The WiseTech Global Ltd share price just lost 6% as ASX tech shares retreat

Other heavy fallers today include Altium Limited (ASX: ALU) and Nextdc Ltd (ASX:NXT).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Australian technology shares fell across the board today after sharp falls in the mega-cap U.S. tech businesses overnight, with the likes of Netflix, Amazon and Facebook all falling between 2%-7%.

Australian investors have followed their lead by sending shipping logistics software-as-a-service business WiseTech Global Ltd (ASX: WTC) 6% lower, while language translation business Appen Ltd (ASX: APX) is down 6.2% and market darling Afterpay Touch Group Ltd (ASX: APT) is down 5%.

Elsewhere software business Altium Limited (ASX: ALU) lost 6%, with Nextdc Ltd (ASXL NXT) down 4.6% and internet business Trade Me Group Ltd (ASX: TME) giving up 6.6% on no news.

The wild price swings show how sentiment can drive share prices higher or lower over the short term, which can provide a buying opportunity for patient investors. Even over a relatively short period of 6-12 months though revenues and profits will determine the direction of a company's valuation.

Some of the above mentioned stocks like WiseTech are trading on unprecedented multiples of sales and as such investors should remember returns are always a function of price paid no matter the underlying quality of a business.

Motley Fool contributor Tom Richardson owns shares of Altium, Amazon and Facebook. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, Appen Ltd, and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought
Share Market News

5 things to watch on the ASX 200 on Wednesday

Here's what to expect on the local share market today.

Read more »

Miner puts thumbs up in front of gold mine quarry
Gold

Why Macquarie expects this ASX 200 gold stock to surge 55%

Macquarie forecasts a big rebound ahead for this beaten down ASX 200 gold miner.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Share Market News

Aussie investors increase ASX shares and sell investment properties

More Australian investors are receiving dividend income each year, new tax data shows.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a nervous, but positive, Tuesday for ASX investors.

Read more »

A susccesful person kicks back and relaxes on a comfy chair
Best Shares

If I could only buy and hold a single ASX share forever, it would be this one

There are two reasons why this stock is my first choice...

Read more »

young woman reviewing financial reports at desk with multiple computer screens
Opinions

Brokers' verdict on 4 popular ASX 200 financial stocks

Financials outperformed every other sector in FY25. What should you do now with these 4 stocks?

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Share Gainers

Why Bapcor, Ramelius, Sandfire, and WIA Gold shares are rising today

These shares are having a better day than most on Tuesday. But why?

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

Is it too late to invest in the record setting S&P 500 stock gains?

A top broker reveals what to expect next from the surging S&P 500 Index.

Read more »