Author: openjargon

Every blue chip starts somewhere.

Before a company becomes a market heavyweight, it usually spends years building scale, proving its business model, and earning investor confidence.

Not every growth share will make that transition. But some ASX companies already have the ingredients: strong market positions, large addressable markets, and room to keep expanding.

Here are three ASX shares that could become much larger over time.

Hub24 Ltd (ASX: HUB)

Hub24 has become one of the clearest winners from the shift in wealth management technology.

The company operates an investment platform used by financial advisers and their clients. These platforms help manage portfolios, reporting, administration, and access to investment products.

The reason Hub24 stands out is that it is operating in a market that still has room to modernise. Advisers continue to move away from older platforms, and the growth of Australia’s superannuation and investment pool provides a strong backdrop.

It is already a high-quality business. If it keeps winning market share, Hub24 could become an even more important part of Australia’s wealth management infrastructure.

Life360 Inc (ASX: 360)

Life360 is an ASX share building a global consumer platform around safety and connection.

Its app helps families stay connected through location sharing, driving insights, emergency assistance, and related services. That gives the company a regular place in users’ daily lives, which is valuable for any subscription-based platform.

The next stage of the story is monetisation. Life360 already has a large user base. The opportunity is to increase the value of that base by converting more users to paid plans and adding services that make the platform harder to leave.

This gives the company more than one way to grow. It can add users, increase subscription penetration, lift revenue per user, grow its advertising revenue, and expand its product offering.

The business is still relatively young compared with established ASX blue chips. But if it continues scaling globally, Life360 could look very different in a decade.

Megaport Ltd (ASX: MP1)

Megaport is another ASX share with a much larger opportunity than its current size suggests.

The company provides on-demand network connectivity, allowing businesses to connect to cloud providers, data centres, and digital infrastructure more flexibly.

That role is becoming more important as companies use multiple cloud platforms and need faster, more adaptable infrastructure.

The opportunity has also widened following Megaport’s acquisition of Latitude.sh. This expands the company beyond connectivity and into compute infrastructure, giving it exposure to more of the digital infrastructure stack.

Cloud computing, artificial intelligence, and data-heavy applications all need fast, flexible infrastructure behind them. Megaport is trying to build a platform that sits closer to that demand.

If it gets that right, Megaport has the potential to become a much larger ASX technology business.

The post  3 ASX shares that could be future blue chips appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy before the market wakes up
• Could these ASX growth shares help you retire rich?
• $3,000 invested in this ASX 200 tech stock in April is now worth $5,562
• 3 high-quality ASX shares to buy this week
• Why these 2 ASX superannuation stocks could quietly build serious wealth

Motley Fool contributor James Mickleboro has positions in Life360 and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Life360, and Megaport. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think long-term investing becomes a lot easier when the focus shifts away from what a share price might do next month and towards what a business could look like in a decade.

The market can be noisy in the short term. Interest rates, inflation, consumer confidence, earnings downgrades, and global events can all move share prices around quickly.

But over 10 years, I think business quality, growth options, balance sheet strength, and management execution tend to do far more of the heavy lifting.

Two ASX 200 shares I think look interesting for that kind of timeframe are named in this article.

Xero Ltd (ASX: XRO)

The first ASX 200 share I would be happy to buy for the next decade is Xero.

Xero has already built a strong position in small business accounting software, but I do not think the opportunity ends there.

To me, the bigger picture is that Xero can become more important to small businesses over time. Accounting is the starting point, but the platform can also help with invoicing, payroll, payments, tax, reporting, cash flow, and financial decision-making.

That gives Xero a lot of ways to deepen its relationship with customers.

Small business owners do not usually want more admin. They want tools that save time, reduce mistakes, and help them understand how their business is performing. Xero is well placed for that because its software sits close to the financial heartbeat of a business.

I also think artificial intelligence (AI) could become a useful tailwind over time. I am not expecting AI to magically transform the company overnight. But over the next decade, automation could make Xero’s products more valuable by helping customers with tasks such as reconciliation, forecasting, document handling, reminders, and simple business insights.

