Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) have both been hit hard.
Xero shares are down around 60% from their high, while WiseTech Global Ltd shares are down almost 70% from their high.
Falls that large can make investors nervous, but they can also create opportunity when the underlying businesses remain strong.
I rate both of these ASX tech shares highly. In fact, I would be happy to own both in a long-term portfolio. But if I had to choose only one today, this becomes a much harder decision.
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Why I like Xero shares
Xero is one of the best software businesses on the ASX in my view.
The company started with accounting software, but I think the bigger opportunity is becoming a broader financial operating system for small businesses.
Small business owners need help with invoicing, payroll, payments, tax, reporting, cash flow, and financial decision-making. Xero sits close to those daily workflows, which can make the platform very sticky once customers rely on it.
The US opportunity is a key reason I rate Xero highly. It will not be easy, given the competitive landscape, but even modest success in that market could add meaningfully to the company's long-term growth runway.
The risk is valuation and execution. Xero still needs to keep growing, improving margins, and proving it can win outside its strongest markets.
But I think the share price fall has made a high-quality software business look very attractive.
Why I like WiseTech shares
WiseTech is also a world-class ASX technology share.
Its CargoWise platform is used in complex global logistics and freight forwarding workflows. This is not light, optional software. Global trade involves documentation, customs, compliance, routing, pricing, transport, and endless exceptions.
That complexity is why I like the business. When software becomes deeply embedded in a customer's operations, it can be difficult to replace. WiseTech has built a strong position in a specialised industry where domain knowledge is very important.
I also think AI could be genuinely useful for WiseTech. Logistics still involves a lot of manual data entry, document checking, compliance work, and exception handling. If AI agents can reduce some of that workload, WiseTech's platform could become even more valuable to customers.
The acquisition of e2open also gives WiseTech a broader opportunity across trade, supply, demand, and connected supply chain networks. That adds complexity, but it also expands the possible prize.
Which would I buy?
This is close, because I think both businesses have strong long-term potential.
But if I had to buy only one today, I would choose WiseTech.
The main reason is the combination of share price weakness and embedded industry position. A fall of almost 70% from its high is not something to ignore, and there are clearly risks around execution, integration, valuation, and investor confidence.
But I think WiseTech's role in global trade software is extremely hard to replicate. The business operates in a complex market, serves mission-critical workflows, and has a practical AI opportunity that could help customers save time and reduce errors.
Xero remains a share I would happily buy as well. Its small business platform opportunity is excellent. But at today's prices, WiseTech edges ahead for me because the risk/reward looks slightly more compelling.
Foolish takeaway
This is not a case of one good ASX tech share and one bad one.
I think Xero and WiseTech are both high-quality businesses with long growth runways. Both could be much larger in a decade if management executes well.
But if I had to make the difficult choice today, I would buy WiseTech first. The sell-off has been severe, the business remains deeply embedded in global logistics, and the AI opportunity looks directly tied to real customer pain points.
For patient investors, I think that makes it the more compelling buy right now.
