It has been another busy week for many of Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Catapult Sports Ltd (ASX: CAT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this sports technology company’s shares with a trimmed price target of $4.50. Bell Potter is feeling positive about Catapult’s upcoming FY 2026 results. In fact, the broker suspects that Catapult could outperform EBITDA guidance and consensus estimates slightly. It then expects guidance for FY 2027 to be positive. In light of this, the broker continues to rate Catapult as its key pick in the tech sector amongst mid cap stocks. It also sees little risk of AI disruption for the stock given its extensive proprietary data, multiple product platform, and the hardware component to its solutions. The Catapult share price ended the week at $2.94.

Treasury Wine Estates Ltd (ASX: TWE)

A note out of Morgans reveals that its analysts have upgraded this wine giant’s shares to a buy rating with a $5.30 price target. The broker has been looking ahead to the Penfolds owner’s investor day event next month. It believes this event could be a key share price catalyst, with management detailing plans and targets for its portfolio and operating model. Combined with an encouraging trading update last month, Morgans is feeling more positive on the company’s outlook. So, with its shares trading on low trading multiples, the broker thinks now could be a good time to invest. The Treasury Wine share price is fetching $4.25 at the time of writing.

Xero Ltd (ASX: XRO)

Analysts at Macquarie have retained their buy rating on this cloud accounting platform provider’s shares with an improved price target of $235.80. According to the note, the broker was pleased with Xero’s performance in FY 2026 and particularly its accelerating growth in the key US market. Looking ahead, Macquarie sees potential for significant operating leverage as revenue scales across a largely fixed cost base. And while AI disruption concerns are lingering, the broker believes Xero’s proprietary customer data and ecosystem integration positions it well for the future. The Xero share price last traded at $79.67.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Xero shares rip 9% as investors buy the dip amid fifth day of outages
• Why are Xero shares turning heads today?
• Why EOS, Megaport, Racura, and Xero shares are racing higher today
• Billionaire buying sends this ASX 200 stock higher

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, Macquarie Group, Treasury Wine Estates, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, Macquarie Group, Treasury Wine Estates, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) ended the trading week on a sour note this Friday, with many ASX shares drifting lower over the session. After an early burst of optimism in morning trading, investors’ feet grew colder over the rest of the day, with the ASX 200 finishing up with a loss of 0.11%.

That leaves the index at 8,630.8 points as we head into the weekend.

This disappointing end to the Australian trading week comes after a far more optimistic trading day on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) was in a jolly mood, gaining a healthy 0.75% and once again cruising over 50,000 points.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was even more bullish, rising 0.88%.

Let’s get back to ASX shares now and dig a little deeper into what was going on with the different ASX sectors this Friday.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Xero shares rip 9% as investors buy the dip amid fifth day of outages
• Why are Xero shares turning heads today?
• The ASX 200 rebound has already faded. Here’s why
• Why EOS, Megaport, Racura, and Xero shares are racing higher today
• 3 ASX shares down over 60% that could be bargain buys

Motley Fool contributor Sebastian Bowen 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 WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australian technology shares have had a tough time recently.

The BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) remains down around 36% from its 52-week high, which tells us just how much sentiment has shifted.

But for long-term investors, I think that weakness could be an opportunity.

This BetaShares ETF gives investors exposure to a basket of ASX technology shares rather than asking them to pick just one winner. That can be useful in a sector where share prices can move sharply and individual company risks can be high.

What does this BetaShares ETF own?

This ETF is designed to provide exposure to Australian technology shares across software, data centres, digital platforms, cloud technology, and other tech-related industries.

One of the key holdings is Xero Ltd (ASX: XRO).

Xero provides cloud accounting software for small businesses, accountants, and bookkeepers. I like the long-term opportunity because small businesses are becoming more digital, and Xero can help them manage invoicing, payroll, payments, reporting, and cash flow in one place.

Another major holding is NextDC Ltd (ASX: NXT).

NextDC develops and operates data centres. That gives investors exposure to the infrastructure behind cloud computing, artificial intelligence, cybersecurity, and the broader growth in data usage. I think this is an attractive area because the digital economy needs more capacity, not less.

TechnologyOne Ltd (ASX: TNE) is another important name in the portfolio.

