ASX tech stocks have had a rough week.

To illustrate, on Wednesday, Xero Ltd (ASX: XRO) fell 5.2% to $98.90.

WiseTech Global Ltd (ASX: WTC) dropped 5.16% to $37.65.

These results occurred as the ASX 200 had its worst session in three months.

The question worth asking for investors is whether the selling has finally gone too far.

Why ASX tech stocks fell so far

The drop is not linked to any news out of the companies themselves.

Bond yields have risen sharply, with the US 10-year Treasury reaching 4.79% and Australia’s long bond returning to levels last seen in 2011.

Technology businesses earn most of their profit years into the future, so a higher discount rate hits them harder than anything else on the market.

This has unfortunately been compounded by a 60% chance of a Reserve Bank rate rise this month.

Here are a few tech stocks hit particularly hard.

1. WiseTech Global

WiseTech is the most interesting name on this list.

The company’s shares have fallen from a 52-week high of $99.70 to $37.65, which is a decline of more than 60%.

In its latest results, FY26 revenue rose 79% to US$1,395.9 million, helped enormously by the e2open acquisition.

Underlying EBITDA climbed 56% to US$644.5 million and free cash flow increased 43% to US$410.7 million.

The problem lies in what the future holds for the company.

FY27 guidance is for revenue growth of just 6% to 10%, and an active ACCC investigation is adding doubts in the back of investors’ minds.

At 50 times earnings, WiseTech is trading at a significant multiple for a company only projected to grow revenue in the single digits.

2. Xero

Xero is the highest quality operator of the three and now is within 70 cents of its 52-week low.

FY26 operating revenue rose 31% to $2.75 billion and annualised monthly recurring revenue jumped 37% to $3.27 billion.

The company added 506,000 customers to reach 4.92 million globally, while average revenue per customer rose 23% to $55.44.

Adjusted EBITDA grew 18% to $757.4 million, though net profit fell 27% to $167.4 million on Melio acquisition costs.

Chief executive Sukhinder Singh Cassidy noted the strength of the platform:

We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing the Melio integration.

FY27 guidance points to revenue of $3.62 billion to $3.73 billion, which is another year of roughly 30% growth.

3. Life360

Life360 Inc (ASX: 360) is the highest risk of the three.

Shares have fallen nearly 40% year-to-date.

Despite this, second-quarter revenue rose 38% to US$159 million and adjusted EBITDA jumped 53% to US$31.1 million.

However, look a little deeper and the picture unravels.

Net income fell 17.8% to US$5.1 million, and the net income margin halved to 3% from 6%.

At such high multiples, margin reductions are very bad news for investors.

What could make ASX tech stocks work from here

Two things would give ASX stocks some form of relief.

The first is any sign that the Reserve Bank will not need to raise rates. That is because falling yields lift long-duration valuations, such as those belonging to tech stocks, immediately.

The second is evidence that these businesses can convert revenue growth into profit growth without having to rely on acquisitions.

Foolish takeaway

Xero looks best positioned in the short-term, because it is growing at 30% with a strong network effect and it trades near a 52-week low.

WiseTech is cheaper than it was but still carries an unresolved regulatory investigation.

In contrast, Life360 has the strongest growth and the weakest proof of profitability.

A year of falling prices has made ASX tech stocks far more interesting than they were in September 2025.

It has not yet made them safe, and anyone buying here should expect more volatility before the rate cycle settles.

The post Are these ASX tech stocks finally a buy again? appeared first on The Motley Fool Australia.

More reading

• WiseTech shares are turning red again. Is the rally over?
• Why I think Zip and WiseTech shares could be buys in September
• Top 3 beaten-down ASX 200 shares from August worth a second look
• WiseTech shares had their best month in a year. Is this a buying opportunity?
• The five worst-performing ASX 200 shares in August unmasked

Motley Fool contributor Mark Verhoeven 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 Life360, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Life360, 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.

The team at Morgans have provided fresh commentary on several ASX shares. 

In good news for investors, the broker is optimistic about these three stocks. 

Here’s what the broker had to say. 

Collins Foods Ltd (ASX: CKF)

Collins Foods is a prominent quick-service restaurant operator, primarily known for managing KFC franchises across Australia and Europe.

Its share price is down almost 20% over the last year, however Morgans sees a rebound in sight following the recent AGM. 

The broker said Collins Foods AGM trading update was positive. 

Group sales rose 6.6% over the first 17 weeks of FY27, with Australia resilient and European SSS (same-store-sales) inflecting from the weak start over the last 4 weeks, which we view positively in a tough consumer environment. 

Trading strengthened through the last 4 weeks, with KFC SSS of +3.1% in AU, +3.1% in the Netherlands, driven by the new Halal-certified range, and -0.1% in Germany, a material improvement on the -7.8% (Netherlands) and -7.2% (Germany) start over the first 8 weeks.

