The Fairfax Media is reporting that prime minister Scott Morrison is set to announce a plan to create a $1 billion public private small business investment fund that could help create an additional 250,000 small businesses in Australia.
If the prime minister’s plan goes ahead it could prove a small positive for Xero Limited (ASX: XRO) in that it would have more potential customers in Australia. However, this is a long bow to draw and there’s another reason the stock hit a record high of $52.80 today.
It’s the outrageous performance of junior enterprise and cloud facing software-as-a-service stocks in the U.S. that remains the hot growth story for share market investors right now.
In 2019 the likes of Intuit, Atlassian, Workday, Shopify and Twilio, among others, have all printed new record highs as market enthusiasm for the enterprise software sector also drags Xero and the likes of WiseTech Global Ltd (ASX: WTC) to new highs.
Xero is due to hand in its fiscal year 2019 results on May 16 and given the stock’s performance investors are expecting more strong global subscriber growth and inroads towards the market’s Holy Grail of profitability.
I like Xero as a business, but as an investor I’d be inclined to wait until May 16 before potentially buying more stock.
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Motley Fool writer Tom Richardson owns shares of Xero and Twilio.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero and WiseTech. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.