Once upon a time, the 'WAAAX' shares were some of the hottest companies on the ASX. This exclusive group of Aussie tech companies boasted gains that rivalled that of the famed "FAANG" group of stocks in the United States.
However, the coronavirus pandemic has thrown a rather large spanner in the works. 2021 has been something of a mixed bag for investors in this group. Here's what's driving share price performance for each of the Aussie growth shares.
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What are the WAAAX shares?
The group is an acronym made up of the following ASX tech shares: WiseTech Global Ltd (ASX: WTC), Afterpay Ltd (ASX: APT), Appen Ltd (ASX: APX), Altium Limited (ASX: ALU), and Xero Limited (ASX: XRO).
These ASX 200 companies have been rocketing higher in recent years despite exposure across different areas of technology. However, a pullback from growth shares more broadly in 2021 has hit many of these WAAAX shares.
The Appen share price is the worst performer amongst the group, falling 65.2% lower in 2021. Appen shares are trading at a 3-year low hit by broader market sentiment and weaker than expected FY21 earnings.
Xero is another one of the tech darlings under pressure in 2021. The Xero share price has fallen 7.2% lower this year but remains up 36.8% in the past 12 months.
While not seeing declines, growth in both the Afterpay and Altium share prices has been subdued in 2021. Altium shares have gained 1.1% this year while Afterpay is up just 2.5% after continued gains in recent years.
There has been one stand out amongst the WAAAX shares: WiseTech. The WiseTech share price has been on a tearing run and has gained 70.9% this calendar year.
The largest gains within the year came after WiseTech's FY2021 earnings results. WiseTech shares surged 28.5% higher in the space of a day after doubling net profit to $105.8 million and reporting that earnings before interest, tax, depreciation and amortisation (EBITDA) are up 63% to $206.7 million.
Foolish takeaway
Clearly, 2021 has been something of a mixed bag for investors in WAAAX shares. While WiseTech has rocketed higher, shares in the likes of Altium, Afterpay and Xero have underperformed. Then there's the Appen share price, which investors have watched slide lower throughout September.
