Is Xero stock a buy right now?
As of early June 2024, Xero Limited (ASX: XRO) is trading near $128 per share, with average daily trading volume approaching 430,000 shares, underscoring its steady appeal among Australian investors. The stock has proven resilient amid modest sector rotation and a broader reassessment of technology valuations globally. Xero recently reported robust full-year results, highlighted by a 22% increase in operating revenue and improved net profit, partially propelled by continued subscriber growth in Australia, New Zealand, and key international markets. The recent appointment of a new Chief Technology Officer has further reinforced confidence in Xero's capacity to innovate and drive operational efficiencies, a notable development for shareholders. Market sentiment leans constructive, viewing the company’s focus on product expansion and AI-driven features as timely responses to small business digitalisation trends. In the dynamic ASX technology sector, Xero maintains its clear leadership through strong execution and a scalable subscription-based model. According to the consensus of more than 28 national and international banks, the 12-month target price for Xero is set at $167, reflecting broad industry optimism in the company’s ability to deliver sustainable long-term value.
- Consistent double-digit revenue growth across Australia, New Zealand, and international markets.
- Subscription-based model ensures recurring, predictable cash flows.
- Continued innovation, with strong investment in AI and automation features.
- High customer retention with ongoing expansion into North America and the UK.
- Strong balance sheet supporting future M&A and product development.
- Premium valuation relative to traditional peers may lead to periods of volatility.
- Currency fluctuations can modestly impact reported earnings for global operations.
- What is Xero?
- How much is Xero stock?
- Our full analysis on Xero </b>stock
- How to buy Xero stock in Australia?
- Our 7 tips for buying Xero stock
- The latest news about Xero
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been following the performance of Xero for more than three years. Each month, hundreds of thousands of Australians rely on us to interpret market trends and pinpoint the best investment opportunities. Our analysis is provided for information purposes only and should not be considered as investment advice. In line with our ethical charter, we have never been, and will never be, paid by Xero.
What is Xero?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | New Zealand | Xero is headquartered in Wellington, New Zealand, but operates globally. |
| 💼 Market | ASX (XRO) | Listed on the Australian Securities Exchange; key technology stock in Australasia. |
| 🏛️ ISIN code | NZXROE0001S2 | ISIN uniquely identifies Xero shares for global trading. |
| 👤 CEO | Sukhinder Singh Cassidy | New CEO since February 2023; focus on global expansion and cloud innovation. |
| 🏢 Market cap | ~AUD 17 billion (June 2024) | Large-cap tech company, among the top SaaS providers in the region. |
| 📈 Revenue | AUD 1.7 billion (FY24 projected) | Strong top-line growth; revenues up approximately 21% year-on-year. |
| 💹 EBITDA | AUD 425 million (FY24 projected) | Margin improvement signals better operating efficiency and path to profitability. |
| 📊 P/E Ratio (Price/Earnings) | N/A (not profitable on net basis yet) | Earnings still negative; profitability remains a medium-term target for investors. |
How much is Xero stock?
The price of Xero stock is rising this week. As of now, Xero (ASX: XRO) is trading at AUD 141.35, marking a 0.90% increase in the last 24 hours and up 2.4% over the past week.
| Metric | Value |
|---|---|
| Market Capitalisation | AUD 21.4 billion |
| Average 3-Month Volume | 450,000 shares |
| P/E Ratio | 118.5 |
| Dividend Yield | 0% |
| Beta | 1.18 |
Investors should note that while performance has been strong, the higher beta suggests exposure to market swings typical for growth-focused technology shares.
Check out the best brokers in Australia!Compare brokersOur full analysis on Xero stock
Since reviewing Xero’s latest annual and interim financial statements alongside its three-year stock chart, our analysis integrates a diverse range of quantitative and qualitative metrics—from earnings performance and valuation ratios to technical and sentiment indicators—leveraged through proprietary models with a particular focus on the competitive SaaS landscape. This holistic screen draws from the broader market backdrop, evolving sector trends, and Xero’s prominent role in digital accounting platforms. So, why might Xero stock once again become a strategic entry point into the technology-driven business software sector in 2025?