The US opportunity is another reason I like the stock. Xero is already a much larger business than it used to be, but its global runway still looks meaningful. Expanding in the United States will not be easy, given the competitive landscape. But if Xero can keep improving its product and growing its brand, I think it could be a materially larger company in 10 years.

Goodman Group (ASX: GMG)

Another ASX 200 share I would consider buying for the long term is Goodman.

Goodman has been one of the more impressive ASX 200 growth stories over the years, and I think its opportunity has evolved in an interesting way.

The company is best known for industrial property, including logistics facilities that support ecommerce, supply chains, and modern distribution networks. That part of the business still looks attractive to me. Companies need well-located, efficient space close to customers, transport routes, and major cities.

But I think Goodman’s data centre opportunity could be the bigger long-term driver.

The growth of cloud computing, AI, streaming, digital services, and enterprise software is creating huge demand for data centre infrastructure. These facilities need more than just land. They need the right locations, planning capability, capital, customers, and access to power.

That is where Goodman’s skill set could be valuable. This is not a low-risk opportunity. Data centres can be capital-intensive, and expectations for Goodman are already high. If growth disappoints, the share price could be vulnerable.

But I like that Goodman is not chasing a short-term trend from a standing start. It already has deep property expertise, global relationships, and a long record of developing high-quality assets in constrained locations.

Foolish takeaway

I would not expect either of these ASX shares to move in a straight line over the next decade. In fact, I would be surprised if they did.

Xero and Goodman both trade on expectations of growth, and that can make them sensitive to market mood. But I think both businesses are exposed to changes that could keep playing out for many years.

For patient investors, that is the kind of setup I like. The next 12 months may be uncertain, but a decade gives quality businesses time to reinvest, adapt, and become much larger than they are today.

The post 2 ASX 200 shares I’d buy for the next 10 years appeared first on The Motley Fool Australia.

More reading

• Should you buy and hold Xero shares for 10 years?
• 2 ASX 200 shares I’d buy today and hold for years
• 3 amazing ASX 200 shares I’d buy and forget about until 2036
• 3 of the best ASX 200 blue-chip shares to buy now
• How to build a $150,000 ASX share portfolio from scratch

Motley Fool contributor Grace Alvino 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 Goodman Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares can be a useful source of passive income, particularly when they have strong market positions, healthy cash generation, and room to keep rewarding shareholders.

With that in mind, here are two top ASX dividend shares that brokers think could be in the buy zone this month:

Dicker Data Ltd (ASX: DDR)

Dicker Data is an ASX dividend share that has built a strong position in the technology distribution market.

The company distributes hardware, software, cloud, cybersecurity, and other technology products for many of the world’s largest vendors. This gives it exposure to the ongoing digital investment needs of businesses across Australia and New Zealand.

One positive with Dicker Data is the essential nature of its role in the technology supply chain. Vendors rely on the company to reach resellers, while resellers use its platform, product range, and support to serve business customers.

This has helped Dicker Data generate solid earnings and cash flows over the years. It also has a history of paying regular dividends, which has made it a popular name with income-focused investors.

The technology sector can still be cyclical, particularly when businesses delay spending or margins come under pressure. But over the long run, demand for cloud, security, networking, and enterprise technology should continue to support the company’s market opportunity.

UBS is bullish on the company and has a buy rating and $11.30 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 47 cents per share in FY 2026 and then 51 cents per share in FY 2027. Based on its current share price of $8.91, this equates to dividend yields of 5.3% and 5.7%, respectively.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre may not be the first name investors think of for dividends, but it has the potential to become an attractive income option as travel conditions normalise.

The company is one of the best-known travel businesses on the ASX, with exposure to both leisure and corporate travel. While the leisure side remains important, the corporate travel division has become a key part of the investment case.

Corporate travel can provide repeat business, scale benefits, and a stronger platform for earnings growth if travel activity continues to recover. Flight Centre has also spent recent years reshaping its cost base and improving the efficiency of its operations.

This means that as revenue grows, there is scope for a greater portion of that improvement to flow through to earnings. Stronger profits can then support higher dividends, provided management remains comfortable with the balance sheet and outlook.

