In afternoon trade on Monday, WiseTech Global Ltd (ASX: WTC) shares were swapping hands for $40.63 apiece.
That sees shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company down a painful 64.9% over the past 12 months, which compares quite unfavourably with the 4.3% one-year gains posted by the ASX 200.
Some of that selling pressure has been driven by investor concerns over the company's governance, with founder and executive chairman Richard White generating negative media headlines over allegations of inappropriate behaviour.
WiseTech shares also came under pressure amid broader investor concerns that the rapid rise of artificial intelligence could potentially replace a lot of the services Software as a Service (SaaS) companies provide.
You may have heard this called the 'SaaSpocalypse'.
But with shares having more than halved over the last year, is the ASX 200 tech stock now on sale?
Image source: Getty Images
Are WiseTech shares a good buy today?
Bell Potter Securities' Christopher Watt recently ran his slide rule over the tech stock (courtesy of The Bull).
"WiseTech develops and provides software solutions to the global logistics industry," he said.
Watt noted:
Its core logistics software business is performing in line with guidance. The recent appointment of an independent chair is a credible step towards addressing governance concerns.
But with WiseTech shares having jumped almost 36% since market close on 23 June, Watt issued a hold recommendation on the stock for now. He concluded:
In July, WTC announced it and major customer DSV were committed under an existing contract until September 2028 following speculation DSV was considering in-house alternative arrangements. The shares have bounced off a 12-month low of $28.76 on June 23 to trade at $39.57 on August 6.
What's the latest from the ASX 200 tech stock?
On 22 July, WiseTech announced that it had entered into an agreement to acquire United States-based FRDM.ai.
FRDM.ai develops AI-powered supply chain risk and compliance intelligence technology. The transaction was reported to be for an upfront consideration of $10 million in cash and WiseTech shares. The maximum payable under the all-cash earn-outs is $14.3 million
Commenting on the acquisition on the day, WiseTech CEO Zubin Appoo said:
As WiseTech's chief innovation officer, Richard White has worked closely with FRDM.ai's founder, Justin Dillon, for more than nine months to bring FRDM.ai into the WiseTech Group, accelerating our VerifyWise plans. Our shared vision is to help organizations proactively identify and mitigate supply chain regulatory issues more easily.
