Why the Xero (ASX:XRO) share price charged higher in April

The Xero Limited (ASX: XRO) share price surged 11.9% higher in April. Here’s why the Aussie technology share was on the move last month.

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The Xero Limited (ASX: XRO) share price was on fire once again in April. Shares in the Aussie accounting software group jumped 11.9% higher to close out the month at $141.56 per share. 

That means Xero now boasts a market capitalisation of nearly $21 billion and is 10.4% shy of its 52-week high. Here’s why the Aussie technology share was on the charge last month.

Why the Xero share price charged higher in April

The only major update from the group came on 1 April. Xero announced the completion of its Planday and Tickstar acquisitions to the market. Planday is a UK-based workforce management platform operating in Europe and the UK while Tickstar is a technology-based e-invoicing network business.

Other than completing the takeovers, which had already been announced, there wasn’t much news from the Xero team in April. However, the Xero share price still managed to charge higher throughout the month.

It certainly helped that the S&P/ASX 200 Index (ASX: XJO) also had a good month. Investors were buoyed by solid economic data throughout April with the benchmark Aussie index gaining 3.5% for the month.

Momentum plays its role in investing, especially with Aussie shares on the charge right now. Strong gains across other technology shares like Afterpay Ltd (ASX: APT) also helped the broader WAAAX group of shares, of which Xero is a part, push higher.

A positive broker note from Goldman Sachs, which retained its ‘Buy’ recommendation on the stock at a revised $153.00 per share valuation, also helped buoy the Xero share price in April. Goldman viewed the Planday and Tickstar acquisitions positively for Xero’s growth.

Foolish takeaway

The Xero share price had another solid month in April. The completion of the group’s two acquisitions was well-received by the market and helped propel the company’s market valuation to nearly $21 billion by the end of the month.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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