This year tech shares have been on a sinusoidal move and have rallied globally, with Facebook, Alphabet Inc and Netflix adding about 2 to 3 percent each, as seen in the recent weeks. Microsoft, Amazon and Apple also closed higher. Joining the lot were Australian shares that have opened higher with Australian dollar to be more or less steady. Meanwhile, China is set to match the new move flagged by the US on tariffs stockas the two economic powerhouses step closer to a trade war that could derail global growth. Amidst this, few tech players among top stock picks of the past are worth mentioning.
One of the technology stocks that did well in the past is Xero Limited (ASX: XRO), which deals in cloud accounting. Sankar, the ex-CEO has helped build the foundations for Xero’s diversified global growth strategy while also enabling significant improvement in the operating performance of the business since he joined the group in 2015. Xero aims to set a connection within the global economy having millions of businesses linked up to their advisors and banks and with each other. Xero reported for 1,386,000 subscribers worldwide and $484 annualized monthly recurring revenue as at March 18, 2018 and has posted a strong revenue growth for the international segment of 49% on a year on year (yoy) basis. Contribution in the international segment has been good while the loss has reduced with investments in new geographies as South East Asia. Also, in United Kingdom, the group has seen a 47% of subscriber growth to 312,000 and revenue growth of 60% YOY.
In a decade’s time from 2008 to 2018, Xero has built the platform and the business for long term success, and they’ve also delivered strong results – growing from $134,000 of revenue to more than $100 million a quarter. Xero Limited was trading at a market price of $45.65 as at July 12, 2018, post mid-day trading, with a performance change of 81.75% or rise over the past 12 months. Given the run-up, the group has been among key technology stock picks for a couple of years and now trades at a higher level with some more space for growth.
Another stock is Nearmap Limited (ASX: NEA) which is expected to show a record growth in group Annualized Contract value (ACV) under its FY 2018 results that seem to be exceeding guidance provided at…

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here