Insights

Why I would buy Xero (ASX:XRO) and this ASX tech share

Here’s why I think Xero Limited (ASX:XRO) and this ASX tech share could be long term market beaters…
The post Why I would buy Xero (ASX:XRO) and this ASX tech share appeared first on Motley Fool Australia. –

woman touching digital screen stating fintech

One area of the market which I think is a great place to look for investment ideas is the tech sector.

At this side of the market there are a good number of shares which have the potential to generate strong returns for investors over the next 10 years.

Two ASX tech shares that I think investors should take a look at are listed below:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software which helps sales and service organisations to increase their sales win rates and improve customer satisfaction. This is achieved through improved mobile worker productivity. It was a very strong performer in FY 2020, delivering a 53% increase in annualised recurring revenue (ARR) growth to $35.8 million.

More of the same is expected in FY 2021, with management guiding to ARR growth of 36.9% to 48% year on year. This is still only a fraction of its overall market opportunity. Management expects the sales engagement platform market to be worth $6 billion a year by 2021.

Xero Limited (ASX: XRO)

Another high quality ASX tech share to buy is Xero. Over the last few years Xero has evolved from being a cloud-based accounting solution to a full service small to medium sized business solution. Unsurprisingly, this has gone down well with small businesses across the globe, leading to stellar subscriber growth over the last few years.

At the last count the company had almost 2.5 million subscribers using its platform. While this is certainly a large number, it is still only scratching at the surface of its overall market opportunity. In fact, management notes that less than 20% of its global English-speaking target market is using cloud-based accounting software currently. I believe more and more will start embracing the new technology in the coming years. And given the quality of Xero’s platform, I suspect it will be very well-positioned to benefit from this shift.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended BIGTINCAN FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why I would buy Xero (ASX:XRO) and this ASX tech share appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!