It provides enterprise software to customers such as government, education, and large organisations. These customers often need dependable systems for essential operations, which can make revenue sticky. TechnologyOne has also been expanding in the UK, giving it another long-term growth opportunity.

Exposure beyond the obvious names

This BetaShares ETF also gives investors exposure to smaller technology shares that could add useful growth potential.

Codan Ltd (ASX: CDA) is one example. It has exposure to communications, metal detection, and defence-related technology.

SiteMinder Ltd (ASX: SDR) is another. It provides hotel commerce software, helping accommodation providers manage bookings, distribution, and revenue opportunities across digital channels.

Megaport Ltd (ASX: MP1) also brings something different. Its network-as-a-service platform helps businesses connect to cloud providers and data centres more flexibly.

Why I like it after the fall

The 36% decline from the BetaShares S&P/ASX Australian Technology ETF’s 52-week high shows the risk of investing in tech shares.

Higher interest rates, weaker sentiment toward growth stocks, and concerns about valuations can all weigh heavily on this part of the market.

But I think the long-term themes remain attractive.

Businesses are still moving more operations to the cloud. Data demand is still growing. Software is still becoming more important. And Australian companies still need better digital tools to operate efficiently.

This BetaShares ETF gives investors a simple way to access those themes without having to decide whether Xero, NextDC, TechnologyOne, or another holding will be the best performer.

Foolish takeaway

The BetaShares S&P/ASX Australian Technology ETF will not suit every investor.

It is more concentrated and higher risk than a broad Australian share market ETF, and technology shares can remain volatile when interest rates and valuations are in focus.

But after a 36% fall from its 52-week high, I think the risk-reward looks more interesting.

For Aussie investors who want exposure to local technology leaders and emerging growth names, the BetaShares S&P/ASX Australian Technology ETF could be a strong buy for the long term.

The post Why this BetaShares ETF could be a strong buy for Aussie investors appeared first on The Motley Fool Australia.

More reading

• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• Where to invest $2,000 in ASX ETFs
• Here’s why I think ASX growth investors should embrace index investing in 2026
• Why these ASX ETFs could be top picks in May
• After 7 straight days in the red, where is the value for ASX 200 stocks?

Motley Fool contributor Grace Alvino has positions in Codan. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, SiteMinder, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended SiteMinder and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Catalyst Metals Ltd (ASX: CYL) has had a rough month, and Friday is not giving shareholders much relief.

The ASX gold stock is trading 2.99% lower at $5.685 at the time of writing, despite the company releasing new drilling results from its Plutonic Gold Belt.

The latest fall means Catalyst shares are now down around 15% over the past month and 22% in 2026.

That pullback has taken some heat out of a stock that had previously attracted plenty of interest from gold investors.

Here are the details of the announcement.

More drilling at Old Highway

In its ASX release, Catalyst reported new drilling results from Old Highway, an undeveloped gold project near its Plutonic processing plant in Western Australia.

Old Highway sits about 40 kilometres south-west of the plant and already has a resource of 206,000 ounces at 3 grams per tonne gold.

It also has a reserve of 140,000 ounces at 3.2 grams per tonne gold. This supports an initial 4-year mine life at 35,000 ounces a year from the Zone 400 deposit.

The latest drilling was aimed at testing extensions outside the current resource envelope.

Results included 6 metres at 4.1 grams per tonne gold, 5 metres at 4.7 grams per tonne gold, and 2 metres at 17.4 grams per tonne gold.

Catalyst also reported other hits, including 12 metres at 3.7 grams per tonne gold, 5 metres at 3.7 grams per tonne gold, and 2 metres at 9.1 grams per tonne gold.

The company said some of these results fill the gap between deeper drilling and the shallower hits reported in February.

What Catalyst is trying to build

Old Highway is part of the company’s broader plan to grow production from the Plutonic Gold Belt.

Catalyst currently produces about 100,000 ounces of gold a year from the belt. Its longer-term plan is to lift that to around 200,000 ounces a year by adding new sources of ore.

Management said the Old Highway development plan will mirror Trident, starting with a small, self-funded open pit before moving into a longer-life underground mine.

These deposits also sit close to an existing processing plant, which could help lower development costs compared with building a new operation from scratch.

