SYDNEY, Jan 25, 2026, 17:07 AEDT — Market closed
- Xero bounced back on Friday, closing up 3.5% at A$101.22, recovering from a new 52-week low hit just the day before
- After the Australia Day holiday, the ASX kicks off trading again on Tuesday, ahead of key inflation figures and a Fed decision expected midweek
- Investors are focused on rates and risk appetite as they weigh high-growth software stocks
Xero Ltd shares ended Friday up 3.54% at A$101.22, recovering some losses after hitting a 52-week low of A$97.19 on Thursday, according to Investing.com data. 1
The bounce counts more given the next session kicks off a holiday-shortened week in Australian markets. Rate-sensitive tech stocks have been jittery after each macro update. The ASX will be closed Monday for Australia Day and won’t reopen until Tuesday, giving investors a shorter window to adjust positions. 2
Two key risk events hit Wednesday: Australia’s December-quarter CPI at 11:30 a.m. AEDT and the U.S. Federal Reserve’s January policy decision. Both have the power to move bond yields sharply, which often ripples through to long-duration growth stocks like Xero. 3
Xero’s shares have been volatile in January. The stock dropped 5.15% on Jan. 21 and fell further the following day, only to recover by the close on Friday, according to the Investing.com pricing table. 1
No new earnings reports have come out recently, leaving traders to focus on the stock’s sharp drop from its 52-week peak of A$196.52 and watch for buying interest around key levels like A$100. 1
Xero quietly rolled out new AI-driven analytics features worldwide, according to a Jan. 15 media release. The update leverages its Syft acquisition and aims to offer “enterprise-grade” tools tailored for small businesses. 4
“Powerful analytics embedded in Xero puts small businesses on equal footing with larger enterprises,” Chief Product and Technology Officer Diya Jolly said in a release. 4
Xero offers accounting software aimed at small businesses and accountants, going head-to-head with Intuit’s QuickBooks in the US and firms like Sage in the UK. Meanwhile, local competitors and specialized tools continue to keep pricing competitive across most markets. 4
The ongoing debate centers on valuation versus execution. Investors want to see if new features can boost retention and revenue per customer quickly enough to warrant a premium multiple, even as rate forecasts evolve. 4
The risk is clear: if inflation jumps higher or the Fed turns more aggressive than anticipated, yields could spike, hitting high-growth software stocks hard once more. Trouble integrating recent product launches or hints of slowing customer growth would quickly weigh on sentiment. 5
Xero’s next key date is its FY26 full-year results, set for May 14, per an ASX filing. 6