Morgans is a fan of the company and recently put a buy rating and $14.50 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 41 cents per share in FY 2026 and then 47 cents per share in FY 2027. Based on its current share price of $9.88, this would mean dividend yields of 4.1% and 4.75%, respectively.

The post 2 buy-rated ASX dividend shares to buy for 4% to 5% yields appeared first on The Motley Fool Australia.

More reading

• Brokers say these ASX 300 shares are too cheap to ignore
• Why James Hardie, Flight Centre and Webjet shares are making waves on Wednesday
• Down 36% in 2026, Flight Centre shares slip again on new fintech update
• 5 ASX shares with 50% to 60% upside ahead: Experts
• Here’s what Flight Centre’s latest trading update tells investors about FY2026

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 positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When a stock surges 30% in two trading sessions, most investors assume they missed their opportunity.

In the case of Catapult Sports Ltd (ASX: CAT), however, the recent rally may be the beginning of a much longer re-rating.

The sports technology company just delivered its strongest full-year result in its listed history.

The numbers behind the business tell a story that deserves far more attention than it has received.

What Catapult actually does

Catapult provides performance analytics, athlete monitoring, video analysis, and scouting intelligence to professional sports teams around the world.

Think GPS wearables tracking player movement, heart rate, and workload during training and matches, combined with video analysis tools that help coaches and analysts break down tactics and opponent patterns.

The company counts more than 3,800 professional sports teams across 40 sports and 100 countries as customers, including teams in the NFL, NBA, EPL, and AFL.

Critically, once a team integrates Catapult’s systems into its training environment, switching costs are extremely high.

Customer retention sits above 96%, a figure that reflects just how embedded the platform becomes in a team’s daily operations.

The FY2026 result

The full-year result released this week was outstanding.

Catapult delivered record revenue of US$140.7 million, up 19% in constant currency, alongside a 67% jump in management EBITDA to US$24.7 million.

Annualised Contract Value (ACV), the key forward-looking metric for a subscription business like Catapult, grew 28% in constant currency to US$133.8 million.

The company added 576 new professional teams during the year and pushed its average ACV per professional team above US$30,000 for the first time, up 10% year-on-year.

Contribution margin expanded from 49% to 53%, and operating profit margin improved from 13% to 18%, reflecting the powerful operating leverage emerging as the business scales.

CEO Will Lopes said:

FY26 was a transformational year for Catapult. We set ourselves ambitious targets: maintain our organic growth rate, reinvest meaningfully in our platform, and stay focused through a period of significant M&A. We delivered on all of them.

What Bell Potter thinks

Bell Potter responded immediately to the result with an upgraded price target of $4.65, up from $4.50, while retaining its buy rating.

The broker stated:

FY26 management EBITDA, the key earnings metric, of US$24.7 million was 8% above our forecast of US$23.0 million and 10% above consensus of US$22.4 million. Notably, the guidance was 50% growth and it came in at 67%.

Bell Potter added that FY2027 guidance for ACV growth of 27% to 28% in constant currency and EBITDA growth of approximately 50% year on year underpins its confidence in the stock.

In addition, Catapult enters FY2027 in a strong financial position, with no debt and free cash flow of US$6.5 million.

This should give it the flexibility to continue investing in product innovation and bolt-on acquisitions.

The bigger picture

The global sports analytics market is still in its early stages of adoption.

Most professional teams globally have not yet deployed the full suite of performance analytics tools that Catapult offers.

What’s more, the company’s land-and-expand model means that each new customer relationship has the potential to grow substantially over time as teams add more modules and products.

Lastly, the AI integration roadmap that Catapult outlined at its strategy session earlier this year points to a new generation of products that could meaningfully increase the value the platform delivers to each customer.

Foolish takeaway

Catapult Sports is not a cheap stock on traditional metrics, and the recent share price surge has compressed the margin of safety somewhat.

However, for investors who can look past the short-term valuation debate and focus on the quality of the underlying business, the compounding growth in contracted revenue, and the size of the untapped market opportunity, Catapult Sports may be one of the more interesting ASX small-caps in the technology sector today.

The post Why this ASX small-cap could be the most interesting tech stock on the ASX right now appeared first on The Motley Fool Australia.

