ASX tech shares sink amid Megaport (ASX: MP1) crash and NASDAQ fall

ASX technology shares had a shocker today.
The post ASX tech shares sink amid Megaport (ASX: MP1) crash and NASDAQ fall appeared first on The Motley Fool Australia. –

Key points

ASX 200 tech shares had a tough day on Wednesday
Technology shares followed a similar pattern as on US markets overnight
Megaport had a particularly grim day, falling 16%.

ASX technology shares finished in the red today after a tech selloff on the NASDAQ overnight and with Aussie tech company Megaport falling dramatically.

The S&P/ASX All Technology Index (ASX: XTX) fell 1.71% today while the S&P/ASX 200 Info Tech (ASX: XIJ) finished 2.56% lower. The Megaport Ltd (ASX: MP1) share price had a particularly disastrous day, shedding 16.15%.

Let’s take a look at what weighed on technology shares today.

Tech shares fall

ASX tech shares fell after the NASDAQ-100 Technology Sector Index (NASDAQ) dropped 3.39% in the US overnight. Australian technology shares often follow in the footsteps of their US peers, as Motley Fool Australia has noted previously.

Megaport led the pack in share fallers today. The company’s shares fell to their lowest level in 8 months, closing at $15.32. This is the worst result for the company’s shares since 7 June, when the company’s shares finished at $15.24.

As my Foolish colleague James reported earlier, investors appeared to expect better growth in the company’s second-quarter update.

Despite the company reporting an 8% gain in second-quarter revenue to $26.6 million, investors sold down the share.

The Afterpay Ltd (ASX: APT) share price also fell 2.81% while Xero Limited (ASX: XRO) sunk 2.36%.

Meanwhile, Altium Limited (ASX: ALU) dropped 1.95% and TechnologyOne (ASX: TNE) fell 1.52%.

However, Appen Ltd (ASX: APX) bucked the trend today, gaining 3.87% to finish at $10.47.

Sadly, Afterpay’s drop today coincided with its last day trading on the market. The company will be taken over by Block Inc (NYSE: SQ) and replaced on the ASX with SQ2 shares.

ASX technology share recap

The All Technology Index has fallen 5.78% in the past year, while the Info Tech index has dropped 14.69%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 8.75% in the past year.

The post ASX tech shares sink amid Megaport (ASX: MP1) crash and NASDAQ fall appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Why Allkem, Megaport, Redbubble, and Temple & Webster’s shares are falling

Are the worst-performing ASX 200 shares turnaround opportunities?

ASX 200 (ASX:XJO) midday update: BHP’s update, Megaport sinks, HUB24 impresses

Nick Molnar and Anthony Eisen will say goodbye to their Afterpay (ASX:APT) shares tomorrow. What will they be left with?

Why the Megaport (ASX:MP1) share price is crashing 12% today

The author has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Altium, Appen Ltd, and MEGAPORT FPO. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!