Xero shares ride wild as prices soar and slump
This morning Xero the Wellington based firm opened at $37.30 but experienced a stiff fall when trading slid down to $36.70 just before 3pm, more than 11 per cent below the all-time-high of $41.50 they hit earlier. A come back at $37 was experienced later in the day
Within few hours Xero's market capitalisation has risen and then fallen by nearly $600 million which greatly highlights the volatility of the stock.
Xero boss Rod Drury says his company would be glad to stay "below the radar for a while" but its rising share prices is driving sales of its online accounting products.
Listed as New Zealand's second-biggest firm by value, Xero, is quickly gaining ground as one of New Zealand's most valuable listed company.
Speaking from San Francisco, he said many investors in the United States thought Xero could be "like the Facebook for the small business cloud".
Drury told Radio New Zealand's Morning Report programme that he hopes the market is not expecting the seven-year-old company to post a profit any time soon.
Xero provides a very good product which has successfully put things like payroll, invoicing, expense claims, management reporting and accounting feeds into the accounting package.
The questions now are whether Xero can succeed in the United States and can be quick enough to keep the shareholders happy.
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