Here’s why ASX 200 tech shares are under pressure on Tuesday

What’s weighing on ASX technology shares today?

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Key points

  • The ASX All Technology Index is 2.5% in the red today 
  • ASX 200 tech shares falling include Block, Xero, and TechnologyOne 
  • Snapchat, Meta Platforms, and Twitter shares plunged in after-hours trading in the US. Snapchat advised the macroeconomic environment has deteriorated "further and faster" than expected

ASX 200 tech shares are having a tough time on the market today.

The S&P/ASX All Technology Index (ASX: XTX) is falling 2.46% at the time of writing to 2,093.9 points. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.04% today.

Let’s take a look at what could be impacting ASX 200 tech shares.

ASX tech shares fall

ASX 200 tech shares Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) are falling 6.1% and 2.2% respectively today. Meanwhile, WiseTech Global Ltd (ASX: WTC) is down 2.3% and TechnologyOne Ltd (ASX: TNE) has shed 1.8%.

ASX technology shares could be reacting to news from the United States. Technology shares on the ASX often follow the trends of US counterparts.

The Snap Inc (NYSE: SNAP) share price has plunged more than 31% in after-hours trading on the New York Stock Exchange.

In a US Securities and Exchange Commission filing, Snapchat advised it would likely miss its revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) targets.

Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range. 

This news appeared to impact overall sentiment in the sector, with many of Snap’s peers falling after hours, as the CNBC noted.

Nasdaq Futures are falling 1.30% at the time of writing. Meta Platforms Inc (NASDAQ: FB) shares plunged 7% in after-hours trading, while Twitter Inc (NYSE: TWTR) shares dropped 3.72%, Pinterest Inc (NYSE: PINS) fell nearly 12% and Trade Desk Inc (NASDAQ: TTD) slid nearly 9%.

Closer to home, TechnologyOne shares plunged nearly 5% in earlier trade before recovering slightly to the current share price of $10.22. As my Foolish colleague James reported today, the ASX 200 tech share reported strong first-half growth. Total revenue jumped 19% to $172.5 million, while profit after tax leapt 18% to $33.2 million.

Share price snapshot

The All Technology Index has dived nearly 20% in the past year, while it is plunging nearly 30% year to date.

In the past month, the index has fallen 11%, while it is virtually flat over the past week.

For perspective, the benchmark ASX 200 has climbed 1.5% in the past year.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Meta Platforms, Inc., Pinterest, The Trade Desk, Twitter, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Meta Platforms, Inc., Pinterest, and The Trade Desk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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