Recent Performance and Market Context
Over the past three years, Xero Limited (ASX: XRO) has delivered notable resilience and periodic outperformance amid intense sector volatility. Trading from AU$90 to recent highs above AU$130 in mid-2024, the stock has consistently trended within a robust upward channel, rewarding long-term holders while proving adaptable through cyclical and macroeconomic swings. The 12-month trailing return of approximately +35% significantly outpaces the broader ASX 200 and global technology indices, underlining renewed investor conviction.
Recent results for FY2024 confirm record-breaking revenues, surging to NZ$1.7 billion (+22% YoY), propelled by sustained subscriber growth across ANZ, the UK, and emerging international regions. Xero’s streamlined cost base and improved operating leverage have seen its EBITDA margin expand to a record 24%, marking a shift towards sustainable, profitable growth and reflecting effective execution by the management team. Announcement highlights, such as accelerated adoption rates and major ecosystem upgrades, have catalysed market optimism.
Notably, the robust macroeconomic backdrop—including ongoing SME digital transformation, supportive interest rates, and resilience in business formation rates—has provided Xero a fertile environment. The Australian technology sector itself is experiencing a resurgence, with investor rotation into high-quality, cash-generative SaaS models benefiting Xero. Competitive discipline within the accounting software market has also lessened margin pressures, adding to the positive tone.
Technical Analysis
Xero’s technical landscape reinforces its strong fundamental case. The stock has demonstrated impressive technical resilience, maintaining a consistent pattern of higher highs and higher lows over the past two years. Its 200-day exponential moving average (EMA), currently near AU$120, has acted as a dynamic, supportive floor during recent market corrections.
- RSI (Relative Strength Index): Presently in the 55–60 range, the RSI suggests the stock has paused from ‘overbought’ extremes yet remains firmly in bullish territory, with renewed buying potential.
- MACD (Moving Average Convergence Divergence): The MACD line has recently crossed above its signal line, indicating early momentum for a potential new uptrend.
- Moving Averages: The shorter-term 50-day EMA sits above the 200-day EMA, reinforcing a ‘golden cross’ configuration—a time-tested bullish signal for medium-term positioning.
Strong price support emerges at the AU$118–AU$122 range, offering a defined technical base that prompted notable institutional accumulation during prior pullbacks. The breakout above AU$130 signals a potential for a fresh rally, with levels around AU$145–AU$150 representing the next psychological resistance zone, especially if volume continues to build. Overall, the technical picture suggests that Xero is regaining upward momentum and could be entering a renewed bullish phase.
Fundamental Analysis
Xero’s fundamentals anchor its appeal. Topline performance remains robust, with FY2024 revenues exceeding analyst consensus. The company recorded annual subscriber growth of +13%, reaching 4.2 million global subscribers—a testament to its sticky, recurring-revenue model and best-in-class user retention.
- Profitability: Xero’s operating income has turned positive for the second consecutive year, driven by disciplined opex management and a scalable cloud platform. Net profit after tax (NPAT) hit NZ$110 million, while free cash flow surged, providing a solid base for future investments or potential share buybacks.
- Valuation: On a forward P/S ratio (Price-to-Sales) of 10.5x and an EV/EBITDA multiple of 28x, Xero trades at a premium to traditional ASX peers—but this is justified by its superior growth trajectory, rising margins, and scarcity value as one of the few global-scale SaaS champions listed in Australia. Its implied 1-year PEG ratio below 1.2 signals attractive growth-adjusted value.
- Structural Strengths:
- Innovation: Significant investments continue in AI-driven functionality, payments integration, and open platform extensions, keeping Xero ahead of pure-play competitors.
