Should I invest $5,000 into WiseTech and Xero shares?

I take a closer look at whether these two ASX tech shares deserve a $5,000 investment today.

WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) are two of the ASX's most popular technology shares.

Both operate globally, both have large markets still to pursue, and both could look considerably bigger in another five or 10 years.

So, would I be comfortable putting $5,000 into these two ASX tech shares today?

Man using his device in an airport.

Image source: Getty Images

WiseTech Global shares

I think WiseTech could be worth a look after the sharp fall in its share price.

The company is best known for CargoWise, the software platform used by logistics companies to manage increasingly complicated global supply chains.

What I like about this business is how deeply its software can become embedded in a customer's operations. Moving freight around the world involves customs, warehousing, transport, compliance, and plenty of other moving parts. Once a logistics company is managing those processes through CargoWise, changing systems can be a major undertaking.

WiseTech also has plenty of room to keep expanding what customers do through the platform.

The e2open acquisition has significantly increased the size of the business and gives WiseTech more technology and customer relationships to work with. Successfully bringing everything together could create new opportunities across the global supply chain.

There is certainly uncertainty here. WiseTech still needs to integrate e2open effectively, while investors will want to see that its expected earnings growth actually arrives.

But I think the lower share price leaves plenty of upside if management delivers.

Xero shares

Xero offers a different type of technology opportunity.

Its accounting platform is used by millions of small businesses, accountants, and bookkeepers around the world.

The good news is I think the company still has a long way to grow. There are tens of millions of small businesses across markets such as the United States alone, while Xero had around 4.9 million subscribers globally at the end of FY26.

But it isn't just about subscriber numbers. Xero can generate more revenue from each business by offering more services around accounting, payroll, payments, and other financial tasks. Its acquisition of Melio should also strengthen its position in payments and help Xero play a bigger role in how small businesses manage their money.

I also think artificial intelligence (AI) could make the platform more valuable over time by automating more of the repetitive work involved in running a small business.

Xero still has to execute well, particularly in the highly competitive US market, but I think the size of the opportunity makes it worth backing.

Would I invest $5,000?

Yes, I would be comfortable putting $5,000 into WiseTech and Xero shares.

WiseTech offers the possibility of a strong recovery if earnings grow as expected and confidence returns, while Xero gives me exposure to a business that is still expanding through a huge global small business market.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Five happy friends on their phones.
Technology Shares

Electro Optic Systems vs Droneshield: Which ASX defence share wins?

Electro Optic Systems and Droneshield go head to head—see which ASX defence tech stock I favour right now.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Technology Shares

Morgans tips 3 ASX 200 companies to rise between 35% and 106%

These three technology companies are growing strongly.

Read more »

Model shipping containers in one hand, with the other hand doing a halt gesture.
Technology Shares

WiseTech shares need more than a rebound. 3 things it must prove first

WiseTech must earn its comeback story, not just claim one.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Technology Shares

WiseTech shares: 3 reasons to buy and 3 reasons to sell

Do you hold WiseTech shares in your portfolio?

Read more »

Couple using their digital tablet together.
Technology Shares

Could the WiseTech share price reach $50 in 2027?

I crunch the numbers to see what it would take for this fallen tech share to reach $50.

Read more »

Robot's hand typing on keyboard.
Technology Shares

Do these ASX technology shares have too much upside to ignore?

These shares are looking like a value play.

Read more »

Happy mum and dad with daughter smiling on couch after relocation to new home.
Technology Shares

Is Life360 one of the best ASX growth shares to buy?

I look at the forecasts to see whether the current share price could prove surprisingly cheap.

Read more »

A silhouette of a soldier flying a drone at sunset.
Technology Shares

Codan shares hit a new record high after the company predicts another strong year

Both of Codan's divisions are performing strongly.

Read more »