After a brutal start to the week, heavyweight ASX tech stocks have staged a sharp rebound on Wednesday.

WiseTech Global Ltd (ASX: WTC) jumped 11% to $31.91, while Xero Ltd (ASX: XRO) climbed 7% to $69.65. The recovery offered some relief after heavy selling pressure across both stocks.

Despite the bounce, the damage over the past year remains severe for the ASX tech giants. WiseTech is still down around 70% over 12 months, while Xero has fallen roughly 64%. Over the same period, the S&P/ASX 200 Index (ASX: XJO) has gained about 3.7%.

So is the worst over, or just a pause in a broader downtrend?

WiseTech Global: Sentiment-driven sell-off

WiseTech’s recent volatility has been driven less by operational weakness and more by sentiment and headline risk.

The logistics software leader has been caught in a wave of investor concern surrounding governance issues and ongoing scrutiny linked to founder Richard White. That uncertainty has weighed heavily on sentiment, triggering sharp share price de-ratings.

Yet the latest rebound of the ASX tech stock suggests some investors believe the sell-off may have gone too far.

Fundamentally, WiseTech remains a dominant player in global logistics software through its CargoWise platform. The system is deeply embedded in the operations of freight forwarders, customs brokers, and logistics providers around the world.

That level of integration creates strong switching costs. Once customers adopt CargoWise into core workflows, replacing it becomes costly, disruptive, and operationally risky.

This structural moat is why many long-term investors still see underlying value in the business, even as short-term sentiment remains fragile.

Today’s 11% bounce may reflect bargain hunting after an extended period of forced selling rather than a fundamental shift in outlook. However, it does suggest that at least some market participants believe the risk-reward balance is starting to improve.

Xero: Caught in the growth stock unwind

Xero’s recovery has a different driver.

Unlike WiseTech, Xero’s challenges have been less about company-specific issues and more about sector-wide pressure on growth and technology stocks.

Over the past year, investors have aggressively de-rated software companies as interest rate expectations, valuation concerns, and risk appetite all shifted.

The ASX tech stock has not been immune. Despite continued revenue growth, customer base expansion, and strong recurring subscription income, Xero’s share price has been heavily compressed.

That recurring revenue model remains one of Xero’s key strengths. Subscription-based income provides visibility and stability, which is highly valued in software businesses over the long term.

However, in the current environment, the market has been more focused on valuation contraction than underlying growth.

The recent 7% rebound suggests that sentiment may be stabilising, at least in the short term, as investors reassess whether the sell-off has overshot fundamentals.

What happens next?

Both ASX tech stocks now sit at an interesting crossroads.

WiseTech is grappling with rebuilding investor confidence after governance-related uncertainty, while Xero is navigating a broader reassessment of software valuations.

In both cases, the recent rally may reflect a shift in sentiment rather than a full reversal of trend.

The post ASX tech giants bounce back from heavy losses appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares have continued to slide over the past month.

During this time, the counter-drone technology company’s shares have lost almost 20% of their value.

But that doesn’t reflect a lack of progress from the company. In fact, there have been a number of announcements over the period.

And one that could have flown under the radar from this week relates to its European operations.

Let’s take a closer look at what the company has announced.

What did DroneShield announce?

On Tuesday, DroneShield announced the launch of a strategic supply chain campaign in Poland, which aims to strengthen local industry engagement and support the delivery of next-generation sovereign and allied counter-drone capability across Europe.

The company revealed that the campaign will see DroneShield expand engagement with Polish manufacturing and technology partners to drive a more resilient and scalable supply chain.

This is aligned with growing European demand for counter-uncrewed aircraft systems (CUAS).

DroneShield advised that the initiative is intended to support European military, public safety, and critical infrastructure customers that are seeking proven counter-drone solutions with strong local industrial participation.

The campaign is being timed to coincide with the release of DroneShield’s accompanying European supply chain expansion document. This document will outline its approach to working with Polish partners across areas including advanced manufacturing, subsystem supply, electronics, testing, sustainment, and capability integration.

‘An important strategic market’

Commenting on the plans, DroneShield’s Europe-based technical and supply chain manager, Ciaran Mannion, said:

Poland is an important strategic market for DroneShield and a natural fit for deeper industrial collaboration. This campaign reflects our commitment to working with capable local partners to support European requirements with proven counter-drone technology, responsive delivery, and sovereign capability.

As demand for counter-drone capability continues to grow, customers are increasingly looking for trusted suppliers who can combine world-class technology with strong local industrial support. Our Polish supply chain campaign is designed to help meet that need.

The company notes that the Polish supply chain campaign forms part of its broader international growth strategy. It reflects DroneShield’s focus on building durable partnerships in priority markets where national security, defence modernisation, and critical infrastructure protection remain key policy and procurement priorities.

Despite recent share price weakness, DroneShield’s shares are still beating the market over the past 12 months. During this time, they have generated a 41% return for investors. So, it isn’t all doom and gloom.

The post Own DroneShield shares? Here’s some news you might have missed appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares ended in the red again at the close of the ASX on Tuesday afternoon.

The shares ended around 1% lower for the day, at $112.04 a piece and they’re now around 4% lower over the past week. It looks like investor sentiment has started softening again.

The shares began rebounding through the first three weeks of June, and are still around 19% higher than an all-time low of just $92.24 earlier in the month.

But CSL shares are still 35% lower year to date and 54% lower than this time last year.

The question now is, if you own the ASX healthcare shares, what should you do with them?

Is it time to buy more in the dip? Hold tight until we know what will happen next? Or sell up before the shares drop to a new low?

Here’s what the experts think.

Are CSL shares a buy, sell or hold?

Analysts are divided on the outlook for CSL shares, although the majority agree there should be some upside ahead.

Market Index data shows most brokers (five out of seven) have a hold rating on CSL shares. However, the $137.04 target price implies a potential 22% upside at the time of writing.

TradingView data also shows that, of 18 analysts, 10 have a hold rating and another eight have a buy or strong buy rating on the stock. 

The average $138.48 target price implies a potential 25% upside at the time of writing. However, some analysts tip the ASX healthcare shares to fall around 8% to $103.49, while others forecast CSL to jump around 76% higher to $197.66, at the time of writing.

UBS recently renewed its buy rating on CSL shares with a 12-month price target of $158. The broker is feeling more positive about the company’s outlook, and believes that this year could mark the low point for CSL’s earnings.

But the team at Peak Asset Management is more bearish and is one of the brokers with a sell rating on the ASX stock. 

The broker said that the biotech giant has materially downgraded its FY26 outlook while announcing about $5 billion of additional non-cash pre-tax impairments across fiscal years 2026 and 2027. It also noted that the CSL Vifor acquisition has underperformed amid government healthcare cost pressures and a higher-interest-rate environment.

Meanwhile, Ord Minnett recently confirmed its hold rating and $117 target price on CSL shares. The broker also said it believes the market is underestimating the challenges its Vifor business is facing and expects earnings to be below consensus estimates.

My view of CSL shares

I don’t think things look too good for CSL shares right now, and short-term growth appears to be limited.

Over the longer term, I think there is still potential. CSL’s growth initiatives seem to be working, and it is operating in a dominant position in a high-growth market.

I think it’s possible that if CSL can turn around its financials, investor confidence will follow. But until then, I’m holding tight. 

The post Down 54%: What should I do with my CSL shares now? 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.