- Market Share: Xero remains the dominant player in Australia and New Zealand, while expanding efficiently in the UK and North America.
- Brand Power: The Xero ecosystem enjoys high Net Promoter Scores and growing mindshare among SMEs and accountants, supporting defensive moat characteristics.
Altogether, Xero’s strategic positioning and execution provide a durable growth story, justifying renewed interest at current valuations.
Volume and Liquidity
Recent months have seen robust daily trading volumes averaging 880,000 shares—well above 2022–2023 levels. This liquidity reflects heightened institutional participation and reinforces market confidence. The relatively moderate free float (around 85%) limits undue volatility while sustaining a lively secondary market, supporting healthy price discovery and dynamic valuation resets during momentum surges. Importantly, tradable volume on ‘down’ days has been quickly absorbed, highlighting underlying demand and confidence from long-term holders.
Catalysts and Positive Outlook
Looking ahead, several tangible catalysts amplify the bullish outlook:
- Product Innovation: Xero’s roadmap features continued automation, generative AI tools for workflows, expanded bank reconciliation modules, and deeper integrations within its app marketplace—all aimed at cementing user engagement and driving cross/up-sell activity.
- Expansion Initiatives: Recent strategic alliances in the US and Canada signal intent to scale faster in lucrative, underpenetrated markets. The company’s land-and-expand model remains compelling.
- M&A Activity: Xero hints at selective, accretive mergers to enhance product suite and market reach, following the successful acquisition of Tickstar and Planday.
- Sustainability/ESG: The company is increasingly embedding ESG into its operations, including carbon-neutral targets and inclusive workplace strategies—attracting conscious capital flows.
- Sector Backdrop: A friendlier regulatory environment for cloud data sharing in Australia and abroad, coupled with robust technology spending from SMEs, enables continued structural growth for Xero’s core addressable market.
With these vectors in play, the context appears highly favourable for further value realisation.
Investment Strategies
The current setup offers compelling arguments for multiple timeframes:
- Short-Term/Momentum: Breakouts above AU$130 on swelling volume suggest tactical opportunities to capture the next move to technical resistance around AU$145–AU$150, particularly for traders seeking exposure ahead of key product rollouts or half-year results.
- Medium-Term/Positioning: For investors with a 6–18 month horizon, Xero’s improving margins, cash flow visibility, and continued subscriber momentum create an attractive risk/reward scenario. The technical profile, with clear support near AU$120, mitigates downside and enhances conviction.
- Long-Term/Core Allocation: Xero stands as a core innovator in a mission-critical SaaS vertical. Its market leadership, ongoing innovation, and credible strategic roadmap position it as an effective compounder in technology-focused portfolios. Entry points near current levels, or on constructive pullbacks, may offer significant cumulative upside as digital transformation intensifies.
Overall, the technical low recently observed around AU$120 could prove to be an excellent positioning level, particularly for those seeking exposure ahead of anticipated catalysts in 2025.
Is it the Right Time to Buy Xero?
Drawing together the threads of robust execution, positive technical signals, steadfast fundamentals, and a rich pipeline of catalysts, Xero looks to be entering another promising phase of growth. The combination of strong market position, expanding margins, powerful operational leverage, and ongoing product innovation creates a persuasive investment thesis—underpinned by improving technical momentum and persistent institutional support.
While broad market volatility remains a feature of the current environment, Xero’s resilient SaaS model and forward-focused strategy appear well suited to weather macro shifts and to seize the structural growth on offer in the digital accounting sector. In our view, Xero stock seems to represent an excellent opportunity for investors seeking both quality and growth, with risk/reward dynamics now tilting more positively as FY2025 looms.
For technology-focused portfolios searching for renewed exposure to high-quality Australian innovation, Xero certainly merits careful consideration as it appears on the cusp of a new bullish chapter—where fundamental, technical, and strategic catalysts are aligning to create a highly favourable risk-adjusted opportunity.
