Xero fell 4.5 percent to a 13-month low of NZD $16.96. The stock has declined some 63 percent from its March

Suze Metherell for Yahoo Finance New Zealand writes: Xero, the cloud-based accounting software firm, fell 4.5 percent to a 13-month low of $16.96. The stock has declined some 63 percent from its March peak of $45.99 in part due to a global selloff as investors questioned high valuations relative to earnings of tech companies. The Wellington-based company wants a million customers, and is targeting growth in the US market where so far it has some 22,000 of its total 371,000 customers from.

"The stock is weak, but we are in a market where hope doesn't have a high multiple placed on it," Goodson said. "To get to the multiple where Xero was formerly trading you need several million plus customers in the US, and to date that is a concept rather than a reality."