Two ASX-listed tech shares to look at amid sell-off

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Two ASX-listed tech shares to look at amid sell-off

 Two ASX-listed tech shares to look at amid sell-off
Image source: whiteMocca,Shutterstock

Highlights

  • Tech stocks have faced challenges in the past six months, with some leading names reporting a significant fall.
  • During the given period, while the ASX All Technology index fell by over 4%, the ASX 200 gained over 1%.
  • The slump in tech stocks came was witnessed after the US Federal Reserve announced interest rate hikes in 2022.

The last six months have been challenging for the ASX-listed technology shares, with majority of the leading names witnessing a significant slump. Leading tech stocks such as Afterpay and Zip have fallen by nearly 40% and over 50%, respectively, over the period.

During the same period, while the ASX All Technology index fell by over 4%, the ASX 200 gained over 1%. Tech stocks mainly recorded losses after the US Federal Reserve announced interest rate hikes in 2022. Tech stocks which are valued higher than their current earnings are expected to deliver lower future profits when interest rates rise.

On this note, we will discuss two ASX-listed shares that could be looked at amid sell-off:

WiseTech Global Ltd (ASX:WTC)

WiseTech Global is an information technology company that provides software solutions to the logistics industry, globally. The stock of the ASX-listed company has surged over 76% in the past six months, while in the past month, it is up 0.04%.

The stock has risen following strong FY21 results. The company’s net profit doubled to AU$105.8 million on revenue of AU$507.5 million.

The company expects another strong year of growth in FY22. According to the fiscal guidance provided by the company, its revenue is expected to rise 18%-25% in FY22. The earnings before interest, tax, depreciation, and amortisation (EBITDA) would rise 26% to 38%.

TechnologyOne Ltd (ASX:TNE)

Technology One is an information technology company which deals in Software Sales, Services, R&D. It is also engaged in the development, marketing, implementation, and support of enterprise business software solutions.

The stock of the ASX-listed company has surged over 25% in the past six months. In the past month, the stock is down nearly 11%.

The stock has mainly gained following its acquisition announcement despite full-year results which were below expectations. The company recently announced acquisition of the Scientia Resource Management, a UK-based company servicing the higher education sector.

Meanwhile, in FY21, the company delivered revenue growth of 4% to AU$312 million, a touch below expectations.

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