Sectors: Software
Hi guys, just a quick one.
What’s your thoughts on the I-shares expanded tech-software IGV?
I’m long on a leveraged position and have clearly missed something as it’s hitting multi-year lows. I understand it has lots of holdings, but it would seem like most are getting a bounce, so which ones are pulling the price down? It appears to be trading at nav, but over 5% just in the last few days; 8.5% if we take the strong open from mid-week. The next obvious level is another ~8% lower.
Thanks, Simon
US tech stocks, once the market darlings on the index, have been pulled back to the proverbial pack over recent months as the market focused on the risks, as opposed to the benefits of huge spending on AI. Big Tech has lagged in recent months, weighed down by concerns around rising AI-related spending and a broader rotation into cyclical sectors benefiting from an improving economic backdrop.
Dear James and Team
Hi MM,
You have WTC in your growth portfolio and are keen on the stock. My question relates to the ASIC investigation which has gone quiet based on the lack of WTC announcements. However, when ASIC do make an announcement, this could be a very binary outcome for the stock. How would you play WTC pending the outcome of the investigation?
On EDV, they seem to be on a downhill slide even though sales in the first 7 weeks of 2H FY26 show improvement. Is this slide simply a reaction to inflation/interest rate concerns?
Thanks,
Peter
Given the disruption to global trade & shipping what do you think the impact will be on WTC’s future profitability?
Hi Guys,
Hi,
Its most definitely not for the faint-hearted but this software based ETF has reached our technical target identified a few weeks ago, we wouldn’t be surprised to at least see a ~15% bounce following the overnight panic selling.
In line with our earlier discussion around US Tech we are looking for a low risk inflection point in the “AI Disruption Trade” in the coming week (s). However, with the likes of WiseTech (WTC), Life360 (360) and SiteMinder (SDR) set to report this week the optimum vehicle to trade such a view is still to be determined – but watch this space, a position feels likely in the not-too-distant future.
