Why did the Xero share price just rebound 6%?

Xero shares have recovered from a 52-week low and are now in the green.

| More on:
A man leaps from a stack of gold coins to the next, each one higher than the last.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Xero share price is reversing declines after hitting a 52-week low
  • Several ASX tech shares are seeing investors come back
  • One market expert recently suggested the declines would stop after a heavy, one-day fall

The Xero Limited (ASX: XRO) share price has rebounded 6% from a 52-week low that it experienced earlier today.

In morning trade, Xero shares dropped below $82. At the time of writing, Xero shares are up around 3% for the day at $86.93.

However, the ASX tech share has suffered from such heavy selling this year that it’s still down 14% over the past month and around 40% since the beginning of the 2022 calendar year.

Other ASX growth shares are also experiencing rebounds today. The Altium Limited (ASX: ALU) share price, which was earlier sinking by 5%, is now only down by less than 1% at $29.78, while the WiseTech Global Ltd (ASX: WTC) share price has recovered from an early fall of 7% and is now up 2.75% at $40.41.

Additionally, the S&P/ASX 200 Information Technology Index (ASX: XIJ), down by around 5% at one stage, is now in the red by just 1%.

What’s happening to the Xero share price?

There has been plenty of market attention on rampant inflation and how central banks will need to increase interest rates to combat this.

Interestingly, last night the NASDAQ-100 (NASDAQ: NDX) fell by 4%.

It was earlier this week that Dennis Gartman, the chair of the University of Akron Endowment, told Bloomberg Radio that the share market would be in a bear market until there was a one-day “violent, downward movement” which signals that prices had reached a bottom.

Mr Gartman said:

We’ll have one day when we’ll be down 5% or 6% and that’ll be the final selling pressure. That’ll end the bear market.

Time will tell whether the tech sector has just witnessed the bottom, or whether there is more volatility to come.

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Technology Shares

Here’s why the Electro Optic Systems share price collapsed 26% today

The defence contractor's shares did not win the battle today.

Read more »

A man yells as his virtual reality headset and earphones tumble to the floor.
Technology Shares

Here’s why ASX 200 tech shares are taking a beating on Wednesday

Global share markets are forecast to remain volatile until inflation is brought under control.

Read more »

A man yells as his virtual reality headset and earphones tumble to the floor.
Technology Shares

Why is the Altium share price down 5% today?

Altium shares are erasing most of their gains achieved this week.

Read more »

Technology Shares

Megaport share price slumps 5% despite takeover speculation

A takeover could be in the works with Megaport. So, why are shares down?

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Technology Shares

Why is the Weebit Nano share price charging 5% higher today?

Weebit Nano is progressing the development of its ReRAM technology.

Read more »

Two people work with a digital map of the world, planning their logistics on a global scale.
Technology Shares

Own Nearmap shares? Here’s how much cash the company has up its sleeves

This ASX tech share boasts a "very strong balance sheet".

Read more »

two women stand at a computer smiling in a large factory with high shelves piled with goods, as though working in logistics.
Technology Shares

Behind the ASX share: What makes WiseTech tick?

Here's a breakdown of the $12 billion tech company's business.

Read more »

Tabcorp share price merger Poker chips on a laptop keyboard to symbolise gambling on ASX shares
Technology Shares

Tyro share price sinks 20% to new record low, what’s going on?

Tyro has lost its CEO to Star...

Read more »