Some of the leading lights among the S&P/ ASX200 (ASX: XJO) are starting to shine again with the group of companies bestowed the WAAAX acronym all moving higher since Christmas 2018 and generally outpacing the market's gains.
The gains generally mirror those on the world-leading tech-heavy NASDAQ index in the U.S. as investors bet on internet and software stocks delivering the best earnings growth thanks to the scalability of the sector.
Let's take a look at the scoreboard gains for the WAAAX shares over the past month:
- WiseTech Global Ltd (ASX: WTC) is up around 17% to $20.33
- Altium Limited (ASX: ALU) is up around 20% to $25.62
- AfterPay Touch Group Ltd (ASX: WTC) is up around 26% to $16.31
- Appen Ltd (ASX: WTC) is up around 30% to a record high of $16.98
- Xero Limited (ASX: WTC) is up around 1% to $42.10
As Warren Buffett famously said investors should get greedy when others are fearful and fearful when others are greedy.
Anyone brave enough to buy these companies on Christmas Eve when all the talk was of a looming global recession on the back of an inverted yield curve would be sitting on handsome profits today.
Still these short-term gains won't mean anything if these tech stars don't deliver strong interim profit reports this February so investors should brace for some potential turbulence ahead.
