ASX tech shares like Afterpay Ltd (ASX: APT) have been hit hard by concerns over COVID-19. But while the WAAAX shares might be falling lower, it's not just contained to the ASX.
In the United States, many of the biggest tech shares on the market have crashed lower in March. So, how do their performances stack up?
ASX tech shares versus their US counterparts
It's worth pointing out that ASX tech shares are not on the same size and scale as those in the US. Xero Limited (ASX: XRO) is the largest of the WAAAX shares by market capitalisation and weighs in at $11.4 billion at the time of writing. In contrast, Netflix Inc (NASDAQ: NFLX) is worth an eye-watering US$147.57 billion.
In the last month, Netflix shares have fallen 13.28% lower to US$336.30 per share. Meanwhile, Afterpay shares have plummeted 41.19% to $23.24 per share in the same period of time.
It's a similar story if we look at an absolute behemoth of the markets in Apple Inc. (NASDAQ: AAPL). The Apple share price has been hit hard by COVID-19 concerns but is down just 12.86% in the last month. Amongst the ASX tech shares, Xero shares are holding their value quite well but are still down 9.16% per share at the time of writing.
That's impressive, but you have to consider the difference in relative value as well. Apple shares trade at a price to earnings (P/E) multiple of 21.95 times with a 1.11% dividend yield. Xero shares trade at a P/E of 4,312.77 times with no dividend paid as yet.
Does this mean I should buy into US shares?
It is true that the ASX tech shares have struggled to hold their values like their US counterparts during the COVID-19 crash. However, I wouldn't go all-in on US tech shares just yet despite Netflix's potential as a perfect coronavirus stock. It's worth comparing apples to apples, and the Aussie tech shares have done better than many others like the travel sector.
It is true that we rely a lot on China for growth in many sectors including tourism, construction, mining and education. However, now is not the time to panic, and could actually be a great buying opportunity. Aside from complicated tax implications, I would prefer to invest at home and diversify my portfolio here in Australia.
