The S&P/ASX 200 Index (ASX: XJO) started the week off with a bang yesterday, including a massive rise for ASX technology shares.
Australia's benchmark index rose 0.6% points on Monday, while the S&P ASX All Technology (ASX: XTX) index rose 3.5%.
This included a massive rise for ASX technology shares:
- Life360 Inc (ASX: 360) rose 11.5%
- WiseTech Global Ltd (ASX: WTC) climbed 7%
- Xero Ltd (ASX: XRO) rose 4.5%.
Despite the rise, all three remain down significantly over the past 12 months.
Investors will be hoping that yesterday's climb marks a turning point for ASX technology shares.
Let's see what experts are saying.
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Why did ASX technology shares rise yesterday?
It seems yesterday's rise was a turning point for market sentiment.
After a period in which high-growth ASX technology shares were heavily sold down in the first half of 2026, investors may now be gradually rotating back into these sectors.
When sentiment turns, companies that have been heavily sold often recover quickly – particularly when their underlying fundamentals remain intact, and execution continues to be strong.
What could lead to a long term rebound?
A sustained rebound in the back half of 2026 for high-growth names such as WiseTech, Xero and Life360 would likely require a combination of improving macro conditions, stronger earnings delivery, and a continued shift in investor risk appetite rather than a single catalyst.
However perhaps the most important drivers would be interest rate expectations.
Growth stocks tend to be highly sensitive to discount rates because much of their valuation depends on future earnings.
If inflation remains contained and the RBA begins signalling rate cuts or a prolonged easing cycle, that typically improves sentiment toward long-duration assets like technology shares.
Even the expectation of lower rates can be enough to trigger multiple expansion after a period of compression.
What are experts saying?
All three of these ASX shares are generating positive outlooks from brokers.
14 out of 15 analysts via TradingView list Xero shares as a buy or strong buy.
Combined, these analysts have an average one year forecast of $131.35 on Xero shares, indicating 82% upside from current levels.
Meanwhile, Ord Minnett just reiterated their buy rating on WiseTech shares with a price target of $60.00.
From current levels, this indicates a 77% upside.
Finally, Life360 continues to generate positive outlooks from experts, including Bell Potter.
Christopher Watt from Bell Potter Securities has a buy rating on these ASX technology shares, saying active user growth is rebounding and that paying circle growth, which drives revenue, recently exceeded expectations.
