WiseTech Global Ltd (ASX: WTC) shares have tumbled into the red again in Thursday morning trade.
At the time of writing, the ASX tech shares are down around 3% and changing hands at $38.78 a piece.
Today's dip follows a sharp rally in the first few days of August. WiseTech shares jumped 10% between Monday morning and the close of the ASX on Wednesday afternoon.
WiseTech shares are also up around 10% over the past month, and 33% higher than a low in late July. But the gains aren't enough to recover the huge amount of losses shed over the past 12 months.
For the year to date, WiseTech shares are down around 43%, and they're a huge 66% lower than a year ago.
So the question is, what's going on with the WiseTech share price? And what can we expect next?
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Why did WiseTech shares spike higher through the first few days of August?
A better-than-expected inflation report last week has reduced the risk of the Reserve Bank raising interest rates again in August.
This, along with the cooling of conflict in the Middle East and easing oil supply concerns, has provided substantial tailwinds for the market last week.
And ASX 200 tech shares reaped the benefits of improved sentiment. The tech sector was the best-performing index last week. And WiseTech shares were the strongest-performing among the bunch. The good news spilled through to the first few days of August, too.
And why are the shares cooling again today?
There isn't any price-sensitive news out of the company to explain today's share price tumble. It's most likely investors taking their gains off the table after a strong rally over the past week.
Another catalyst is ahead
WiseTech is due to announce its FY26 results on the 26th of August.
The company reaffirmed its FY26 guidance earlier this year, expecting full-year revenue of US$1.39 billion to US$1.44 billion (representing a 79% to 85% increase) and EBITDA in the range of US$550 million to US$585 million, up 44% to 53% from FY25.
If WiseTech manages to reach or exceed its upgraded guidance, investors may move their attention away from governance concerns and back towards the company's growth potential. And this could cause a huge shift in the WiseTech share price.
What do brokers tip for WiseTech shares over the next 12 months?
Analysts continue to remain bullish about the outlook for the ASX tech stock over the next 12 months.
TradingView data shows that the majority (11 out of 13) have a buy/strong buy rating on the shares. The average $60.68 target price implies a potential 57% upside over the next 12 months, at the time of writing. Meanwhile, some think the shares have the potential to rocket 195% higher to $114.25 by this time next year.
The team at Macquarie Group Ltd (ASX: MQG) have a buy rating and $47.10 target price on the shares. This is on the lower side, but it's still comfortably above the current trading price.
Macquarie analysts said in a recent note to clients that they think Wisetech can "surprise to the upside" with its guidance for FY27 when it reports its results. But the broker added that it is still concerned about persistent tariffs and regulatory issues over the long term.
Bell Potter also has a buy rating on the ASX 200 tech share, and a 12-month target price of $71.75. The broker said there has been a tech rally of sorts on the ASX over the past couple of months, but that WiseTech has missed out, likely due to a number of headwinds that have put investors off. The broker said, however, these negatives will start to dissipate over the coming months, starting with the recent appointment of Raelene Murphy as Chair.