The broker has a buy rating and A$10.60 target price on these ASX shares. 

From current levels, this indicates over 28% upside. 

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Dalrymple Bay Infrastructure owns and operates the metallurgical coal export facility at Dalrymple Bay,  located at the Port of Hay Point, south of Mackay in Queensland. 

It is the world’s largest coal export facility. 

It has risen 20% in the last 12 months, but share price weakness since June has led Morgans to upgrade its view on these ASX shares. 

We upgrade from HOLD to ACCUMULATE, given potential TSR at current prices of c.12% (including cash yield of 5.7%). 12 month target price +4 cps to $5.47/share due to refinements to tax modelling. Otherwise, no change in our fundamental outlook for the business over coming years.

These ASX shares closed trading yesterday at $5.27. 

Smartgroup Corporation Ltd (ASX: SIQ)

SmartGroup provides specialist employee management services to organisations throughout Australia. 

The company’s services include salary packaging, novated leasing, vehicle fleet management, payroll, employee share plan administration, and workforce optimisation.

Morgans is optimistic about the company’s next 12 months following its recent half-year results.

SIQ reported 1H26 NPATA of A$42.4m, up 11% yoy and broadly flat on 2H25. Strong revenue growth (+5.5% hoh) was absorbed by higher opex spend (+7.3% hoh), softening EBITDA margins to 41.1% (-100bps on 2H25). 

Given the meaningful share price pullback, we upgrade to an ACCUMULATE (previously HOLD). The 2H will benefit from the unwind of a substantial revenue pipeline, an ongoing supportive demand backdrop across novated leasing (policy led) and potential full-year capital management initiatives. A$12.15ps price target.

This indicates just over 7% upside from current levels. 

The post 3 ASX shares just got big upgrades and are tipped to rise almost 30% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Liontown, Collins Foods, and Goodman shares
• Here are the top 10 ASX 200 shares today
• Smartgroup posts record H1 2026 results: earnings jump, dividend up
• Dalrymple Bay Infrastructure posts stronger profit and higher distribution

Motley Fool contributor Aaron Bell 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 recommended Collins Foods and Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are certain ASX passive income shares that I’ll highlight in this article as excellent ideas for dividends to help generate good payments.

Some businesses have already provided guidance for the upcoming financial results that show a good dividend yield based on the appealing expectations.

Below are two of the higher-yielding ideas I like a lot.

Future Generation Global Ltd (ASX: FGG)

This idea is a listed investment company (LIC) which is an excellent source of passive income.

Future Generation Global aims to provide a reliable stream of income, which has regularly increased each year since FY19. For FY26, the business has provided guidance that it will increase its annual dividend per share by 5% to 8.4 cents per share.

That forecast translates into a forward grossed-up dividend yield of 7.3%, including franking credits, at the time of writing. I’m assuming no dividend growth from the ASX passive income share in FY27 for this article, but I do think there’s likely to be a dividend hike in 2027.

It pays for those dividends from the investment returns of its portfolio. It’s invested in a portfolio of 15 funds from fund managers focused on international shares. All of those fund managers work for free so that Future Generation Global can donate 1% of its net assets to charities focused on youth mental health.

There are more than 3,700 underlying shares across different markets and sectors, so it can offer Australians significant diversification.

Dexus Industria REIT (ASX: DXI)

This ASX passive income share is a leading real estate investment trust (REIT), in my view, due to the exposure that the portfolio provides.

It’s invested in a portfolio of industrial real estate across Australian cities. It has a diversified tenant base across the sectors of wholesale trade, construction, manufacturing, retail trade, logistics and more.  

The business says that it has ‘3%+’ embedded rental growth, with approximately 87% linked to fixed rental increases, with “strong inflation protection”. This can help protect and grow rental earnings amid higher interest rates.

With a 99% occupancy rate and a five-year weighted average lease expiry (WALE), the business has strong rental characteristics that can help fund good distributions.

It expects to pay a distribution per unit of 16.6 cents, which translates into a distribution yield of close to 6.9%.

$700 per month from ASX passive income shares

Neither of these ASX passive income shares pays dividends monthly, so we’re going to look at this as an annual goal, which can then be divided into monthly income. Receiving $700 per month is equivalent to $8,400 annually.

Between them, these two names have an average dividend yield of 7.1%. Receiving $8,400 per year at a dividend yield of 7.1% would require a total investment of approximately $118,300.

By investing in these two ASX passive income shares, along with other names for diversification, I think investors can build a solid level of income.

The post 2 ASX passive income ideas I’d use to generate $700 a month in 2027 appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with yields above 7%
• 3 ASX dividend shares raising dividends like clockwork
• How much is needed in superannuation to target a $2,500 monthly passive income?
• How much do I need to retire on $120,000 a year at 55?
• Future Generation Global earnings: Profit and revenue drop, dividend rises

Motley Fool contributor Tristan Harrison has positions in Future Generation Global. 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.