ASX tech shares were smashed on Wednesday but one leading fundie thinks that now could be the time to buy.
What happened to ASX tech shares?
Big-name tech companies like Afterpay Ltd (ASX: APT) were smashed on Wednesday as a broader tech stock sell-off in the United States continued.
Tesla Inc. (NASDAQ: TLSA) shares fell 10.3 per cent on Wednesday after disappointing battery day updates. Tesla announced work to produce a car costing US$25,000 as it looks to reduce production costs while also announcing a new Model S ‘Plaid’ with a luxury price tag.
Investors were not impressed by the updates and it sparked another broad tech sell-off overseas. ASX tech shares were not immune with the Afterpay share price now down 8.2% since 10.30am on Wednesday morning.
Why a leading fundie thinks its time to buy
According to an article in the Australian Financial Review (AFR), Frazis Capital Partners portfolio manager Michael Frazis thinks it could be time to buy.
Frazis thinks now could be a good entry point for investors looking to invest in the future. The fundie doesn’t think that the volatility has subsided with a real chance of further short-term downside.
However, increased volatility could introduce buying opportunities for investors willing to roll the dice.
Is now really a good time to buy?
No one has a crystal ball for this sort of stuff. It’s hard to know whether there are further losses on the way or ASX tech shares are set to surge.
I think there are some like Afterpay that could see further correction given just how far they’ve surged in 2020. However, I’m sure there are pockets of tech that still have further to go if investors are willing to hunt for bargains.
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Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.