Tech Stocks Surge | WiseTech at all-time high

11 June 2019

Global markets started the week higher after the United States dropped plans to impose tariffs on Mexican goods.

​​The technology sector led gains, as the market digested a couple of large M&A announcements, with United Technologies agreeing to merger with defence contractor Raytheon to create a $121bn company, while is set to buy big data firm Tableau Software for $15.3bn.

Stock in Focus: Wisetech Global (WTC:ASX)

​​​​​​​​​​​​​​​​​Shares in logistics software as a service company WiseTech Global (WTC) soared ​to ​new all-time highs after a well-received investor conference. ​Several Aussie tech darling stocks such as Wistech are trading at very rich valuations post an amazing share price run in recent times.​

Surprisingly, WTC only reaffirmed its previous guidance​ (expecting revenue growth of 47% – 53% for 2019)​​,​ suggesting the market may have anticipated a downgrade. WTC also released solid customer acquisition metrics and the importance and benefits of a integrated platform has over specialised fragmented software in the logistics industry​.

To improve and expand WTC​'s​ product offer​ing​ it must continue to invest into its software as well as acquiring business to improve its products integration. To continue to do this​,​ WTC has successfully raised $335.9m from both institutional and retail investors​. WTC is a quality company​, however we are ​cautious around its valuation with the market pricing in a tremendous amount of growth​.​

We currently have a ​HOLD recommendation on ​WTC.
Members should look out for a full update on ​WTC​ to be released in tomorrow's weekly report.

Australia & New Zealand Market Movers

​​​​​​​​​​​​​​​​​​​​​​​​The Australian share market was closed on Monday for Queen's Birthday holiday (ASX 200 index 0.00%). 

The New Zealand market was a touch lower on Monday (NZX 50 index -0.20%) in subdued trading, with an Australian holiday sapping activity on the local market. Fisher & Paykel Healthcare led the market lower, as a strong kiwi dollar ​hit sentiment given its significant export earnings. ​At the same time, the decision by the US not to impose tariffs in Mexico is a positive at the margins given Fisher & Paykel has a production facility based in Mexico.

3 Things Markets Will be Watching this Week

  1. ​​​​​Trade War headlines are likely to ​remain drivers of investor sentiment.
  2. Closely watched US inflation  data will be released on Thursday​.
  3. The latest monthly Chinese economic updates are published on Monday.

Have a Great Day,


Global markets started the week higher after the United States dropped plans to impose tariffs on Mexican goods.

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