Foolish Takeaway

The drilling update looks solid, but it hasn’t been enough to change the direction of the share price today.

Nonetheless, the business still has plenty working in its favour. It is producing gold, generating cash, and trying to build a larger mine plan around the Plutonic Gold Belt.

After a 15% fall in a month, I think the selling looks a bit harsh. Catalyst is still drilling around deposits that could feed an existing processing plant.

The post This ASX gold stock is down 15% in a month. Here’s what just happened appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares predicted to double over 12 months
• This ASX gold stock is climbing today after a big drilling update
• This ASX 200 gold miner is rising on big news
• 2 ASX mining shares to buy: experts

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

The S&P/ASX 200 Index (ASX: XJO) is having a subdued finish to the week. In afternoon trade, the benchmark index is down 0.15% to 8,627.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Alkane Resources Ltd (ASX: ALK)

The Alkane Resources share price is down 4% to $1.51. Investors have been selling this gold miner’s shares following the release of its third-quarter result. Alkane delivered record revenue of $274.4 million for the three months ended 31 March 2026. Net profit increased to a record $93 million, which is up materially on the $8.1 million it reported in the prior corresponding period. The company’s managing director, Nic Earner, said: “Alkane has just delivered the strongest quarter in its history. During a period of high gold and antimony prices, the power of our three mine portfolio delivered exceptional operating results as they produced a record 44,669 ounces of gold and 377 tonnes of antimony, which generated record profit after taxes of $93 million.” This has been overshadowed by broad weakness in the gold industry today.

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down a further 5.5% to 39.7 cents. This auto parts retailer’s shares have been sold off this week following the release of another disappointing update. Bapcor revealed that its performance in the second half of FY 2026 has been negatively impacted by the Middle East conflict. This means that it now expects underlying EBITDA in the range of $144 million to $150 million, which is down from its previous guidance of $150 million to $160 million. Bapcor’s CEO, Chris Wilesmith, commented: “We are pleased with the positive momentum of the turnaround, which has been delivered through decisive actions we’ve taken to improve pricing, stock availability and team engagement. This is despite the challenging external environment which was not contemplated when we began this turnaround, and which has slowed the rate of improvement contemplated in our previous guidance.”

PLS Group Ltd (ASX: PLS)

The PLS share price is down 6.5% to $5.97. This is despite there being no news out of the lithium miner on Friday. However, it is worth noting that lithium stocks on Wall Street tumbled overnight. This appears to have led to ASX lithium stocks following suit today. Despite this decline, PLS shares are still up around 270% since this time last year.

Resolute Mining Ltd (ASX: RSG)

The Resolute Mining share price is down almost 7% to $1.30. Investors have been selling this gold miner’s shares after it was forced to retract an announcement from earlier this week relating to a scoping study. It said: “Following consultation with ASX, the Company has been advised that it did not have a reasonable basis for those forward-looking statements due to the reliance on inferred resources in the production targets, resulting in the published production targets and forecast financial information being inconsistent with the requirements of the ASX Listing Rule 5.16 6.”

The post Why Alkane Resources, Bapcor, PLS, and Resolute Mining shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 200 stock is dropping despite record quarterly profit
• This ASX gold stock just hit pause after a 12% weekly jump
• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today
• Why on earth is the Bapcor share price crashing 21% on Thursday?
• Up 142% in a year, ASX 200 gold stock lifting today on potential fourth operating mine

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

The Xero Ltd (ASX: XRO) share price is the fastest riser on the S&P/ASX 200 Index (ASX: XJO) on Friday.

Xero shares are up 9.2% to $80.49 as investors buy the dip after an 11.6% smashing yesterday.

The accounting software-as-a-service (SaaS) provider has had a turbulent week.

There has been volatile post-results trading and continuing intermittent outages on its platform.

Xero shares fell dramatically yesterday after the company released its full-year FY26 results.

Investors were displeased with the 27% fall in net profit after tax (NPAT), which was largely due to the acquisition costs for US payments platform, Melio.

The profit was NZD$167.4 million, supported by a 31% increase in operating revenue to NZD$2.75 billion.

Also, top broker Morgans said investors did not take comfort “with commentary around AI disruption risk versus reward“.

Xero’s FY26 results came one day after a changing of the guard for ASX 200 tech shares.

