It doesn't happen often.
A group of high-quality ASX tech stocks, many of them with global businesses, all falling heavily at the same time.
But that's exactly what we're seeing right now.
Driven by concerns around interest rates, valuation resets, and, more recently, artificial intelligence (AI) disruption, a number of well-known names have been pushed 35% to 60% below their highs.
That doesn't automatically make them buys. But it does make them worth a closer look.
Here are five I think stand out.
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Xero Ltd (ASX: XRO)
Xero has gone from market darling to market concern in a relatively short period of time. But I still see a global accounting platform with strong positioning among small and medium-sized businesses.
It continues to grow its subscriber base and expand internationally, particularly in markets like the UK and North America.
The key for me is that accounting software is deeply embedded in operations. Once a business is using Xero, switching is difficult.
The share price may be down significantly, but the long-term growth opportunity still looks intact.
Pro Medicus Ltd (ASX: PME)
Pro Medicus is a very different kind of tech company. It operates in medical imaging software, supplying hospitals and healthcare providers with high-performance diagnostic tools.
What stands out is its reputation and track record. The company has consistently won large contracts, particularly in the United States.
Healthcare isn't a short-term trend. Demand for imaging and diagnostics continues to grow, supported by ageing populations and increasing healthcare needs.
After a sharp share price decline, I see an opportunity to buy a high-quality business with strong long-term potential at a better price.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne is one of the quieter success stories on the ASX. It provides enterprise software to government agencies, universities, and large organisations, with a strong focus on recurring revenue.
What I like here is the consistency. The company has steadily grown its earnings over time while transitioning customers to its cloud platform.
That creates visibility and predictability, which is valuable in any environment.
It may not attract the same attention as some other tech names, but I think its reliability is part of what makes it appealing.
Life360 Inc. (ASX: 360)
Life360 brings a different type of growth exposure. Its app connects families through location sharing and safety features, and it has been building a large global user base.
The business is now focused on monetisation, converting users into paying subscribers, and expanding its product offering.
There's still execution risk here, particularly with recent acquisitions, but I think the opportunity is significant if it continues to scale successfully.
With the share price down heavily, the market appears to be questioning that path, which is where I think potential upside can emerge.
Catapult Sports Ltd (ASX: CAT)
Catapult sits at the heart of sports and technology. It provides performance analytics and wearable technology to professional sports teams around the world.
What I find interesting is its niche positioning. It has built strong relationships across elite sports leagues like the NBA, EPL, and NFL, which gives it a level of defensibility.
The business has been moving toward a recurring revenue model, which could improve stability over time.
Like many ASX tech stocks, it hasn't been spared from the recent sell-off, but the long-term opportunity in sports analytics remains.
Foolish Takeaway
When markets turn against a sector, everything tends to fall together.
Right now, ASX tech looks to be in that phase, with Xero, Pro Medicus, TechnologyOne, Life360, and Catapult shares all being hit hard despite their long-term growth potential.
There's no guarantee of a quick rebound. But for patient investors, I think this could be one of those once-in-a-decade periods where high-quality stocks are available at far more reasonable prices.
