How have the WAAAX shares performed so far this year?

How are these ASX tech darlings performing so far this year?

| More on:
Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Motley Fool contributor 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 and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Five happy friends on their phones.
Share Market News

Goldman Sachs says these ASX tech stocks can rise 18% to 30%

The broker sees big returns on offer from these shares.

Read more »

A guy helps a girl lift a couch, both are laughing.
Technology Shares

3 of the best ASX tech shares to buy and hold until 2030

I think these stocks have exciting futures.

Read more »

A young woman uses a laptop and calculator while working from home.
Technology Shares

If I'd put $5,000 in Block shares 5 months ago, here's what I'd have now

Was it a good idea to invest in this payments stock five months ago?

Read more »

Close up of a sad young woman reading about declining share price on her phone.
Technology Shares

Why is the Brainchip share price sinking over 7% today?

What's going on with this tech stock on Wednesday?

Read more »

woman working on tablet
Technology Shares

Missed out on Nvidia? My best ASX tech stock to buy and hold

Do you have FOMO after the US chip maker's share price rocketed? Here's an Aussie company worth backing instead.

Read more »

Three businesspeople leap high with the CBD in the background.
Technology Shares

Guess which ASX small-cap stock is rocketing 45% on 'pivotal moment'

Investors have responded very positively to an announcement.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »