SQ2, CPU, WTC, XRO: Why are these ASX tech stocks trading lower today?

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SQ2, CPU, WTC, XRO: Why are these ASX tech stocks trading lower today?

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ASX 200, tech stocks, Block Inc, Computershare Ltd., WiseTech Global Limited, and Xero Limited
Image source: © Gearstd | Megapixl.com

Highlights

  • The benchmark index ASX200 was 0.037% lower at 7146.200 points at 11:10 AM AEST today.
  • Seven sectors were seen trading in the red in the early morning trading hours on Tuesday (24 May).
  • The losses were led by the information technology sector, which was the worst performer during the intraday trading session today.

The Australian share market opened lower today despite positive cues from Wall Street. The benchmark index ASX200 was 0.037% lower at 7146.200 points at 11:10 AM AEST. Four sectors were trading higher in the early morning trading hours, and seven were seen trading in the red. Financial was the best performing sector, while the Information technology, telecommunication services and the Industrial sector, among others, traded in red.

The S&P/ASX 200 Information Technology (Sector) XIJ was 2.098% lower at 1492.600 points at 11:12 AM AEST. 

In recent months, valuation pressure has considerably increased on technology companies mainly due to the poor performance of tech stocks given the rising interest rates, inflation and the rise in bond yields. Normally, when bond yields increase, investors receive lesser returns at present by holding stocks that might give greater returns in the distant future. Consequently, they prefer value stocks over expensively priced technology stocks. This results in a drop in the prices of tech stocks.

In this article we will look at the share market performance of four ASX-listed tech companies in today’s intraday trading session. The four technology companies we will discuss in this article include- Block Inc (ASX:SQ2), Computershare Ltd. (ASX:CPU), WiseTech Global Limited (ASX:WTC), and Xero Limited (ASX:XRO).  

Image Source: © Hudik9 | Megapixl.com

Block Inc (ASX:SQ2)

The share price of ASX-listed digital payments company Block Inc slid 6.211% at AU$116.870 per share on ASX at 11:07 AM AEST today. Block Inc. shares have fallen 33.83% in the last 12 months, while the stock has also declined by the same percentage, 33.83% year-to-date (YTD). Block Inc commands a market capitalisation of AU$66.88 billion. 

Transaction, loan, and consumer receivable losses for the three months ended 31 March 2022 increased by $70.8 million, or 347%, compared to the three months ended 31 March 2021. 

 For the three months ended 31 March 2022, the company’s net revenue increased 42%, while its gross profit increased 41% compared to 2021. 

Computershare Ltd. (ASX:CPU)

The share price of ASX-listed stock transfer company Computershare Ltd. traded 1.231% lower at AU$24.070 per share on ASX at 12:44 PM AEST. In the last one year, Computershare Ltd. shares have risen 53.61%, while the stock has fallen 18.22% YTD. The company has a market capitalisation of AU$14.71 billion. 

WiseTech Global Limited (ASX:WTC)

The shares of WiseTech Global Limited traded in the red today, though there was no market sensitive announcement from its side on the ASX board. 

WiseTech Global Limited shares traded 2.438% lower at AU$41.405 per share on ASX at 12:34 PM AEST.

In the last one year, shares of WiseTech Global Limited have gained 53.52%, while the stock has fallen 30.76% YTD. The company has a market capitalisation of AU$13.85 billion.

The company primarily deals with designs and develops cloud-based logistics software solutions. 

Read More: Up 197% in one year: What’s powering Neuren (ASX: NEU) share price?

 Xero Limited (ASX:XRO)

The shares of Xero Limited were seen trading 2.177% lower today at AU$88.510 per share on ASX at 1:05 PM AEST. Xero Limited share price has fallen 30.56% in the last one year, while the stock is down 39.47% YTD. Xero Limited is an ASX-listed New Zealand based technology company with a market capitalisation of AU$13.53 billion.

In its full-year earnings to 31 March 2022 (FY22), the company reported operating revenue growth of 29% YoY, while its EBITDA was up 11%. 

Read More: FLT, WEB, QAN: Three ASX travel shares with highest YTD returns

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