Altium Limited (ASX:ALU) share price falls almost 10%

The Altium Limited (ASX: ALU) share price has fallen nearly 10% in a very painful day for the electronic PCB software business.

If you want to point the finger somewhere then you can look no further than the US share market.

The S&P 500 fell 1.66% earlier today. The NASDAQ dropped a painful 3.26% but it was the largest individual constituents that felt the most pain.

Apple fell nearly 4%, Amazon dropped 5%, Microsoft declined 3.4%, Facebook declined 5.7%, Alphabet (Google) went down 3.8% and Netflix dropped 5.5%.

Altium is often seen as a proxy on the ASX for the FAANG shares. Its ASX tech peers didn’t fare so well today either with Afterpay Touch Group Ltd (ASX: APT) dropping another 4.8%, Xero Limited (ASX: XRO) fell 5.4%, Appen Ltd (ASX: APX) declined 2.2% today and WiseTech Global Ltd (ASX: WTC) went down 1.8%.

Of course, none of the businesses that I’ve mentioned in this article have seen their underlying intrinsic value fall by 5% or more today. It’s just investors selling for a price they can get. Indeed, it’s days like today that show how liquid the share market is – it takes more than a day to sell an investment property that’s for sure.

Some conservative investors think this decline in value of shares like Altium has been coming for a while. Whilst I’d agree with the thought that ASX tech sector got too frothy after reporting season a few months ago, the current valuations are looking more attractive.

Foolish takeaway

Even after today’s fall Altium is still trading at 41x FY19’s estimated earnings. So I’m not quite jumping in yet – if it fell below $20 then I’d be interested.

Altium has growing profit margins, quality clients, high recurring revenue and a growing dividend stream. There’s a lot to like about this technology-focused business for long-term growth.

Another share showing excellent long-term growth is this top ASX top stock which has been growing profit by double-digits every year.

This quality ASX growth stock just grew its dividend by 20%

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now