S&P/ASX 200 Index (ASX: XJO) tech stocks, including REA Group Ltd (ASX: REA) and TechnologyOne Ltd (ASX: TNE), have taken a beating this past year.

Indeed, while the ASX 200 has managed to push 2.8% higher over the last 12 months, the S&P/ASX All Technology Index (ASX: XTX) has plunged 27.5% over this same period.

(All price data as at late afternoon trade on Wednesday, 24 June.)

As for REA Group, at $131.55 each, shares in the online property listings company are down a sharp 43.9% in a year. REA shares also trade on a 2% fully-franked trailing dividend yield.

TechnologyOne shares have fared a little better, but not much.

At $28.05 apiece, shares in the ASX 200 software-as-a-service (SaaS) provider have dropped 30.5% in 12 months. TechnologyOne stock also trades on a 1.3% partly-franked trailing dividend yield.

While each company has faced its own issues, they’ve both gotten caught up in the so-called SaaSpocalypse. This has seen most SaaS stocks suffering steep declines amid investor concerns that artificial intelligence could replace a lot of the services these companies offer.

Then there’s rising interest rates, with the RBA hiking rates three times this year and the US Fed switching from an easing outlook to potential tightening as well.

That’s a particularly strong headwind for many tech stocks, including TechnologyOne and REA, as these are often priced with higher future earnings in mind. And as interest rates go up, so too does the present cost of investing in those future earnings.

But following the past year’s sell-off, a number of prominent fund managers are seeing value emerging in the ASX tech space.

REA and TechnologyOne shares tipped to thrive in an AI world

Solaris portfolio manager Damien Keune expects that REA shares won’t be taken out by the rise of artificial intelligence.

“The AI revolution might change how buyers search for properties, but the houses still need to be listed somewhere,” Keune said, quoted by the Australian Financial Review.

According to Keune:

REA has lived through many property cycles, and they’ve always managed to report positive earnings growth because they’re so embedded in what is an emotionally charged process of buying and selling a house.

And Ten Cap portfolio manager Jun Bei Liu said she is bullish on TechnologyOne shares.

Liu noted:

ASX tech is becoming interesting again. The ones we like are those that still have a long runway for revenue growth, recurring income, and operating leverage, even in an AI world.

The post Why these top fundies are buying REA and TechnologyOne shares appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares I’d buy for powerful growth
• 3 buy-rated ASX tech shares with bright futures
• Down 16%: What on earth is going on with TechnologyOne shares?
• These ASX 200 shares are down 40% to 65% and could be bargain buys
• REA shares fall 43% to a three-year low. Is it time to buy?

Motley Fool contributor Bernd Struben 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 Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The CSL Ltd (ASX: CSL) share price has experienced significant volatility over the last few years following the COVID-19 pandemic. The last year has been challenging for shareholders, as the chart below shows.

The ASX biotech share has a diversified earnings business, yet many of them are facing a challenging operating environment. CSL operates in areas like immunoglobulin products, albumin, HEMGENIX, iron deficiency treatment, plasma and recombinant therapies, and vaccines.

Let’s look at the performance of the CSL share price and what would have happened to $10,000.

A heavy decline for the ASX biotech share

In the past year, the CSL share price has more than halved (it has dropped 51.6%), and it’s down 57% from August 2025.

With such a painful drop, a shareholder who had $10,000 a year ago now only has an investment that’s worth just over $4,800. A little bit of dividend income may have helped offset a small part of that decline, but investors are certainly facing big losses.

Its latest update demonstrated the problems it’s experiencing.

The company now expects FY26 revenue to be around $15.2 billion, while underlying net profit (NPATA) – excluding restructuring costs and impairments – could be around $3.1 billion. Both of those guided figures are both on a constant currency basis.

There were a few different negatives in that update.

In US immunoglobulin, while demand is growing in the mid-to-high-single-digits, consistent with CSL’s expectations, reported revenue will reflect CSL’s normalisation of channel inventory, resulting in approximately $300 million of revenue being impacted.

Additionally, with its albumin in China, while CSL’s share has expanded and volumes have stabilised, market value has declined, resulting in an expected venue impact of approximately $200 million.

