ASX tech shares sink amid Megaport (ASX:MP1) crash and NASDAQ fall

ASX technology shares had a shocker today.

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a group of people gathered around a laptop computer with various expressions of interest, concern and surpise on their faces. All are wearing spectacles.

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Key points

  • ASX 200 tech shares had a tough day on Wednesday
  • Technology shares followed a similar pattern as on US markets overnight
  • Megaport had a particularly grim day, falling 16%.

ASX technology shares finished in the red today after a tech selloff on the NASDAQ overnight and with Aussie tech company Megaport falling dramatically.

The S&P/ASX All Technology Index (ASX: XTX) fell 1.71% today while the S&P/ASX 200 Info Tech (ASX: XIJ) finished 2.56% lower. The Megaport Ltd (ASX: MP1) share price had a particularly disastrous day, shedding 16.15%.

Let’s take a look at what weighed on technology shares today.

Tech shares fall

ASX tech shares fell after the NASDAQ-100 Technology Sector Index (NASDAQ) dropped 3.39% in the US overnight. Australian technology shares often follow in the footsteps of their US peers, as Motley Fool Australia has noted previously.

Megaport led the pack in share fallers today. The company’s shares fell to their lowest level in 8 months, closing at $15.32. This is the worst result for the company’s shares since 7 June, when the company’s shares finished at $15.24.

As my Foolish colleague James reported earlier, investors appeared to expect better growth in the company’s second-quarter update.

Despite the company reporting an 8% gain in second-quarter revenue to $26.6 million, investors sold down the share.

The Afterpay Ltd (ASX: APT) share price also fell 2.81% while Xero Limited (ASX: XRO) sunk 2.36%.

Meanwhile, Altium Limited (ASX: ALU) dropped 1.95% and TechnologyOne (ASX: TNE) fell 1.52%.

However, Appen Ltd (ASX: APX) bucked the trend today, gaining 3.87% to finish at $10.47.

Sadly, Afterpay’s drop today coincided with its last day trading on the market. The company will be taken over by Block Inc (NYSE: SQ) and replaced on the ASX with SQ2 shares.

ASX technology share recap

The All Technology Index has fallen 5.78% in the past year, while the Info Tech index has dropped 14.69%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 8.75% in the past year.

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The author has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Altium, Appen Ltd, and MEGAPORT FPO. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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