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Key points
- The new year has seen a major sell-off for ASX tech shares
- But one expert thinks the ASX has withstood the worst of the sell-off
- She says the tech sector's struggles might have placed some quality stocks in the bargain bin
2022 heralded a major sell-off in ASX tech shares with some S&P/ASX 200 Index (ASX: XJO) technology giants seeing more than 30% slashed from their share price in just over a month.
However, some experts are optimistic about the sector, noting its plummet has placed some quality ASX tech shares in the bargain bin.
Let's take a look at which embattled stocks these industry professionals are most excited about.
Which ASX tech shares have experts feeling optimistic?
The S&P/ASX 200 Info Tech Index (ASX: XIJ) has slumped 21% year to date. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has plunged 17%.
The biggest fallers include ASX 200 giant Megaport Ltd (ASX: MP1). Its share price has tumbled 31% since the start of 2022.
The tech sector's plunge was likely driven by rising inflation and anticipation of interest rate increases. It was also helped along by a similar performance overseas – the tech-heavy Nasdaq Index has slumped 10.9% year to date.
However, the drop has also created "plenty of bargains" among ASX tech shares, according to Tribeca Investment Partners portfolio manager Jun Bei Liu.
She told The Australian that Xero Limited (ASX: XRO) was her pick of the bunch, with its 22% year to date tumble making it a "pretty good buying opportunity".
Additionally, Liu reportedly said WiseTech Global Ltd (ASX: WTC) is also on her radar after the sell-off.
However, Forager Funds chief investment officer Steve Johnson told the publication he believes WiseTech is still overvalued. Yet, he reportedly agrees with the assessment of Megaport's stock, despite its notable drop.
In the small-cap space, Johnson is optimistic about Bigtincan Holdings Ltd (ASX: BTH). Shares in the sales enablement platform have slipped 16% so far in 2022.
Whether ASX tech shares will continue to fall is, as always, anyone's guess.
But Liu reportedly believes the worst is now over.
