WiseTech Global Ltd (ASX: WTC) shares were climbing higher in early-morning trade on Wednesday before nosediving around 14% just after midday.
At the time of writing, the ASX tech shares are down around 10% for the day at $38.90 a piece.
The latest decline means the shares are now down 43% for the year-to-date and 66% lower than 12 months ago.
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What happened to WiseTech shares today?
Investors rushed to sell up their shares after the Australian Competition and Consumer Commission (ACCC) executed a search warrant on the company. The move is part of an investigation into potential breaches of competition law.
In a statement to the ASX, WiseTech said that an "ACCC search warrant was executed on the Company requiring the production of documents and electronic data in relation to the supply of global logistics services and software".
The company added that it intends to "fully cooperate with the investigation".
WiseTech said the action forms part of an ACCC investigation into alleged contraventions of the Competition and Consumer Act 2010. It didn't offer any further details about the allegations or which sections of the business the ACCC is investigating.
WiseTech shares have been smashed this year
Today's decline is just one of many steep sell-offs that the company has suffered from this year. The declines have mostly been driven by a tech sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year.
WiseTech shares also experienced a steep and sustained share price crash through to a five-year low of just $28.76 in late June. The dip followed media reports that the Australian Federal Police was investigating founder Richard White over alleged trafficking matters. The matters relate to a former cleaner at WiseTech.
The company responded at the time that the alleged investigation concerns Richard White in a personal capacity. It added that there is no suggestion in this media commentary of an investigation into WiseTech. But it didn't stop investors rushing for the exit.
ASIC and the AFP also searched WiseTech Global's headquarters in late October 2025. The search concerned alleged trading in WiseTech shares by founder Richard White and three employees. At the time, WiseTech said no charges had been laid and that there were no allegations against the company itself.
There is no indication that any of these events are related to today's search warrant.
Should investors buy in the dip or stay clear of WiseTech shares?
At the time of writing, the outlook for WiseTech shares is unchanged. Brokers and analysts are still very bullish on where we'll see the share price travel from here.
Market Index shows that the majority of brokers (three out of four) are very bullish on the ASX tech stock and hold a strong buy rating. The average $54.71 target price implies a potential 39% upside over the next 12 months, at the time of writing.
