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Are ASX tech shares becoming a big opportunity?

Plenty of ASX tech shares could be getting into the buy zone right now. They keep falling, I think they’re worth a look.

What’s going on?

There are many ASX growth shares that have been slipping in recent times.

For example over the last three months, the Altium Limited (ASX: ALU) share price has fallen 28%, the Pushpay Holdings Ltd (ASX: PPH) share price has declined 32% and the Appen Ltd (ASX: APX) share price has dropped 37%.

Some of the declines have been more immediate than that, the SEEK Limited (ASX: SEK) share price is down 7% since 4 January 2021 and the REA Group Limited (ASX: REA) share price has dropped 7% over the same time period.

Why have tech shares been dropping? The straightforward answer is “who knows?”. Everyone sells (and buys) for different reasons – you’d have to ask the people who have been selling. Or, you’d have to ask people why they aren’t willing to buy shares for as much as a couple of weeks ago.

There have been plenty of events in the last few weeks.

The Democrats won control of the senate, which may have spooked some investors who are afraid of the ‘radical left’ having more control. On the other hand, that makes it more likely that the $2,000 stimulus cheques will go out to the population, which could be just what is needed right now.

However, it’s a generally accepted view that the Democrats may be a bit tougher on the large US tech shares, which could hurt their collective profit and that may be hurting investor sentiment. ASX tech shares do tend to follow US tech shares in the short term, even if those US issues have nothing to do with those ASX tech shares. The market is a funny beast.

COVID-19 and the associated impacts continue to hamper the economic recovery, particularly in the US and Europe. If the pandemic goes on longer than expected, or if there are problems with the vaccine’s distribution, take-up or effectiveness then that could hurt investor confidence a bit more.

What to make of all this?

The above mentioned issues, and other issues, may or may not be why share prices are moving now. Share prices are always moving in response to one thing or another on a day to day basis. But most news disappears into history very quickly.

Most of the time share markets keep marching higher, so it’s best to ignore the ‘noise’ of what’s going on.

I like to just focus on the buying part of investing: Is the opportunity I’m being presented with a good time to buy shares of a business? If you started waiting in March for the world to be rid of COVID-19 before investing then you would have missed out on the enormous investment gains since then.

That’s not a call to action to invest every dollar you have, but I believe you should always bet on the determination and ingenuity of the people in this world to make things better over time.

In my opinion, many of the tech shares that are getting sold are the businesses that have the best long-term growth potential. Pushpay, Microsoft and Alphabet are lower but they still have very compelling futures. I’d be happy to buy all of them day.

One of the other ASX growth shares to consider could be Redbubble Ltd (ASX: RBL).

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At the time of publishing, Jaz owns shares of Altium.
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