These 2 ASX Tech Stocks Might Be the Bargains Hiding in the Bloodbath

Volatility can Create Opportunity

It’s no secret that investing in technology right now feels risky. After today’s US$3 trillion wipeout and a 2.2% drop in the Nasdaq, fear-driven and emotional selling is starting to take hold across the market. Volatility like this tends to shake even confident investors, but it also creates opportunity.

Moments like these often present chances to buy quality companies at better prices, particularly those with strong balance sheets, rising free cash flow, and solid growth runways. While sentiment may be negative in the short term, these are the periods when disciplined investors might be able to find value hiding in plain sight.

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After a 50% Collapse, WiseTech’s Fundamentals Tell a Different Story

WiseTech Global (ASX: WTC) has been caught squarely in the market’s firing line, and to some extent, the criticism is justified. Questions around internal governance have shaken investor confidence, sending the stock from its peak of A$141 down to around A$61. The selloff has been steep, but it opens an interesting question for long-term investors: does this correction now represent an attractive entry point?

WiseTech Delivers Another Strong Quarter with Expanding Margins

Looking at the latest FY25 investor presentation, WiseTech Global delivered another strong performance. Total revenue reached A$778M, up 13% year-on-year, with the CargoWise platform contributing A$682M, growing 15% and maintaining an impressive 99% recurring revenue base.

What stands out is how efficiently these earnings are being converted into cash. Free cash flow rose 31% to A$287M, highlighting stronger operating leverage and disciplined capital allocation that continues to strengthen the balance sheet while funding new growth initiatives. Gross profit climbed 17% to A$681M, sustaining an exceptional 87% gross margin, which reinforces the scalability and pricing power of WTC’s software model.

Operating expenses appear to be stabilising, though general and administrative (G&A) costs rose modestly, largely due to M&A expenses linked to the E2open acquisition. Research and development (R&D) remained a clear priority, reaching A$263M, with 55% capitalised as investments into future product development.

The increase mainly reflects higher headcount tied to new CargoWise modules and platform innovation. Importantly, R&D represented 34% of total revenue, underscoring that WTC is still very much in a growth phase.

A quick valuation snapshot

If we look at WiseTech Global’s management guidance for FY26, the company is forecasting revenue of US$1.39–1.44B, representing growth of 79–85%, and EBITDA of US$550–585M. On the surface, that looks ambitious, but it also highlights how the E2open acquisition is reshaping scale expectations.

At the current FY25 EBITDA multiple of roughly 36x, WiseTech Global (ASX: WTC) screens as slightly overvalued based on 26% EBITDA growth (excluding M&A costs). But when factoring in consensus and management forecasts for 65% growth in FY26, the PEG-style ratio drops to around 0.3. Ratios below 1.0 typically indicate attractive value, implying that if WiseTech can execute on its guidance and integrate E2open effectively, the market may be underestimating the company’s growth trajectory.

What to be cautious of with WTC

Still, WiseTech’s 50% share price collapse is not without reason. Governance issues have shaken confidence, and while analysts remain constructive on the long-term fundamentals, the path from A$67 back to A$178 will likely be slow and volatile. The prudent stance for most investors is to wait for at least two quarters of consistent performance and clarity around regulatory investigations before re-entering.

Life360 May Be on the Verge of a Rerating as Growth Accelerates

Life360 (ASX: 360) has had an extraordinary run this year, climbing to A$55 before pulling back to around A$36. Even with strong reported earnings, broader weakness across the tech sector has triggered a period of healthy consolidation. Yet, with solid fundamentals and a growing monetisation base, Life360 remains one of the more interesting long-term growth stories on the ASX for investors who focus on quality at a reasonable price.

Life360 Delivers Record Quarter as Advertising Momentum Builds

In its latest quarter, Life360 delivered one of its strongest results to date, posting record incremental EBITDA alongside expanding revenue from advertising and new product streams. The company also announced the acquisition of Nativo, a move designed to accelerate its ambitions in digital advertising and strengthen long-term earnings visibility. Management expects multiple near-term catalysts to emerge from this strategy, helping to offset short-term weakness tied to the company’s US listing.

From a revenue standpoint, Life360 delivered another strong quarter, generating A$124M, up 34% year-on-year. Subscription revenue accounted for A$96M, reflecting steady user monetisation, while advertising revenue surged 82% to A$16.9M, underscoring the growing strength of its ad platform. Notably, monthly active users (MAUs) in the US rose 19%, driven by higher conversion rates from free to paid users. This mix of subscription resilience and accelerating advertising growth highlights Life360’s ability to scale multiple revenue streams in tandem.

What growth focused and conservative investors should note

When comparing Life360’s valuation to its growth outlook, analysts expect a potential rerating toward A$66, implying roughly a 44% upside from the recent close of A$36. On the surface, the stock looks expensive, trading at an EV/EBITDA multiple of around 179x as of the last quarter. However, with EBITDA forecast to more than triple next year, the PEG style ratio of roughly 0.31 suggests that, relative to its growth potential, Life360 could actually be undervalued.

For growth-oriented investors who believe in the company’s execution story, the current level may represent an attractive entry point into a long-term compounder. That said, more conservative investors may prefer to wait for a few quarters of consistent growth and clearer visibility on earnings momentum before taking a position.