One ASX growth stock down over 50% to buy and hold

A 50% share price drop doesn't always mean a broken business. Here's why this ASX growth stock still looks compelling.

It's never easy watching a high-quality ASX growth stock fall heavily.

WiseTech Global Ltd (ASX: WTC) shares hit a multi-year low of $40.31 on Monday, taking their decline over the past year to just over 50%.

The key question is whether the business has deteriorated to match it.

From what I can see, the answer is no.

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward.

Image source: Getty Images

This ASX growth stock is still moving forward

When I look past the share price underperformance, I still see a company with strong momentum.

WiseTech continues to grow, expand its platform, and deepen its position in global logistics software. Its CargoWise platform is used by major freight forwarders and logistics providers around the world, and once embedded, it becomes very difficult to replace.

The company is also scaling rapidly.

Its latest half-year update showed total revenue up 76% and EBITDA up 31%, supported by both organic growth and the integration of e2open.

This isn't a business that has stalled. It's still expanding.

AI is a risk, but also a major opportunity

A big part of the recent selloff appears to be tied to concerns around artificial intelligence (AI).

The fear is that AI could disrupt software companies by reducing the need for traditional platforms.

But in WiseTech's case, I actually think AI strengthens the investment case.

Management has been very clear that AI is being embedded into the platform to increase automation, improve customer outcomes, and drive efficiency.

In fact, the company has stated that AI is creating "a step change in customer value proposition" and enabling significantly more automation across its software.

Rather than replacing WiseTech, AI could make its platform more valuable and more deeply integrated into customer workflows.

The moat is bigger than just software

Another point that I think is often overlooked is what actually makes WiseTech hard to compete with.

It's not just the software itself.

The company has built a global network across the logistics ecosystem, connecting thousands of participants and embedding itself into real-time workflows.

That network effect is difficult to replicate.

According to its recent update, WiseTech now connects over 500,000 enterprises across manufacturing, logistics, and distribution, reinforcing its position as a central platform in global trade.

That kind of scale creates a moat that goes well beyond code.

A signal from management

One detail that caught my attention recently was insider buying.

WiseTech's CEO, Zubin Appoo, purchased around $1 million worth of shares on market following the latest results.

That doesn't guarantee anything, but it does suggest confidence from someone with the best visibility into the business.

In my experience, that's usually worth noting.

Why I think this could be an opportunity

A 50% share price decline often reflects a combination of concerns.

In this case, it looks like a mix of tech sector weakness, AI disruption fears, and uncertainty around integration and execution.

But when I step back, I still see a business with strong annual recurring revenue, a deeply embedded global platform, expanding scale and capability, and a clear strategy around AI.

The share price has fallen sharply, but the long-term story appears largely intact.

That's usually where I start to get interested.

Foolish takeaway

This ASX growth stock has been hit hard by market sentiment, pushing it down more than 50% and to multi-year lows.

But the business itself continues to grow, evolve, and strengthen its position in global logistics.

AI may be creating uncertainty in the short term, but I think it has the potential to enhance, not disrupt, WiseTech's platform over time.

For patient investors, this looks like the kind of setup that could be worth buying and holding for the long term.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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