CSL also said that impacts from the Middle East conflict, revised HEMGENIX growth and competition in iron collectively resulted in an expected revenue impact of approximately $150 million.  

But, on the positive side of things, CSL continues to expect revenue growth in the second half of FY26 for CSL Behring, supported by “underlying demand, ongoing commercial execution and benefits from operational and transformation initiatives”.

Finally, the financial performance of the vaccine business (Seqirus) in FY26 is expected to be “moderately stronger than previously anticipated”.

It said it expects to recognise approximately $5 billion of impairments across FY26 and FY27.

Is the CSL share price a buy?

Analysts are still feeling somewhat cautious on the business, despite the much lower valuation.

According to CMC Invest, there have been 11 ratings on the business in the last three months, with three buy ratings and eight hold ratings.

The average price target on the CSL share price is $135.28. That implies a possible rise of 16% in the next year.

Despite such a large decline, little recovery is expected, so there could be better opportunities out there.

The post $10,000 invested in CSL shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

• Why I’d buy CSL and Zip shares before they recover
• New to ASX shares? Avoid these 3 beginner mistakes
• Down 54%: What should I do with my CSL shares now?
• Is this broker right about CSL shares?
• 3 cheap ASX shares that could be hiding in plain sight

Motley Fool contributor Tristan Harrison 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.

A new month is on the horizon, so what better time to consider making some investments.

If exchange traded funds (ETFs) are on your shopping list and you have $5,000 to invest, then it could be worth checking out these three ASX ETFs listed below. Here’s what they offer:

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The first ASX ETF to look at is the Betashares S&P/ASX Australian Technology ETF.

This fund gives investors exposure to Australia’s technology sector in one trade.

That makes it quite different from many local share market funds, which are often dominated by banks, miners, supermarkets, and large industrial companies.

The Betashares S&P/ASX Australian Technology ETF opens the door to businesses that are helping digitise the economy. That can include software companies, online marketplaces, data-driven businesses, and technology-enabled platforms.

Australia has produced several impressive technology companies, and the market could produce more as businesses continue shifting processes, payments, data, and customer interactions online.

For investors who want local exposure but do not want another fund shaped mainly by traditional blue chips, it could offer something different.

VanEck Global Defence ETF (ASX: DFND)

Another ASX ETF that could be worth considering is the VanEck Global Defence ETF.

This fund gives investors exposure to listed global companies involved in the defence industry.

The investment case here is not built around a short-term market fad. Defence spending is being shaped by geopolitical tension, military modernisation, cybersecurity needs, supply chain security, and the push by governments to strengthen national capability.

That can create long-term demand for companies involved in aerospace, defence systems, communications, surveillance, naval technology, and related equipment.

This is a more specialised ETF, so it should be expected to move differently from a broad market fund.

As a result, it may appeal to investors who believe defence will remain a strategic priority for governments over the next decade. However, it also comes with sector concentration risk, as performance will be tied closely to spending cycles, contracts, policy decisions, and global security conditions.

VanEck MSCI International Quality ETF (ASX: QUAL)

A third ASX ETF to dig deeper into is the VanEck MSCI International Quality ETF.

This fund is designed for investors who want global exposure but with a quality filter.

It focuses on international companies with stronger financial characteristics. That can mean businesses with solid profitability, healthier balance sheets, and more dependable earnings profiles.

That quality screen can be useful when markets are uncertain. Companies with strong financial foundations often have more flexibility. They can keep investing, protect margins, and manage harder conditions without being forced into short-term decisions.

All in all, it could be a strong option for investors wanting international diversification with a quality focus.

The post Where to invest $5,000 in ASX ETFs in July appeared first on The Motley Fool Australia.

More reading

• 3 amazing tech ETFs to buy and hold forever
• 10 amazing ASX ETFs for the next decade
• 5 high-quality ASX ETFs to buy with $5,000
• If the ASX 200 rallies in the back half of the year these sectors could be portfolio winners
• 3 ASX ETFs for investors who want global winners

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 no position in any of the stocks mentioned. 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.