despite the absence of any news or announcements out of Xero over June. So it's likely the nasty falls Xero shares experienced were purely driven by the investor apathy towards tech shares that we saw during the month.
Many other ASX tech shares experienced similar falls over the period. For example, WiseTech Global Ltd (ASX: WTC) lost more than 10%, while Block Inc (ASX: SQ2) sunk by more than 28%. Zip Co Ltd (ASX: ZIP) had a shocker, falling by more than 52%.
But it might not be all bad news for Xero investors. As my Fool colleague James covered last week, ASX broker Morgans has just come out with an "add" rating on the Xero share price.
Morgans sees Xero as "a high-quality company, with strong growth potential in an industry with high barriers to entry". It has given the company a 12-month share price target of $90.25, which implies a potential upside of more than 16% from recent pricing.
So perhaps the Xero share price has far more exciting things in front of it than it left behind in June. But we shall have to wait and see.