Xero overtook logistics SaaS provider Wisetech Global Ltd (ASX: WTC) as the No. 1 tech company by market cap on Wednesday.

Today, Xero has a market cap of AU$12.56 billion, while Wisetech shares are worth AU$12.32 billion.

What’s happening with Xero shares on Friday?

Xero shares are also being supported today by a strong lead from Wall Street overnight.

The Nasdaq Composite Index (NASDAQ: .IXIC) hit a new record high, largely due to advances in AI-related stocks.

Meanwhile, Xero customers have been frustrated by several intermittent platform outages since last Thursday.

According to the Xero website, another outage occurred at 11.20am today but only lasted for a few minutes.

On its System Status page, Xero said:

We’re aware of an outage affecting customers between 12:21 and 12:24 AM UTC. Xero is now stable and operating normally.

We’re sorry for the disruption, particularly given the recent outages.

Our engineering team is monitoring closely and will update this page if anything changes.

Xero also told customers that one of its recent outages was caused by a third-party hardware incident.

What’s next for Xero?

Xero is focusing on expansion in the United States, with the Melio acquisition a core part of this strategy.

The company says the US is its fastest-growing market, with revenue up 240%, or 30% on a pro-forma basis, in FY26.

In an interview with Dow Jones Newswires, Xero CEO Sukhinder Singh Cassidy said the company would target accountants and bookkeepers in more US cities in FY27.

She said:

It needs to step up to more city coverage so we can approximate something that looks like more national coverage versus just select cities.

Xero announced an additional US$50 million investment in its brand in the US for FY27.

Broker reaction to FY26 results

Morgan Stanley, Ord Minnett, Morgans, and UBS all reiterated their buy ratings on Xero shares after reviewing the FY26 report.

Their 12-month price targets are $130, $110, $111, and 127 per share, respectively.

Morgans commented:

XRO reported a better-than-expected FY26 result and FY27 outlook. Earnings momentum continues to improve relative to consensus expectations. Management were confident enough to announce a buy-back and hint at potential capital management in FY28.

However, investors didn’t take comfort with commentary around AI disruption risk versus reward.

Management has a plan to maximise the opportunity set (TAM) ahead of a path to AI monetisation. It’s early days in AI and the path to AI driven value creation will become clearer, over time.

The post Xero shares rip 9% as investors buy the dip amid fifth day of outages appeared first on The Motley Fool Australia.

More reading

• Why are Xero shares turning heads today?
• Why EOS, Megaport, Racura, and Xero shares are racing higher today
• 3 amazing ASX growth shares to buy and hold forever
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• 3 reasons I would buy Xero shares following its results

Motley Fool contributor Bronwyn Allen 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 WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shaw and Partners recently hosted its TechRise Conference where emerging ASX technology companies presented on their outlook.

I’ve had a look at a couple of the companies which the broker has flagged as having high potential for solid share price gains.

Let’s have a look at what they’re saying.

Readytech Holdings Ltd (ASX: RDY)

This company provides cloud-based software-as-a-service products to the education, workforce, government and justice sectors.

The $170 million company posted first half revenues of $61.6 million, up 5.6%, with 84% of this coming in the form of subscription revenues.

Shaw and Partners said in their research note that Chief Executive Officer Marc Washbourne provided a “confident” update at the TechRise conference.

They added:

Management reaffirmed FY26 guidance, noting improving H2 pipeline conversion, stabilising churn and growing confidence margins have bottomed out. Incrementally, management became more explicit around portfolio rationalisation, while also positioning AI-driven engineering productivity and Orqestra’s orchestration layer as potential step change enablers of faster development, lower costs and structurally improved margins over time.

Orqestra is an AI product which customers can use to, “access trusted insights through natural language prompts within their existing workflows, reducing reliance on traditional reporting and enhancing decision velocity” according to Readytech.

Shaw and Partners has a buy recommendation on Readytech shares and a $2.80 price target, compared with $1.34 currently.

Readytech shares have traded as high as $2.80 over the past 12 months.

Kinatico Ltd (ASX: KYP)

Kinatico shares are trading towards the lower end of their range over the past 12 months, but if the Shaw and Partners team are on the money, this is a buying opportunity.

