It has been another disappointing day of trade for the Afterpay Touch Group Ltd (ASX: APT) share price.
In early trade Afterpay Touch's shares tumbled 10% lower to $13.89. They have since recovered slightly but are still down 7.5% to $14.29 at the time of writing.
This latest decline means the payment solutions company's shares have lost around 20% of their value since this time last week and are now down 39% from their all-time high of $23.00.
Is this a buying opportunity?
While I think that this could arguably be a buying opportunity for investors that are prepared to hold onto its shares for the long-term, I'm not convinced that its shares have bottomed yet.
The same applies to fellow tech stars Altium Limited (ASX: ALU), Appen Ltd (ASX: APX), and WiseTech Global Ltd (ASX: WTC).
All four of these shares look attractive for long-term investments but could easily fall further from here if bond yields widen.
This is because as bond yields widen and the risk-free rate increases, investors are likely to become unwilling to pay over the odds for shares.
This means high PE shares like Afterpay Touch, Altium, Appen, and WiseTech Global may be forced to trade on lower multiples to offer a sufficient risk/reward for investors.
Which should you buy?
When the dust settles I'd suggest investors take a look at Appen ahead of the other three on valuation grounds.
At present Appen's shares are changing hands at 34x estimated forward earnings. I feel this is starting to look reasonable given its current growth profile. If it were to fall another 10% then it could be time to be greedy.
But for now, I think it would be best to keep your powder dry and wait to see how the market fares over the coming days or weeks.