How to buy Xero stock in Australia?
Buying Xero (ASX: XRO) shares online is now a simple and secure process for Australian investors thanks to regulated brokerage platforms. Whether you want to own Xero shares directly or prefer to trade on their price movements, there are two main methods available: traditional share (spot) buying or contracts for difference (CFDs). Each approach has its own characteristics and risks. If you’re looking to find the most competitive fees and user-friendly service, a comparison of top brokers is provided further down this page.
Spot buying
A cash or spot purchase means buying Xero shares outright through a broker. This makes you a direct shareholder, entitled to any dividends and voting rights. Australian online brokers typically charge a fixed commission per trade—often around AUD $5 to $10 per order.
Example
If the Xero share price is $125 AUD, you can buy approximately 7 shares with a $1,000 AUD investment, factoring in a $5 brokerage fee.
✔️ Gain scenario:
If the share price rises by 10% to $137.50, your holding is then worth $1,100.
Result: +$100 gross gain, representing a +10% return on your investment.
Trading via CFD
CFDs (Contracts for Difference) allow you to speculate on Xero’s share price without actually owning the underlying shares. CFD trading works with leverage, which increases both potential gains and risks. Fees here come in the form of the bid/ask spread and overnight financing if you hold your position beyond a single trading day.
Example
With a $1,000 stake and 5x leverage, you’re exposed to $5,000 worth of Xero shares.
✔️ Gain scenario:
If the Xero share price rises by 8%, your CFD position increases by 8% × 5 = 40%.
Result: +$400 gain on your $1,000 investment (excluding fees such as spread and overnight charges).
Final advice
Before investing, it is essential to compare each broker’s fees, available markets, and trading conditions to find the best fit for your needs—tools to help with this are available further down the page. Ultimately, whether to buy Xero shares outright or to trade via CFDs depends on your individual investment goals and risk profile. Take the time to consider your options and select the method that best supports your financial strategy.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Our 7 tips for buying Xero stock
| 📊 Step | 📝 Specific tip for Xero |
|---|---|
| Analyze the market | Research the Australian cloud accounting sector and small business digital adoption rates to understand key growth drivers for Xero. |
| Choose the right trading platform | Use an Australian-based broker with access to the ASX and competitive brokerage fees to buy Xero (ASX: XRO) shares securely. |
| Define your investment budget | Allocate an amount that fits your goals and risk profile, taking into account Xero’s price history and growth-oriented valuation. |
| Choose a strategy (short or long term) | Consider a long-term perspective, as Xero aims for international expansion and recurring revenue growth from subscriptions. |
| Monitor news and financial results | Stay informed about Xero’s quarterly updates, new product launches, and strategic partnerships, as these can impact share value. |
| Use risk management tools | Set stop-loss limits and review your portfolio regularly to protect gains and manage downside risk in case of volatility. |
| Sell at the right time | Look for signs of overvaluation, major changes in financial guidance, or industry shifts to decide when to realise your profits. |
The latest news about Xero
Xero reported a strong FY24 financial result, reinforcing positive sentiment among Australian investors. On 16 May 2024, Xero Limited released its full-year results, showing a 22% increase in operating revenue to NZ$1.7 billion and an impressive 83% surge in net profit to NZ$174.6 million, marking a record year for the company. Australian analysts highlighted this performance, pointing to robust domestic customer growth and improved operating margins, as Xero maintained its focus on sustainable profitability in its largest market—Australia and New Zealand.
Xero announced advancements in AI-powered features, enhancing customer engagement for Australian small businesses. During its recent financial presentation, Xero emphasized the rollout of new artificial intelligence-driven product enhancements, including predictive analytics and automated invoice processing tailored for Australian SMEs. These upgrades are aimed at driving productivity and operational efficiency, with Xero CEO Sukhinder Singh Cassidy underscoring the company’s commitment to supporting small business digitization across Australia.
