Xero Stock to Watch After A$550 Million Buyback, Melio Margin Concerns
Xero Limited shares slipped 2.0% to A$78.07 on Monday ahead of Tuesday’s ASX session. The accounting-software maker’s stock tracked between A$78.04 and A$82.16, staying above its 52-week low but still well under last year’s peak. Investors are sizing up Xero’s planned A$550 million share buyback against softer profit and slimmer margins as its U.S. push continues. Xero XRO.AX pulled back after Friday’s jump, when the shares surged 8.67% to close at A$80.07, putting the stock near the top of the S&P/ASX 200. The swings have traders weighing if a U.S. expansion and payments bet can counter Xero’s short-term drag from absorbing Melio.