More reading

• Are these ASX shares a buy, hold or sell after jumping 8% or more?
• Why Brightstar, Catapult Sports, IperionX, and Zip shares are charging higher
• Is this ASX tech stock a buy after rocketing 18% yesterday?
• 5 things to watch on the ASX 200 on Thursday
• Why Catapult, GenusPlus, Meeka Metals, and TechnologyOne shares are pushing higher today

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 Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to regular passive income, there is one ASX dividend stock which looks particularly attractive to me right now, and it pays its shareholders every single month.

This is great news for investors looking for a stable fund which pays a reliable income, and offers long-term growth potential.

I’ve previously written about monthly-paying ASX dividend stocks such as BetaShares Dividend Harvester Active ETF (ASX: HVST), Plato Income Maximiser Ltd (ASX: PL8), and Metrics Master Income Trust (ASX: MXT). They all offer a reliable monthly income at an attractive rate.

But I think the BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) trumps them all.

Here’s why.

How does YMAX work?

The Betashares YMAX is an ASX-listed exchange-traded fund (ETF) which targets the 20 largest Australian companies listed on the ASX.

The fund uses what’s called a ‘covered call’ strategy. This is expected to generate an income significantly exceeding the dividend yields of the underlying share portfolio over the medium term. 

It generally offers lower volatility than a direct investment in the underlying shares. It does not aim to track an index.

What does its portfolio look like?

The ASX dividend stock invests in a portfolio that provides exposure to the largest 20 blue-chip Australian shares listed on the ASX, combined with call options written on the securities in the share portfolio.

The portfolio is passively managed. This means the weighting of each security generally mirrors the weighting of the security within the Solactive Australia 20 Index.

The share portfolio also aims to generate dividends, franking credits, and capital growth. 

At the time of writing, the fund is heavily weighted into the financial sector (47%) and the materials sector (21.4%). 

And as of the 30th of April, the top two holdings in its portfolio are Commonwealth Bank of Australia (ASX: CBA) at 17.5% of the portfolio, and BHP Group Ltd (ASX: BHP) which accounts for 16%. Westpac Banking Corp (ASX: WBC) at 8%, and National Australia Bank Ltd (ASX: NAB), which around for 7.4% of the portfolio, complete the top four.

ANZ Banking Group Holdings Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES), Woodside Energy Group Ltd (ASX: WDS), CSL Ltd (ASX: CSL) and Telstra Group Ltd (ASX: TLS) make up the remainder of the top 10 exposures in the fund.

What ASX dividends does the stock pay its shareholders?

YMAX has paid quarterly dividends to its shareholders since April 2013. But in January this year, its payment frequency was amended to monthly.

As at 30th April 2026, the YMAX ETF has a 12-month gross distribution yield of 9%. It’s 12-month distribution yield is 7.6%. The total 12-month franking level is 41.2%.

The fund most recently paid a $0.047623 per unit dividend to shareholders on Monday this week. This translates to an annual distribution return of 8.26%.

The post Here’s a 9% ASX dividend stock to consider for a monthly passive income appeared first on The Motley Fool Australia.

More reading

• The top 3 Betashares ASX ETFs over the past year
• 5 things to watch on the ASX 200 on Friday
• If you invested $10,000 in CBA shares a decade ago, here’s what it would be worth now
• 3 ASX 200 shares I’d buy before the market wakes up
• Should I invest $5,000 in Telstra shares before the end of May?

Motley Fool contributor Samantha Menzies 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, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

All Australians aspire to live a comfortable retirement lifestyle. That’s one where your superannuation balance is high enough to maintain a good standard of living, do some regular activities, meals out, and perhaps even an occasional overseas trip.

But how do you know if you’re on track?

It’s important to keep on top of how much superannuation you have (and should have) at any age, but sometimes it’s difficult to tell if your superannuation balance is ahead or behind.

The problem is that Australians at age 44 are at a very different life stage to those aged 64.

Many 44-year-olds feel like they’re at a financial crossroad, where their income is starting to peak, and superannuation accumulated in their early careers is beginning to compound. Many even return to the workforce after having children, or raise their working hours.

