17/09/2024 09:21

Xero Ltd (XRO) $144.40

XRO continues to trade around its two-year high, and while it would be easy to grab our profits (~40%) and move on to fresh pastures, we see no reason as the business successfully pushes price hikes onto its growing number of customers. MM uses XRO, along with another 4.16m subscribers across 180 countries,  and once it's all setup, it's hard work to move elsewhere, which equates to a sticky revenue stream

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01/08/2024 09:37

Xero Ltd (XRO) v NEXTDC (NXT)

We started reducing our exposure to XRO in mid-July on valuation grounds, and we are again considering going one step further and switching to fellow tech name NXT. So far in 2024, both stocks have rallied +23%, but we now see more upside from the data centre developer as opposed to the digital accountancy business, with the recent 27% correction in the highly correlated AI giant Nvidia affording us a better entry into NXT, i.e. AI requires huge amounts of energy and storage which NXT delivers with its data centres

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12/07/2024 09:28

Active Growth Portfolio – Amendments

We are making two changes to the growth portfolio today

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12/07/2024 09:01

Xero Ltd (XRO) $141.50

We like the online accounting business XRO, which has resided in our Growth Portfolio since mid-2020, but high-valuation stocks do come in and out of fashion, leading to significant ups and downs in their respective share prices.

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04/07/2024 09:16

Xero Ltd (XRO) $135.87

It’s been a volatile journey post-COVID for XRO as high-value stocks go in and out of favour, although the cloud-based accounting firm continues to deliver operationally. MM has held XRO for around four years, making us especially aware of how the stock can move on sector sentiment, often more than underlying company performance.

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27/06/2024 10:03

Xero Ltd (XRO) $134.42

In May, XRO posted a solid FY24 result, as they balance the challenges of growth and increasing earnings. They had previously flagged their focus on achieving what’s called the Rule of 40, which says the sum of annual revenue growth and the free cash flow margin should be above 40, and at this recent result they achieved it. Software-as-a-service business often use this as a guiding principle to get the balance right, and XRO is now hitting the mark.

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05/06/2024 16:41

Xero (XRO) $125.93

XRO -4.45%: the accounting software company struggled today after issuing a new convertible note for a 7-year term. The deal raises $US925m, though the bulk of it will be used to close out the $US700m worth of convertible notes due next year. The new offer carries a 1.65% interest rate, an increase from the zero-coupon deal that is being replaced, while the notes have an initial conversion price of $US109.65, or ~$A165.

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23/05/2024 16:23

Xero (XRO) $134.84

XRO +8.74%: full-year results for the NZ-based accounting software company were out this morning with the share price seeing its best day in 12 months on the back of the strong numbers. Revenue was in line, climbing 22% in constant currency terms to $1.7b thanks to subscriber growth of 11% and Average Revenue Per User (ARPU) up 14%.

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12/04/2024 09:07

Xero Ltd (XRO) $121.80

MM remains a big fan of this online cloud-based accounting software company XRO, but after more than doubling from its 2022 low, we are closer to trimming than adding to our 5% position. However, this is a quality company, and we have no plans to sell into weakness; in line with our ”three steps forward, two back” outlook, we may trim into strength, but we are likely to be fussy.

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14/03/2024 08:47

Xero Ltd (XRO) $138.01

XRO rallied another +1.8% yesterday, posting fresh 2-year highs in the process and extending its 2024 advance to more than 20%. MM is a big fan of online cloud-based accounting software company XRO, as we’ve outlined through 2024, particularly after its recent strategy day. However, the stock has rallied over 40% from its late 2023 low, and we are contemplating trimming our 5% holding ahead of its May FY result.

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