Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Are ASX tech shares becoming a big opportunity?

Could ASX tech shares be a good opportunity as they drop lower? They keep falling, I think they're worth a look. 

Plenty of ASX tech shares could be getting into the buy zone right now. They keep falling, I think they’re worth a look.

What’s going on?

There are many ASX growth shares that have been slipping in recent times.

For example over the last three months, the Altium Limited (ASX: ALU) share price has fallen 28%, the Pushpay Holdings Ltd (ASX: PPH) share price has declined 32% and the Appen Ltd (ASX: APX) share price has dropped 37%.

Some of the declines have been more immediate than that, the SEEK Limited (ASX: SEK) share price is down 7% since 4 January 2021 and the REA Group Limited (ASX: REA) share price has dropped 7% over the same time period.

Why have tech shares been dropping? The straightforward answer is “who knows?”. Everyone sells (and buys) for different reasons – you’d have to ask the people who have been selling. Or, you’d have to ask people why they aren’t willing to buy shares for as much as a couple of weeks ago.

There have been plenty of events in the last few weeks.

The Democrats won control of the senate, which may have spooked some investors who are afraid of the ‘radical left’ having more control. On the other hand, that makes it more likely that the $2,000 stimulus cheques will go out to the population, which could be just what is needed right now.

However, it’s a generally accepted view that the Democrats may be a bit tougher on the large US tech shares, which could hurt their collective profit and that may be hurting investor sentiment. ASX tech shares do tend to follow US tech shares in the short term, even if those US issues have nothing to do with those ASX tech shares. The market is a funny beast.

COVID-19 and the associated impacts continue to hamper the economic recovery, particularly in the US and Europe. If the pandemic goes on longer than expected, or if there are problems with the vaccine’s distribution, take-up or effectiveness then that could hurt investor confidence a bit more.

What to make of all this?

The above mentioned issues, and other issues, may or may not be why share prices are moving now. Share prices are always moving in response to one thing or another on a day to day basis. But most news disappears into history very quickly.

Most of the time share markets keep marching higher, so it’s best to ignore the ‘noise’ of what’s going on.

I like to just focus on the buying part of investing: Is the opportunity I’m being presented with a good time to buy shares of a business? If you started waiting in March for the world to be rid of COVID-19 before investing then you would have missed out on the enormous investment gains since then.

That’s not a call to action to invest every dollar you have, but I believe you should always bet on the determination and ingenuity of the people in this world to make things better over time.

In my opinion, many of the tech shares that are getting sold are the businesses that have the best long-term growth potential. Pushpay, Microsoft and Alphabet are lower but they still have very compelling futures. I’d be happy to buy all of them day.

One of the other ASX growth shares to consider could be Redbubble Ltd (ASX: RBL).

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Altium.
Skip to content