Xero share price plummets 7% as tech sector struggles

a person holds their head in their hands as they slump forward over a laptop computer which features a thick red downward arrow zigzagging downwards across the screen.a person holds their head in their hands as they slump forward over a laptop computer which features a thick red downward arrow zigzagging downwards across the screen.

The Xero Limited (ASX: XRO) share price is tumbling by more than 7% on Friday.

Its woes follow a disastrous session for the US stock market. That appears to be plaguing the S&P/ASX 200 Index (ASX: XJO) this morning with the index’s tech sector bearing the brunt.

At the time of writing, the Xero share price is $88.41, 7.13% lower than its previous close.

However, at its lowest point of the day so far the business and accounting software-as-a-service (SaaS) provider’s stock was trading at $87.89 – representing a 7.67% drop and a new 52-week low.

For comparison, the ASX 200 is currently down 2.52%.

Let’s take a closer look at what could be weighing on the SaaS provider’s stock today.

Xero share price sinks

The Xero share price is suffering on Friday after the Nasdaq Composite (NASDAQ: .IXIC) plunged 4.9% overnight.

The tech-heavy index was weighed down by some of its biggest names, with the NASDAQ-100 (NASDAQ: NDX) recording a 5% tumble.

That’s likely dragging on the S&P/ASX 200 Information Technology Index (ASX: XIJ). It has dumped a whopping 4.07% at the time of writing.

That makes it the worst-performing ASX 200 sector on Friday. Though, it’s worth noting that none of the ASX 200’s 11 sectors are trading in the green right now.

However, Xero’s stock isn’t the tech sector’s biggest weight today. That unfortunate crown is worn by Life360 Inc (ASX: 360) – its share price is exhibiting a 9.3% fall.

Looking to the broader ASX technology sector, the S&P/ASX All Technology Index (ASX: XTX) has dipped 4.15%. That leaves it almost 29% lower than it was at the start of 2022.

Though, that’s outperforming the Xero share price. The SaaS provider’s stock has fallen 39% year to date.

The post Xero share price plummets 7% as tech sector struggles appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 Life360, Inc. and 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.

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