By age 64, some Australians have already retired, and those who haven’t have only about a year left before they can access their superannuation, regardless of their working situation. And they’re only three years from receiving the Age Pension (if eligible). At this age, the priority should be making your retirement a reality and creating a short-term plan to get there.

Here’s a rundown of the average superannuation balance for 44-year-olds versus 64-year-olds in 2026, using some data from the Association of Superannuation Funds of Australia (ASFA).

How much superannuation does the average Australian have at age 44?

There isn’t an exact figure for Australians aged 44, but there is a bracket that can help give us a good guide.

According to ASFA, at age 40-44, the average male has $140,680, and the average female has $109,209. 

How does yours compare?

How much superannuation does the average Australian have at age 64?

The average 60 to 64-year-old Australian male has an average superannuation balance of $395,852, and women have around $313,360.

Is your superannuation on track with other Aussies the same age?

44 vs 64: What does the gap show us?

The difference between super balances at age 44 versus age 64 is significant.  

Over the 20-year period, average balances increased by over $200,000 for both men and women.

This is partly due to additional contributions, but it also underscores the importance of accumulating wealth even in your 40s and letting it compound in your 60s. 

But, these average balances don’t look enough to retire on

Unfortunately, that’s correct.

A comfortable retirement is expected to cost approximately $54,840 per year for individuals and $77,375 per year for couples.

To afford that, a single person will need a superannuation balance of around $630,000, and couples need around $730,000.

I’ve crunched the numbers using ASFA’s Super Balance Detective tool. In order to reach the superannuation balance needed for a comfortable retirement, you’d need a balance of around $225,500 at age 44, and this would need to increase to around $581,000 by age 64.

How does your balance stack up now?

The post Average superannuation balance in Australia in 2026: 44 vs 64 year olds appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy before the market wakes up
• Should you buy and hold Xero shares for 10 years?
• Here are the top 10 ASX 200 shares today
• Up 300% in a year, this ASX tech stock just hit its highest level since 2023
• Morgans says these ASX shares could rise 12% to 20%

Motley Fool contributor Samantha Menzies 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.

Some opportunities are obvious. Others take a little longer for the market to recognise.

That can happen when a company is in the middle of a reset, when the story is improving beneath the surface, or when investors are still focused on what went wrong last year.

Here are three ASX 200 shares that could be worth buying before sentiment improves.

CSL Ltd (ASX: CSL)

CSL is no longer the untouchable market favourite it once was.

After a painful run of downgrades, impairments, and execution issues, investors have had to reassess the biotech giant. The premium valuation has gone, and trust needs to be rebuilt.

But that is also why the stock is interesting.

CSL still owns valuable global positions in plasma therapies, vaccines, and specialist medicines. Demand for many of its core products remains supported by long-term healthcare needs, and the company has the scale to improve margins if management can execute better.

This is not the CSL of old. It is a high-quality healthcare business going through a difficult repair period.

At a much lower valuation, the market may now be giving investors a chance to buy before evidence of a recovery becomes clearer.

Megaport Ltd (ASX: MP1)

Megaport is another ASX 200 share that looks more interesting than it did a year ago.

The company provides on-demand connectivity between businesses, cloud providers, and data centres. As more companies move workloads into the cloud, that flexibility becomes increasingly useful.

What makes the story more compelling now is its acquisition of Latitude.sh. This expands Megaport beyond connectivity and into compute infrastructure, widening its addressable market.

That matters because the cloud and artificial intelligence buildout is not only about software. It also requires networks, compute, and flexible infrastructure that can scale quickly.

Megaport still needs to prove that it can turn opportunity into sustainable earnings growth. But if it executes well, the business could be much larger in a few years.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates has been a frustrating ASX 200 share for investors.

The owner of Penfolds has dealt with weak conditions in the United States, changing consumer habits, and pressure on earnings. Sentiment toward the stock has been poor.

But the market may be overlooking the value of the company’s premium wine assets.

Penfolds remains a powerful global brand, with strong recognition in Asia and other international markets. The business is also working through a reset of its US operations, which could improve returns if management can simplify the portfolio and focus on higher-quality earnings.

This is not a risk-free turnaround. Consumer demand, execution, and inventory management all need watching.