The company provides software which businesses use to stay compliant across workforce management, and is also a software-as-a-service provider.

A key point from the company’s TechRise presentation, Shaw said, was that the business had done the hard work building their platform, and could now reap the benefits.

As they said:

Commentary … reinforced the significant operating leverage potential of the platform, with management stating the business could ‘double revenue and not change operating headcount,’ while pushing back on ‘SaaSpocalypse’ concerns by positioning AI as a structural benefit underpinned by KYP’s trusted compliance data and AI native architecture. AI-driven productivity gains are increasingly framed as a medium-term “step change” opportunity rather than theoretical upside

Shaw and Partners has a price target on Kinatico shares of 38 cents compared with 16 cents currently.

Kinatico is valued at $72.2 million.

The post These 2 ASX technology stocks could jump more than 100%: Expert appeared first on The Motley Fool Australia.

More reading

• 2 ASX small-cap stocks tipped to double in the next year

Motley Fool contributor Cameron England 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 ReadyTech. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A major contract renewal is giving investors another reason to buy this infrastructure services stock on Friday.

Ventia Services Group Ltd (ASX: VNT) shares are up 2.03% to $6.02 at the time of writing.

The move adds to a strong recent run for shareholders. Ventia shares are now up around 20% over the past month and 30% over the past year.

The stock is also back above $6, leaving it closer to its January highs of $6.41 after a choppy few months.

So, what was announced?

$405 million contract renewal

In its ASX release, Ventia announced the renewal of its maintenance services contract with Yarra Valley Water.

The 9-year contract is worth $405 million and covers a range of essential water infrastructure services.

This includes consolidated sewerage service contracts, sewerage and water network reactive maintenance, and mechanical and electrical planned and reactive maintenance.

Under Yarra Valley Water’s new delivery model, two strategic partners will manage maintenance services across the north and south regions.

Ventia has secured the south region, which keeps the company involved in a key part of Yarra Valley Water’s network.

The new partnership arrangements are expected to begin in October 2026.

Another long-term deal locked in

The sizeable contract gives Ventia another reliable stream of contracted work in an essential services market.

The work also sits in water and sewerage maintenance, where spending is not easy to delay or cut.

The customer relationship is also worth noting. Ventia has been working with Yarra Valley Water since 2015, so this renewal keeps an existing contract running for many more years.

Managing Director and Group CEO Dean Banks said the renewal reflected the company’s proven record as a strategic partner.

He also pointed to asset management and service delivery as areas where Ventia has built experience.

Momentum has been building

The contract renewal lands at a good time for Ventia.

The share price has already been moving higher, with the stock up around 20% in a month and 30% over the past year.

That tells us investors were already warming to the business before today’s announcement.

Ventia provides services across defence, social infrastructure, water, electricity and gas, resources, telecommunications, and transport.

That gives the company exposure to several large end markets across Australia and New Zealand.

Many of those areas are tied to essential infrastructure, which is part of the reason the stock has been getting more attention.

The post A long-term contract win is lifting this ASX 200 stock today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• This ASX 200 stock just jumped 13% in a week. Here’s why
• Ventia Services secures $340m Victorian road maintenance contracts
• Here are the top 10 ASX 200 shares today

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

Shares in Xero Ltd (ASX: XRO) are roaring back to life on Friday.

During afternoon trade, the ASX tech stock surged 9.5% to $80.69 as investors piled back into the beaten-down software giant following Thursday’s brutal sell-off.

Even after today’s strong rebound, Xero shares remain down around 29% year to date and roughly 53% over the past 12 months at the time of writing. That is a dramatic underperformance compared to the benchmark S&P/ASX 200 Index (ASX: XJO), which has gained about 5% over the same period.

So, why are investors suddenly warming to the tech stock again?

Classic relief rally

The biggest driver for Xero shares today appears to be a classic relief rally.

On Thursday, investors aggressively dumped Xero shares. They reacted negatively to concerns around profitability and falling margins tied to the company’s major US expansion push and integration costs associated with its acquisition of Melio.

But after the initial panic selling faded, the market seems to have refocused on the stronger parts of Xero’s latest result — and there were plenty of positives hiding beneath the surface.

