WiseTech Global Ltd (ASX: WTC) shares are storming higher today. At the time of writing, the tech shares are up 11% to $44.27 a piece.
Today's uptick means WiseTech shares are now 21% higher over the past five days alone. There is a long way to go before the share price recovers the losses shed over the past eight months but it's a positive step in the right direction.
The shares are now down 36% for the year-to-date and 48% lower than this time last year.
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What has pushed WiseTech shares so low this year?
The past eight months have been a bloodbath for WiseTech shares. The company has faced significant headwinds which has sent its share price continually crashing.
WiseTech was caught up in a tech-sector wide sell-off earlier this year after investors became panicked that AI could disrupt traditional software models. Many were worried that AI tools might replace or reduce demand for subscription-based software.
There was also concern that tech shares were overvalued and overpriced.
Concerns about escalating conflict in the Middle East also spooked investors who were worried about the wider implications for sharemarkets. In March, the ASX saw investors turn their back on high-growth technology stocks like WiseTech and rotate towards more stable assets instead.
And why is WiseTech flying higher today?
There hasn't been any price-sensitive news out of WiseTech recently to explain today's price hike, so it's most likely sentiment driven.
ASX tech sector shares are climbing higher today with the S&P/ASX 200 Information Technology Index (ASX: XIJ) up 7% for the day at the time of writing, and trading at a one-month high. For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.4%.
It looks like investors are regaining confidence in the ASX tech shares off the back of a retreat in macro fears. Investors perhaps think the worst from the US-Iran war, and inflation fears, is now mostly priced in.
After a strong rebound, investors may now consider the stock as trading at good value.
What's next? Are the shares a buy, sell or hold?
It looks like this could be the beginning of a large rally for WiseTech shares.
According to TradingView data, analysts are incredibly bullish about the outlook for WiseTech shares over the next 12 months.
Most have a buy or strong buy rating on the stock (14 out of 16). They tip a potential upside of up to 178% to $123.10, at the time of writing.
