The Xero Limited (ASX: XRO) share price rocketed 4.4% higher in yesterday's trade to lead the S&P/ASX 200 Index (ASX: XJO) winners list.
Why did the Xero share price surge?
There were no new announcements from the Aussie software company but that didn't stop heavy buying by investors.
The latest surge comes amid a broader sell-off in technology shares, particularly in the US-based Nasdaq.
It's been a tough few weeks for tech investors who have seen the likes of Xero and Afterpay Ltd (ASX: APT) track US tech stocks lower.
But it seems like the Xero share price has met some support in the market and bounced back strongly.
Will the ASX tech share again rocket past $100 per share?
I think the Xero share price could be on the move again in this morning's trade. US tech stocks performed strongly overnight and the ASX 200 looks set to rise.
That's good news for investors but I think the medium-term outlook also has a lot to like.
Xero has continued to acquire and retain customers despite the coronavirus pandemic. The company has a clear, steady expansion plan with a mix of organic and inorganic (i.e. from acquisitions) growth.
That could see the company take big strides towards achieving the growth that is promised by its current 4,417 price-to-earnings (P/E) ratio.
If the company can continue to grow while keeping customer churn numbers low, I think the Xero share price is a good chance to hit $100 per share again in 2020.
Foolish takeaway
ASX tech shares have been under pressure in recent weeks but we could be seeing a turning point.
The Xero share price doesn't look cheap by any means but it could still be a good buy for growth. As of Tuesday's close, the company's shares are still well below their all-time high of $103.48 per share reached earlier this month.
I think the Aussie tech share is worth watching in early trade as the market looks set to rebound.