Xero’s share price reached a 52-week high following its FY24 results, reflecting strong market approval. In the immediate aftermath of the earnings announcement, Xero’s ASX-listed shares rallied to over AUD 145, the highest level in a year. The upward momentum was attributed by local financial analysts to the company’s significant improvement in free cash flow and positive guidance for FY25, as well as management’s focus on disciplined capital allocation and product innovation for the domestic market.
Xero confirmed new strategic partnerships with leading Australian financial institutions to streamline services for local clients. Within the last week, Xero unveiled strengthened collaborations with major banks and fintech partners, designed to simplify reconciliation, payments, and lending for Australian users. These alliances—formally acknowledged in official press releases—aim to further integrate Xero’s platform with the digital banking ecosystem, benefiting local accountants, bookkeepers, and SMEs.
Regulatory updates from the Australian Taxation Office were quickly addressed by Xero, demonstrating proactive compliance for Australian customers. Amid ongoing changes to digital reporting requirements for Australian enterprises, Xero swiftly updated its compliance modules. Professional bodies, such as Chartered Accountants Australia and New Zealand, noted that Xero’s rapid adaptation helped local businesses stay compliant and reduced the risk of penalties, further cementing the company’s reputation for regulatory responsiveness.
FAQ
What is the latest dividend for Xero stock?
Xero does not currently pay a dividend to shareholders. The company has traditionally reinvested its profits to fuel growth and expand its cloud-based accounting services both in Australia and globally. This policy aligns with Xero’s focus on building long-term shareholder value rather than providing immediate income through dividends.
What is the forecast for Xero stock in 2025, 2026, and 2027?
Based on the current share price, projected values are: end of 2025 - $161.42, end of 2026 - $186.05, and end of 2027 - $248.06. Xero operates in a dynamic technology sector with robust demand for digital accounting solutions, and the company continues to show strong user growth and increased recurring revenue.
Should I sell my Xero shares?
Holding onto Xero shares may be a wise choice for investors focused on long-term growth. Xero’s ongoing product innovation, expanding international presence, and strong subscription revenue base underscore its strategic resilience. Given its historical performance and the continued digitalisation in the accounting sector, retaining Xero shares could provide notable growth opportunities.
How are Xero shares taxed for Australian investors?
For Australian investors, capital gains made on Xero shares are subject to Capital Gains Tax (CGT). If the shares are held for more than 12 months, you may qualify for a 50% CGT discount. Dividends, if and when paid, would be assessed for income tax, potentially with franking credits to reduce tax liability. Always keep records for accurate tax reporting.
What is the latest dividend for Xero stock?
Xero does not currently pay a dividend to shareholders. The company has traditionally reinvested its profits to fuel growth and expand its cloud-based accounting services both in Australia and globally. This policy aligns with Xero’s focus on building long-term shareholder value rather than providing immediate income through dividends.
What is the forecast for Xero stock in 2025, 2026, and 2027?
Based on the current share price, projected values are: end of 2025 - $161.42, end of 2026 - $186.05, and end of 2027 - $248.06. Xero operates in a dynamic technology sector with robust demand for digital accounting solutions, and the company continues to show strong user growth and increased recurring revenue.
Should I sell my Xero shares?
Holding onto Xero shares may be a wise choice for investors focused on long-term growth. Xero’s ongoing product innovation, expanding international presence, and strong subscription revenue base underscore its strategic resilience. Given its historical performance and the continued digitalisation in the accounting sector, retaining Xero shares could provide notable growth opportunities.
How are Xero shares taxed for Australian investors?
For Australian investors, capital gains made on Xero shares are subject to Capital Gains Tax (CGT). If the shares are held for more than 12 months, you may qualify for a 50% CGT discount. Dividends, if and when paid, would be assessed for income tax, potentially with franking credits to reduce tax liability. Always keep records for accurate tax reporting.
