"XERO FPO NZ (ASX: XRO)
Xero is a New Zealand-based cloud accounting software provider, snapping up market share in New Zealand, Australia, the US and the UK. Although it is not yet profitable it is investing heavily in marketing and development and is showing all the signs of becoming a much larger corporation in the coming years.
Xero’s shares have been hit hard over the last few days however, largely in response to its full-year earnings results. The company said that its net loss had almost doubled compared to the previous year, which has spooked some investors. Perhaps some investors are even considering switching their money over to MYOB Limited (ASX: MYO), one of Xero’s rivals, when it floats its shares next week.
Although Xero’s shares are not cheap per se, they are trading at a reasonable price considering the company’s potential growth prospects. Right now, the stock is trading at $19.02, which compares to its all-time high of nearly $43 recorded just over 12 months ago."
