One of the best performers on the ASX 200 on Wednesday has been the WiseTech Global Ltd (ASX: WTC) share price.
In late morning trade the logistics platform company’s shares are up over 5% to $18.91.
Why is the WiseTech Global share price storming higher?
With no news out of the company or broker notes that I’ve seen, I suspect that investors are piling into tech shares like WiseTech Global today after regaining their appetite for risk following positive trade talks between the United States and China.
According to CNBC, Apple CEO Tim Cook told the news outlet that he is “very optimistic” about US-China trade talks.
Although Mr Cook acknowledges that it is a very complex trade agreement that needs to be updated, he expects it to happen.
In light of this, Mr Cook believes the recent economic weakness in China, which was blamed for the decline in iPhone sales, is only temporary.
Unsurprisingly, this led to a strong trading session on Wall Street which saw the Nasdaq technology index rise 1.1%.
What about the rest of the WAAAX group of shares?
It isn’t just WiseTech Global that has pushed notably higher today. Fellow WAAAX shares Afterpay Touch Group Ltd (ASX: APT), Altium Limited (ASX: ALU), and Appen Ltd (ASX: APX) are all notably higher in late morning trade.
The final constituent of the group, Xero Limited (ASX: XRO), is higher today, but not to the same degree as the others. The business and accounting software company’s shares are currently 0.5% higher at $43.77.
Should you invest?
Whilst I think that WiseTech Global’s shares are in the buy zone right now, due to its valuation I would only recommend it to investors with a high tolerance for risk.
Altium and Appen might be better for regular investors looking for a little exposure to the tech sector. I feel their respective shares are trading on more reasonable valuations at present, though still at a premium to the market average.
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia has recommended Apple. 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.