Why is the Xero share price slipping 6% today?

It’s a painful day for the cloud accounting giant.

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Key points

  • After a few days of positivity, the Xero share price is back in the red
  • There was a sizeable fall in US tech shares overnight
  • Xero shares have dropped almost 50% since the beginning of 2022

The Xero Limited (ASX: XRO) share price is down almost 6% today with the cloud accounting provider losing some of the gains it’s made over the last week.

At the time of writing, Xero shares were fetching $77.81 apiece, a 5.76% drop on yesterday’s close.

Overnight, there was pain in the US tech sector. That’s why the Betashares Nasdaq 100 ETF (ASX: NDQ) price is currently down by around 3%. Also last night, the Microsoft (NASDAQ: MSFT) share price dropped around 3% while Apple Inc (NASDAQ: AAPL) also dropped by around 3%.

There has been much volatility on share markets this year amid concerns about inflation and interest rates.

The Xero share price and other ASX tech shares are often influenced on a day-to-day basis by what happens in the US share market.

Wider ASX share market fall

It’s not just Xero that is down. There are plenty of other shares that are in the red. The S&P/ASX 200 Index (ASX: XJO) is currently down 1.37%.

Blue chip shares Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are also down around 1% at the time of writing.

However, there are many others that are down much further. For example, the Carsales.com Ltd (ASX: CAR) share price is down 12% while Block Inc (ASX: SQ2) is down 6.77%.

Xero share price snapshot

Since the beginning of the 2022 calendar year, the Xero share price is down 44%.

The company has a current market capitalisation of around $11.7 billion.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BETANASDAQ ETF UNITS, Block, Inc., Microsoft, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS, Block, Inc., and Xero. The Motley Fool Australia has recommended Apple and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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