WiseTech shares: 3 reasons to buy and 3 reasons to sell

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.

WiseTech Global Ltd (ASX: WTC) shares have jumped higher on Tuesday.

At the time of writing, ASX tech shares are up around 5% and trading at $33.31 apiece.

The increase is a welcome reprieve for investors after the stock fell 23% over the past month, off the back of its FY26 results. The company posted earnings that were in line with analyst expectations, but its EBITDA figures came in short of market forecasts. Investors weren’t thrilled.

Despite today’s increase, WiseTech shares are still down around 51% for the year-to-date. They’re also 66% lower than just 12 months ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is up slightly, around 0.2% for the year-to-date, but around 1% lower than 12 months ago.

It’s not all bad news for WiseTech shares. Here are three reasons to add the tech stock to your portfolio this year, and three reasons to sell up.

3 reasons to buy WiseTech shares

1. WiseTech has a strong competitive edge

WiseTech’s CargoWise platform is deeply embedded in the global logistics industry. The platform is difficult to replace, and this gives the company both security and a strong competitive advantage amongst its peers. If global trade volumes keep expanding and supply chains become more digital, WiseTech could become a dominant software provider in the logistics industry.

2. The business is performing well

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts’ expectations. Last month, the company reported a significant 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance figures. It may have come short of market expectations but this level of EBITDA increase inside a 12-month period shows that the business is performing well.

3. Brokers tip a strong upside ahead

According to Market Index data, all brokers have a strong buy rating on WiseTech shares. The $58.88 average target price implies a potential upside of around 77%, at the time of writing.

3 reasons to sell WiseTech shares

1. AI anxiety

WiseTech shares have been caught up in a tech-sector-wide sell-off over the past 18 months as investors increasingly sold their tech shares amid growing fears that companies’ core services could be replaced by AI. The AI anxiety has been driven further by news of WiseTech’s AI-driven restructure and job cut plan. 

2. Governance concerns and regulatory issues

It’s no secret that the company’s shares have also come under pressure this year following a series of updates and media reports around governance concerns and regulatory issues. These included investigations into founder Richard White by the Australian Federal Police and recent news that the Australian Competition and Consumer Commission (ACCC) executed a search warrant on the company. ASIC and the AFP also searched WiseTech Global’s headquarters in late October 2025.

3. WiseTech’s dividend yield is low

If passive income is your goal, WiseTech isn’t the stock for you. The company is still in the transitional growth phase, and while it does pay its shareholders two full-franked dividends per year, they come with a very low dividend yield. For FY26, the company paid shareholders 22 cents per share, which equates to a dividend yield of around 0.7% at the time of writing, which is well below the market average.

The post WiseTech shares: 3 reasons to buy and 3 reasons to sell appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.