The Xero Ltd (ASX: XRO) share price closed well in the red on Tuesday amid a rough day for ASX tech shares.

At market close , Xero shares finished at $83.00 each, a 5.71% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) finished 0.56% lower today.

So why did Xero have such a tough day on the market today?

Xero shares close lower

Xero shares struggled today but they were not alone. The S&P/ASX All Technology Index (ASX: XTX) also closed 2.2% in the red.

Other ASX tech shares that took a hit included Megaport Ltd (ASX: MP1), down 4.29%, and Wisetech Global Ltd (ASX: WTC), down 4.91%. Meantime, Altium Ltd (ASX: ALU) shares fell 1.09% while Block Inc (ASX: SQ2) descended 2.93%.

Xero is a New Zealand technology company with a global presence providing accounting software to small and medium-sized businesses.

Today’s fall follows a tough night on US markets. The technology-heavy NASDAQ fell 1.46% on Monday’s trade, while the S&P 500 dropped 0.84%. Apple Inc (NASDAQ: AAPL) shares dropped on the back of a Reuters report that the tech giant plans to slow hiring and spending next year.

Nonetheless, Citi has a buy rating on Xero’s shares with a $108 price target. Citi recently said:

We see Xero’s decision to increase prices in ANZ and UK as an indication of the company’s confidence in its position in its core markets.

Goldman Sachs also has a buy rating on the company’s shares with a $113 price target.

Share price snapshot

Xero shares have declined 40% in the past year while they have fallen nearly 42% year to date.

In the past week, the company’s share price has dropped 1.5% although it’s gained nearly 13% in a month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has slid about 9% in the past year.

Xero has a market capitalisation of about $12.4 billion based on today’s share price.

The post Why did the Xero share price have such a lousy session today? appeared first on The Motley Fool Australia.

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More reading

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Monica O’Shea 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 Altium, Block, Inc., Goldman Sachs, MEGAPORT FPO, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended MEGAPORT FPO. 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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