Why Xero (XRO) shares crashed today
XRO -7.11%: The online accounting business held their AGM today and the commentary has prompted a decent sell-off in the shares. They said year-to-date UK subscriber growth was weaker than expected with net subscriber additions subdued amid a “less than buoyant macro environment”. While there was not a lot of detail provided, that part of the world is clearly still struggling as we highlighted in our Morning Note today and it’s a disappointment for Xero to see continued UK weakness, given this market is important for them (accounts for nearly 30% of revenue). We trimmed our position in XRO recently nearer ~$100 and we’ll be interested again if it falls back into new lows.
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