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Why is the Xero share price leaping higher today?

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It’s been a pretty happy day for the S&P/ASX 200 Index (ASX: XJO) so far this Thursday, although not as happy as this morning.

At the time of writing, the ASX 200 is up by 0.37% at just over 6,530 points after the index rose as high as 6,550 points earlier today.

But it’s an even happier day for the Xero Limited (ASX: XRO) share price. Xero shares have enjoyed a healthy 2.59% bump so far today to $76.94 a share as it currently stands.

This latest lift continues a trend we have been seeing for most of the week. Since Xero hit a new 52-week low of $72.53 a share last Friday, the company has risen by more than 5%.

Saying that, Xero is still down significantly over a longer time frame. The online accounting software provider’s shares have lost around 13% over the past month (even after the recent gains). It also remains down by a painful 47% over 2022 thus far.

But enough dwelling on that. So why is the Xero share price continuing to lift today?

Well, it’s not entirely clear. There hasn’t been any news or developments out of the company itself. However, it is worth noting that Xero is not the only ASX 200 tech share currently enjoying some market-beating gains. We also see similar moves in the Block Inc (ASX: SQ2), WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU) share prices. Block shares are leading the pack, gaining 4.44% so far today.

So it’s possible Xero shares are just getting caught up in this updraft lifting most ASX tech shares today.

There is another development worth discussing, though. As we covered earlier today, rumours are flying around that Australia and New Zealand Banking Group Ltd (ASX: ANZ) is looking to acquire Xero rival MYOB. MYOB is a fellow accounting software provider used by more than a million small businesses in Australia.

MYOB was once an ASX-listed share in its own right. However, it was bought by private equity firm KKR for $2.9 billion in 2019.

So if ANZ does indeed buy MYOB, it could have implications for Xero in the Australian and New Zealand markets. But this is just a rumour at this stage. And it’s unclear whether this is impacting the Xero share price today.

Whatever the reason for the Xero share price’s strong performance today, no doubt it will come as more relief for shareholders.

At the current Xero share price, this ASX 200 tech share has a market capitalisation of $11.46 billion.

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