The Xero Limited (ASX: XRO) share price is taking a beating today.
In early afternoon trade shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider are down 2.2% to $73.13 per share.
Thatâs a big improvement from this morning though, when the Xero stock was down 4.9%.
So whatâs going on with the ASX tech share?
What are ASX 200 investors considering on Tuesday?
To be fair, itâs not just the Xero share price thatâs deep in the red today.
Logistics software provider WiseTech Global Ltd (ASX: WTC), as one example, is down 1% at this same time.
While the ASX 200 is down 0.1%, the information and technology sector is trailing the market, as witnessed by the 1.1% decline in the S&P/ASX 200 Information Technology Index (ASX: XIJ).
With no price-sensitive news hitting the markets, the Xero share price and the wider IT sector look to be under pressure following steep overnight losses on the Nasdaq Composite (NASDAQ: .IXIC).
With investors again fretting about the next tightening move from the US Federal Reserve, the tech-heavy index plunged 1.9% by the closing bell.
Is the Xero share price a buy now?
Xero stock is down a painful 50% in 2022 as the company got slammed by fast-rising interest rates.
But at $73.07 per share, does Xero represent a buying opportunity?
According to Goldman Sachs, the answer is yes.
Across its range of IT services, Xero currently has 3.3 million global subscribers.
But labelling Xero shares as a âcompelling global growth storyâ, Goldman points out the company has a total addressable market of some 45 million subscribers.
Goldman has a buy rating on the company with a target of $115.00 for the Xero share price. While thatâs well below the $146.22 per share Xero was trading for back on 4 January, it represents a 57% increase from the current price.
The post Why is the Xero share price being trashed on Tuesday? appeared first on The Motley Fool Australia.
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More reading
- Buy Xero and this ASX growth share for 2023: analysts
- Top brokers name 3 ASX shares to buy next week
- Morgans names 2 of the best ASX 200 shares to buy in December
- Here are the top 10 ASX 200 shares today
- Why Appen, Evolution Mining, Rio Tinto, and Xero shares are racing higher
Motley Fool contributor Bernd Struben 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.
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