The Xero Limited (ASX: XRO) share price is taking a beating today.
In early afternoon trade shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider are down 2.2% to $73.13 per share.
That's a big improvement from this morning though, when the Xero stock was down 4.9%.
So what's going on with the ASX tech share?
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What are ASX 200 investors considering on Tuesday?
To be fair, it's not just the Xero share price that's deep in the red today.
Logistics software provider WiseTech Global Ltd (ASX: WTC), as one example, is down 1% at this same time.
While the ASX 200 is down 0.1%, the information and technology sector is trailing the market, as witnessed by the 1.1% decline in the S&P/ASX 200 Information Technology Index (ASX: XIJ).
With no price-sensitive news hitting the markets, the Xero share price and the wider IT sector look to be under pressure following steep overnight losses on the Nasdaq Composite (NASDAQ: .IXIC).
With investors again fretting about the next tightening move from the US Federal Reserve, the tech-heavy index plunged 1.9% by the closing bell.
Is the Xero share price a buy now?
Xero stock is down a painful 50% in 2022 as the company got slammed by fast-rising interest rates.
But at $73.07 per share, does Xero represent a buying opportunity?
According to Goldman Sachs, the answer is yes.
Across its range of IT services, Xero currently has 3.3 million global subscribers.
But labelling Xero shares as a "compelling global growth story", Goldman points out the company has a total addressable market of some 45 million subscribers.
Goldman has a buy rating on the company with a target of $115.00 for the Xero share price. While that's well below the $146.22 per share Xero was trading for back on 4 January, it represents a 57% increase from the current price.
