Moreover, in the New Zealand market, Xero already counts over 26% of all small businesses as customers. Is it time to buy Xero shares? Xero has an innovative accounting product which has proven its ability to attract and retain customers in its home country. Although it has not yet posted a profit, it has a strong balance sheet and its bottom line will likely benefit dramatically from ongoing network effects, as the marginal cost per additional customer falls. In my opinion, at today's prices, Xero is a worthy higher-risk investment for your share portfolio.