Why did xro asx fall 16% today?

A global software sell-off hit ASX tech stocks after analysts highlighted risks from Anthropic Claude AI to SaaS pricing and margins. Investors rotated into resources while cutting high-multiple names. The move looked thematic rather than company-specific news. It reflects a quick reset in growth and profitability expectations across Australian software.

Is the Xero share price now cheap after the selloff?

Xero trades on about 65x trailing earnings and roughly 8x sales, with an estimated 5% free cash flow yield. Those are not bargain multiples, but the stock has de-rated about 47% over 12 months. Whether it is attractive depends on your view of growth, margin durability, and AI execution.

What should investors watch next for xro asx?

Key catalysts include the 14 May 2026 results, subscriber adds, ARPU, and margin guidance. We also watch updates on AI-assisted features inside the platform and any commentary on customer retention. Sector sentiment around ASX tech stocks and further news on Claude AI capabilities will also influence the share price.

How could Anthropic Claude AI impact Xero?

Claude AI could enable cheaper AI-native tools that pressure SaaS pricing, or it could be integrated to improve productivity, support, and product velocity. The net effect depends on execution speed, customer adoption, and pricing strategy. If Xero delivers useful AI workflows quickly, the impact can be neutral to positive over time.

Global Market Insights

XRO.AX Stock Today, February 05: AI Shock Triggers 16% Selloff

ByDanny Kontos February 4, 2026February 4, 2026

The xro asx slumped about 16% today as investors rotated out of ASX tech stocks on fresh AI competition fears. The Xero share price slide followed analyst chatter that Anthropic Claude AI could pressure SaaS pricing and margins. We explain what drove the move, what it means for XRO.AX, and how to think about valuation and trading levels from here. We also outline key catalysts to watch into the next earnings update for Australian investors.