The Xero Limited (ASX: XRO) share price is storming ahead today.
Xero shares are up 7% and are currently trading at $69.48. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 2.63% today.
Let's take a look at what could be impacting the Xero share price.
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Tech shares rally
Xero is not the only ASX tech share having a top day today. Appen Ltd (ASX: APX) shares are up 4%, while the Megaport Ltd (ASX: MP1) share price is soaring nearly 10%.
ASX tech shares including Xero are following in the footsteps of US counterparts. The NASDAQ-100 Index (NASDAQ: NDX) added $700 billion in value overnight amid US inflation dropping, Bloomberg reported.
The tech-heavy Nasdaq-100 Index soared 7.49% overnight.
Meanwhile, Goldman Sachs has retained a buy rating on the Xero share price with a price target of $115. This implies an upside of nearly 66% based on the share price at the time of writing. Goldman is optimistic about the company's revenue outlook, especially the average revenue per user (ARPU). Analysts said:
This momentum is continuing, with exit ARPUs in both ANZ & International well above blended ARPU during the half (despite. c.NZ$10mn of Xerocon revenues).
This suggests a strong revenue trajectory into 2H23, aided by further price rises (NA in Nov, Partner in Mar) ongoing transaction growth, partly offset by spot FX.
Today's positive day for Xero follows the share price sliding 11% yesterday on the back of financial results and the CEO's departure. Xero's EBITDA lifted 11% to NZ$108.6 million, however, this was below consensus estimates, my Foolish colleague James reported.
Xero share price snapshot
The Xero share price has fallen nearly 50% in the past year and 51% in the year to date.
For perspective, the ASX 200 has shed 7% in the past year.
Xero has a market capitalisation of more than $10.4 billion based on the current share price.
