It's been a brutal time recently for ASX technology stocks.
The S&P/ASX All Technology Index (ASX: XTX) has sunk 3.6% over the past week as news of the COVID-19 Omicron variant emerged. Over the past month tech shares have fared even worse, losing a painful 5.44%.
But that's now presented some buying opportunities.
Shaw and Partners portfolio manager James Gerrish did warn on a Market Matters video that there are some medium-term risks for tech companies.
"Higher interest rates, as [viewers] would know ad nauseum, is a negative for these high-valuation, long-duration assets like technology."
Nevertheless, there are 3 ASX tech shares at the moment that Gerrish considers as potential bargains:
'A clear, outstanding buy'
Internet service provider Aussie Broadband Ltd (ASX: ABB) has served its investors exceptionally since listing in October 2020 after an initial public offer price of $1 per share.
The stock closed at $5.21 on Thursday afternoon, even after losing 4.4% for the day.
That equates to a 421% return for those lucky enough to buy in at the IPO.
Gerrish reckons Aussie Broadband is still a fine investment.
"We think that's a clear, outstanding 'buy' around that $5.20 mark at the moment," he said.
"It's certainly a stock that we like in the portfolio."
According to CMC Markets, 4 of 6 analysts agree with Gerrish, rating Aussie Broadband shares as a "strong buy".
Financial platforms are so hot right now
Gerrish currently is a fan of the financial "platform businesses".
He revealed that his funds hold both Praemium Ltd (ASX: PPS) and Hub24 Ltd (ASX: HUB).
"To me, the independent platform businesses have got such tailwinds around how investors are holding their assets," he said.
"And the huge uplift in the value of investable assets over time."
On Thursday, both Hub24 and Praemium shares lost more than 3% for the day, closing at $27.87 and $1.40 respectively.
Gerrish knows when he'll jump in.
"I'd be happy to buy Hub sub-$30 and Praemium in the $1.30s as well."