Revenue for the year surged 31% to NZ$2.75 billion. It shows that customer demand for the company’s accounting software platform remains very strong.

Cracking the US market

Subscriber growth also continued accelerating, particularly in the US, where organic growth reportedly climbed 30%. That is significant because cracking the massive US small-business market has long been seen as one of Xero’s biggest long-term growth opportunities.

The company also delivered strong recurring revenue growth, with annualised recurring revenue jumping 37%.

Importantly, management’s FY27 outlook also appears to have reassured investors. Xero’s guidance points toward another year of roughly 34% revenue growth. It suggests the company still sees substantial momentum ahead despite ongoing macroeconomic uncertainty.

Artificial intelligence also seems to become a bigger part of the investment story. Management highlighted growing adoption of AI-powered tools including its “Just Ask Xero” assistant, alongside partnerships with OpenAI and Anthropic.

Those initiatives should improve automation, boost productivity, and deepen customer engagement across the platform.

What next for Xero shares?

Another factor likely supporting today’s rally was Xero’s announcement of a NZ$550 million share buyback. Buybacks are often interpreted as a sign management believes the market has become overly pessimistic about the company’s valuation.

And after a 53% share price collapse over the past year, investors may finally be starting to view Xero shares as oversold.

Of course, risks still remain. The company continues investing heavily in growth, particularly in the US. Investors will want evidence that margins can eventually stabilise and recover. Tech sector volatility also remains elevated more broadly.

Still, today’s powerful rebound suggests many investors believe the market may have overreacted to Thursday’s sell-off. And that Xero’s long-term growth story remains very much intact.

The post Why are Xero shares turning heads today? appeared first on The Motley Fool Australia.

More reading

• The ASX 200 rebound has already faded. Here’s why
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• 3 amazing ASX growth shares to buy and hold forever

Motley Fool contributor Marc Van Dinther 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 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.

After starting Friday with a decent lift, the S&P/ASX 200 Index (ASX: XJO) has given back its early gains during afternoon trade.

At the time of writing, the ASX 200 is down 0.09% to 8,633 points.

The index is only down slightly, but it has moved around a lot today. It climbed as high as 8,691.9 points earlier in the day before falling as low as 8,610.3 points.

That leaves the ASX 200 tracking another soft finish in what has already been a difficult stretch for local shares.

Over the past month, the index has recorded just 5 sessions in the green, with the remaining days ending in the red.

So, what has caused the early buying to fade again?

Oil keeps investors nervous

Oil has been one of the main pressure points for the market today.

Brent crude futures pushed above US$106 a barrel as investors continued to watch the Strait of Hormuz and the risk of supply disruption.

Reuters reported that oil prices rose as concerns continued around security threats to shipping in the key waterway.

Trading Economics also showed Brent crude up more than 1%, with the oil price heading for a weekly gain of around 5%.

After a choppy month for the ASX 200, another jump in oil gives investors less reason to chase the early rebound.

Bank gains offset mining weakness

Commonwealth Bank of Australia (ASX: CBA) is up 2.64% to $160.55, which is giving the index some support after a rough week for the banks.

Westpac Banking Corp (ASX: WBC) is up 0.76% to $35.99, while National Australia Bank Ltd (ASX: NAB) is 0.14% higher at $36.47.

ANZ Group Holdings Ltd (ASX: ANZ) is also up 1.12% to $35.23, and Macquarie Group Ltd (ASX: MQG) is 0.15% higher at $244.89.

Those gains are helping cushion the index, but the big miners are pulling in the other direction.

BHP Group Ltd (ASX: BHP) is down 2.59% to $60.45, Rio Tinto Ltd (ASX: RIO) is dipping 2.71% to $186.77, and Fortescue Ltd (ASX: FMG) is sliding 2.20% to $22.49.

The market is still fragile

The ASX 200 is now down 0.93% in 2026 and 3.76% over the past month.

It is still up 4.05% over the past year, but that longer-term gain does not hide the recent weakness.

There have been a few rebounds along the way, but the market has struggled to hold them.

Today’s early lift has yet again followed the same path, with buyers unable to hold the index higher by afternoon trade.

With oil, inflation worries, and heavyweight stocks still driving the daily moves, the market doesn’t look settled yet.

The post The ASX 200 rebound has already faded. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.