The WiseTech Global Ltd (ASX: WTC) share price has been a standout performer in 2019, surging nearly 60% higher alongside its "WAAAX" peers.
Despite a difficult August so far, the WiseTech share price has edged higher after the Aussie logistics group announced a new acquisition this morning.
What did WiseTech announce this morning?
WiseTech announced the acquisition of a US-based container yard and terminal management logistic solution company for $4.4 million upfront.
Depot Systems is a leading provider of container yard management, maintenance and repair estimating, with WiseTech paying $4.4 million with a further multi-year earn-out potential of $2.7 million.
While this may seem like small change for a company that boasts an $8.52 billion market cap, CEO Richard White said the acquisition is a "valuable addition to build further opportunities" for the company's technology solutions.
Given Depot System currently has annual revenue of just $1.3 million, WiseTech said it does not expect it to be of material value to the company's earnings despite its strategic significance.
The transaction is the latest for WiseTech following a spending spree that has seen it increase its footprint across Australasia, Europe and South America.
How has the WiseTech share price performed in 2019?
The WiseTech share price has been a top performer on the S&P/ASX 200 (INDEXASX: XJO) index so far this year, soaring 57% higher YTD.
However, growth has tapered in August with the WiseTech share price falling 17% lower alongside its fellow WAAAX stocks in Appen Ltd (ASX: APX), Afterpay Touch Group Ltd (ASX: APT), Altium Ltd (ASX: ALU) and Xero Ltd (ASX: XRO).
The biggest tech stocks on the ASX, alongside the Resources sector, have been hammered this month as the US–China trade war tensions have heated up and caused concerns for short- to medium-term growth.
The Aussie logistics solutions group is expected to report its full-year results for FY19 on Wednesday, with Altium scheduled to report its earnings this afternoon.
All eyes are sure to be on the WAAAX stocks as a barometer for this August reporting season, and I'd expect any signs of slowing growth to be punished by investors heading for the exit.
