Down 70%: 3 reasons why WiseTech shares could be a buy

This ASX tech share has been under serious pressure, but I think the sell-off may have created a more interesting setup for patient investors.

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WiseTech Global Ltd (ASX: WTC) shares have been under the pump.

The share price is down almost 70% from its 52-week high, which tells us the market has become far more cautious on the logistics software business.

That kind of fall should not be ignored. It can point to real concerns around valuation, expectations, execution, leadership, or growth.

But it can also create a more interesting setup for patient investors. WiseTech is still a high-quality global technology business, and I think there are three reasons why its shares could be worth a closer look today.

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.

Image source: Getty Images

Its software is deeply embedded

The first reason is the role WiseTech plays for its customers.

This is not a simple software tool that sits on the edge of a business. CargoWise is used by logistics providers and freight forwarders to help manage complex global trade workflows.

WiseTech says it serves more than 22,000 logistics companies and other industry participants across 193 countries, including 23 of the top 25 global freight forwarders. It also says the acquisition of e2open has expanded its network to more than 500,000 connected enterprises.

That kind of reach is important. Global logistics is complicated, heavily regulated, and full of time-sensitive processes. If software becomes deeply embedded in those workflows, it can be hard for customers to replace.

That does not make WiseTech immune from competition or mistakes. But it does give the company a strong base to build from.

The opportunity is getting bigger

The second reason is that WiseTech is no longer just trying to serve one part of the logistics market.

CargoWise remains the foundation of the business, but the company is now talking about a broader role across global trade, supply and demand, trade finance, customs, border agencies, verified identity, trust, trade, and data.

In a recent presentation, WiseTech described itself as "critical digital infrastructure" for multiple deep vertical markets. It also highlighted logistics and transport, trade and supply, trade finance, customs and border agencies, and verified identity as areas of long-term opportunity.

That sounds ambitious, and investors should treat ambitious growth plans with some caution.

But I think the direction makes sense. Global trade is not getting simpler. Tariffs, compliance, sanctions, supply chain disruption, customs rules, and documentation requirements are all creating more complexity.

Businesses do not just need software that records what happened. They need systems that help them manage risk, automate workflows, and connect different parts of the trade process.

If WiseTech can execute, the company may have a much larger addressable market than investors are currently pricing in.

AI could make the platform more valuable

The third reason is artificial intelligence (AI).

I do not think AI should be used as a lazy reason to like every technology stock. But in WiseTech's case, I can see a practical use.

The logistics industry still has a lot of manual work. Documents need to be checked. Customs classifications need to be managed. Exceptions need to be handled. Data needs to move between different parties and systems.

WiseTech says agentic AI can help drive customer efficiencies, including by capturing, structuring, and applying data directly, reducing manual and repetitive data entry across workflows. It also said AI agents are already in production, with more in development.

If AI can save customers time and reduce errors, that could make WiseTech's software more useful, not less.

Foolish takeaway

A share price fall of almost 70% is a clear reminder that WiseTech shares are not risk-free.

The market is no longer giving the business the same benefit of the doubt it once did. That means execution needs to improve, and investors will want evidence that the broader strategy can translate into durable earnings growth.

But I think the sell-off has made the stock more interesting. WiseTech still has a strong position in a complex global industry, a bigger market opportunity ahead, and a practical path to use AI in ways that could help customers.

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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