The market may be trading notably lower this year because of the pandemic, but that hasn’t held back all shares.
Three ASX tech shares that have been smashing the market in 2020 are listed below. Here’s why they are on fire this year:
The Afterpay Ltd (ASX: APT) share price has been a standout performer this year with a sizeable 61.7% gain. Investors have been buying the payments company’s shares after its strong sales and customer growth continued during the pandemic. In addition to this, the arrival of WeChat owner Tencent Holdings as a substantial shareholder gave Afterpay’s shares a major lift. Investors appear optimistic the ~US$500 billion Chinese conglomerate will help the company expand into Asia in the future.
The NEXTDC Ltd (ASX: NXT) share price has been a strong performer with a 38% gain year to date. The catalyst for this has been a series of positive updates by the data centre operator. Those updates have revealed major contract wins and increasing demand for capacity within its world class centres. This appears to have been driven partly by the pandemic accelerating the shift to the cloud through the work from home initiative.
The Pushpay Holdings Ltd (ASX: PPH) share price has been a fantastic performer in 2020 with a whopping 85% gain. Investors have been scrambling to buy the donor management platform provider’s shares after the release of its full year results for FY 2020. Pushpay revealed that demand for its services has been growing very strongly, even during the pandemic. This led to the company reporting a 1,506% increase in full year EBITDAF to US$25.1 million. Pleasingly, management expects its strong growth to continue in FY 2021. It has forecast EBITDAF growth of between 91.2% and 107% this year. But it certainly isn’t resting on its laurels. It is targeting a 50% share of the medium to large church market over the long term. This represents a US$1 billion revenue opportunity, which is materially more than FY 2020’s operating revenue of US$127.5 million.
Missed out on these gains? Then don’t miss out on the highly rated shares which are recommended below…
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.
One is a diversified conglomerate trading over 30% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…
Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.
But you will have to hurry because the cheap share prices on offer today might not last for long.
As of 2/6/2020
More reading
- Where should you invest $1,000 in ASX shares?
- These ASX shares were among the best performers in May, surpassing the ASX 200
- The 3 ASX tech stocks that helped this fund manager outperform in May
- 3 investing secrets for success with ASX shares
- 5 things to watch on the ASX 200 on Tuesday
Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T 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 Afterpay and these top ASX tech shares are on fire in 2020 appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2zLNEYs
Leave a Reply