Why these five ASX listed tech stocks have tumbled today

Highlights 

  • Australian tech stocks on Wednesday sank to their lowest since 4 August 2021.
  • The losses were broadly in line with the sell-off in the benchmark ASX 200, which hit its lowest since 2 June this year.
  • Domestic stocks too witnessed a decline, tracking weak overnight cues from Wall Street.

Australian tech stocks slipped about 3% on Wednesday, their lowest since 4 August 2021. The losses were broadly in line with the sell-off in the benchmark ASX 200, which plunged to its lowest level since 2 June this year. Domestic stocks fell, tracking weak overnight cues from Wall Street as the NASDAQ Composite plummeted 2.83% on Tuesday. The fall in US tech stocks was triggered by rising US Treasury yields as well as inflation concerns. Meanwhile, the Australian information technology index is up just over 5% as of last closing on Tuesday, against a 10.45% rise in the ASX 200.

On that note, let us zero in on five tech stocks which are under spotlight today:

Firstwave Cloud Technology Ltd (ASX:FCT)

Firstwave Cloud Technology shares fell 5.4% on Wednesday. The stock fell to AU$0.070 in intraday trade after its last closing at AU$0.074 on Tuesday.

The steep decline in FCT shares came as the company released its financial statement for the year ended 30 June 2021 on Wednesday. Its revenue for the year was AU$7,975,182 as against AU$8,252,880 in 2020. It represents a reduction of 3.4% over the prior comparative period.

The firm’s FY21 international revenue was significantly higher than FY20 but was below FirstWave’s expectations due to the impact from COVID-19.

NextDC Ltd (ASX:NXT)

Data solutions company NextDC fell over 5% on Wednesday. The stock fell to AU$11.83 in intraday trade after closing at AU$12.46 on Tuesday. Even as there was no market-sensitive trigger, the stock price may have fallen due to its high valuation of late. Investors may have booked profits in the past few weeks.

The stock has witnessed a challenging year so far, surging 7% since 1 January 2021. In the last 12 months, the stock has only gained just over 5%. In August, the stock fell a further 2.4% into the red. And in the past week, the stock has tumbled nearly 5.4%.

Appen Ltd (ASX:APX)

Appen is the third major loser among the ASX-listed tech stocks, having fallen 4.6% today. The stock fell to AU$8.70 in the intra-day trade after closing at AU$9.12 on Tuesday. Since the company hit its peak in August 2020, the stock is down by over 78%. Other than the rise in US bond yields, reduced predictability of the US monetary policy has also impacted the tech stock. Generally, investors are more likely to sell tech shares during uncertainty.

Bigtincan Holdings Ltd (ASX:BTH)

Bigtincan shares fell 4.5% on Wednesday. The stock fell to AU$1.27 in intra-day trade after closing at AU$1.33 on Tuesday. The stock has gained over 20% in the past one year. However, the stock price is flat for 2021.

The decline in the company’s share price today came despite its announcement of bagging a new contract earlier in the day.  Bigtincan has inked a contract with Asurion, LLC, for the deployment of Bigtincan’s Sales Enablement platform

The contract is valued at around AU$2 million for 36 months. The software will be used by Asurion channel partners across North America to deliver training, communications, etc.

Afterpay Ltd (ASX:APT)

BNPL giant Afterpay saw its shares fall 3.8% on Wednesday. The stock fell to AU$122.30 in intra-day trade after closing at AU$127.23 on Tuesday. The stock marked its worst day since 30 July 2021.

The decline in APT shares comes in the wake of Square shares slipping 5.97% to a 2-month low of US$242.70 overnight amid the rout in the US technology sector. Square is trading at its lowest levels since its takeover offer for Afterpay shook the BNPL world. The US tech firm’s shares had raced 10% on the day the offer was made.

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