The Xero Limited (ASX: XRO) share price is tumbling by more than 7% on Friday.
At the time of writing, the Xero share price is $88.41, 7.13% lower than its previous close.
However, at its lowest point of the day so far the business and accounting software-as-a-service (SaaS) provider’s stock was trading at $87.89 – representing a 7.67% drop and a new 52-week low.
For comparison, the ASX 200 is currently down 2.52%.
Let’s take a closer look at what could be weighing on the SaaS provider’s stock today.
Xero share price sinks
The Xero share price is suffering on Friday after the Nasdaq Composite (NASDAQ: .IXIC) plunged 4.9% overnight.
The tech-heavy index was weighed down by some of its biggest names, with the NASDAQ-100 (NASDAQ: NDX) recording a 5% tumble.
That’s likely dragging on the S&P/ASX 200 Information Technology Index (ASX: XIJ). It has dumped a whopping 4.07% at the time of writing.
That makes it the worst-performing ASX 200 sector on Friday. Though, it’s worth noting that none of the ASX 200’s 11 sectors are trading in the green right now.
However, Xero’s stock isn’t the tech sector’s biggest weight today. That unfortunate crown is worn by Life360 Inc (ASX: 360) – its share price is exhibiting a 9.3% fall.
Looking to the broader ASX technology sector, the S&P/ASX All Technology Index (ASX: XTX) has dipped 4.15%. That leaves it almost 29% lower than it was at the start of 2022.
Though, that’s outperforming the Xero share price. The SaaS provider’s stock has fallen 39% year to date.