The Motley Fool

Why Altium, Appen, & WiseTech Global shares have been hammered today

In early afternoon trade the S&P/ASX 200 index is in selloff mode and has dropped 0.85% to 6,180.7 points.

One of the biggest drags on the market on Friday has been the information technology sector. A number of popular tech shares have been sold off, leading to the S&P/ASX 200 Info Tech index dropping a disappointing 2.1% this afternoon.

Here is the current state of play in the sector:

The Altium Limited (ASX: ALU) share price is down 4.5% to $31.06.

The Appen Ltd (ASX: APX) share price has fallen 5% to $22.31.

The Bravura Solutions Ltd (ASX: BVS) share price has dropped 6.5% to $5.06.

The Nearmap Ltd (ASX: NEA) share price is down 4% to $2.86.

The WiseTech Global Ltd (ASX: WTC) share price has tumbled 5% to $22.07.

The Xero Limited (ASX: XRO) share price has dropped 3% to $49.54.

Why are tech shares being sold off?

With no news out of these companies or broker notes that I’m aware of, today’s decline appears to be a combination of profit taking and investors switching to risk off assets.

After all, even after the sizeable decline today, the S&P/ASX 200 Info Tech index is still up almost 22% since the start of the year. So I can’t say I’m surprised to see tech shares getting hit during this market volatility.

One group of shares benefiting from this selloff has been the gold miners. At the time of writing the S&P/ASX All Ords Gold index is up 1.2%.

Not all tech shares are in the red.

One exception is the Afterpay Touch Group Ltd (ASX: APT) share price which has managed to avoid the selloff and climb 3%. This appears to have been driven by a broker note out of Goldman Sachs this morning.

After revising its valuation approach and upgrading its estimates following a review of the latest indicators in the U.S. market, the broker retained its conviction buy rating and lifted the price target on its shares from $21.00 up to $27.10.

Need a lift after this selloff? Then check out this hot stock tipped for big things.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click here to learn more on how you can profit from the coming cannabis boom.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Nearmap Ltd. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.