But if Treasury Wine can stabilise its problem areas while continuing to grow its strongest brands, the current pessimism may prove too harsh. Encouragingly, a recent update suggests that its outlook is improving.

The post 3 ASX 200 shares I’d buy before the market wakes up appeared first on The Motley Fool Australia.

More reading

• Down 50%: Why this ASX 200 share could be a smart buy before confidence returns
• $3,000 invested in this ASX 200 tech stock in April is now worth $5,562
• 3 top ASX dividend shares to buy with $3,000
• 3 high-quality ASX shares to buy this week
• 2 ASX 200 shares that could be too cheap to ignore

Motley Fool contributor James Mickleboro has positions in CSL, Megaport, and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Megaport, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. 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.

Xero Ltd (ASX: XRO) has been one of the ASX’s great technology share success stories.

But after years of strong growth, the question is whether the cloud accounting company still has enough runway to be a genuine buy and hold option for the next decade.

I think the answer is yes.

A platform at the centre of small business

The strength of Xero is that it sits inside one of the most important parts of a small business: its finances.

Accounting software is not something a business owner changes lightly. Once invoices, payroll, payments, reporting, bank feeds, and adviser relationships are connected to a platform, switching becomes disruptive.

That gives Xero a sticky customer base and a strong foundation to build from.

The company is no longer just trying to sell cloud accounting subscriptions. It is building a broader financial operating system for small businesses, bringing together accounting, payroll, payments, insights, and automation.

That is important because the more jobs Xero can solve, the more valuable the platform becomes.

The US opportunity remains important

Xero already has strong positions in Australia, New Zealand, and the UK.

But the United States remains the market that could change the company’s long-term profile.

The acquisition of Melio gives Xero a stronger payments capability in the US, which is important because accounting and payments are closely linked for small businesses.

Xero’s recent result showed US revenue increased strongly, with the company reporting 240% headline growth and 30% organic growth excluding Melio. Its US customer base also increased to 424,000.

The US will not be easy. It is competitive and will require investment. But if Xero can keep building traction, it gives the company a far larger growth opportunity than its home markets alone.

AI could deepen the moat

Artificial intelligence (AI) is both a risk and an opportunity for software companies.

For Xero, it looks more like an opportunity.

The company already has deep customer data, financial workflows, bank feed connections, tax integrations, payment rails, and trusted adviser relationships. These are not easy for a new AI tool to replicate.

Xero is using AI to automate more of the work small businesses and accountants do every day. Its recent update highlighted more than 40 million transactions reconciled through auto bank reconciliation, with reported accuracy of 97%. It also said more than 500,000 customers had adopted new GenAI features launched in the past 18 months.

Clearly AI is not just a buzzword here. It can help make the product more useful, improve customer efficiency, and potentially support future revenue growth.

Should you buy and hold Xero shares?

I would be comfortable buying and holding Xero shares for 10 years.

The company has a sticky product, a large global market, a growing payments opportunity, and a strong position in small business financial workflows.

There will be risks. But for patient investors, I see Xero as one of the best ASX growth shares to hold for the long term.

The post Should you buy and hold Xero shares for 10 years? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares I’d buy today and hold for years
• 3 amazing ASX 200 shares I’d buy and forget about until 2036
• 4 ASX All Ords shares tipped to rise 60% to 75%
• 2 ASX shares tipped to grow 50% or more in the next 12 months
• How to generate $20,000 a year in passive income on the ASX

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) was back to the races this Thursday, reversing yesterday’s chunky loss and pushing the value of many ASX shares decisively higher.

In what has turned out to be an exceptionally volatile week of trading, the ASX 200 opened comfortably in the green today and stayed there until the closing bell. The index ended up finishing 1.47% higher at 8,621.7 points.

This happy Thursday session on the local markets comes after a similarly bullish night over on the American exchanges.

The Dow Jones Industrial Average Index (DJX: .DJI) was on fire, rising a happy 1.31%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was even more enthusiastic, gaining 1.54%.

Let’s get back to the ASX now and check out how today’s optimism percolated down into the different ASX sectors.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why Brightstar, Catapult Sports, IperionX, and Zip shares are charging higher
• Why is everyone talking about DroneShield shares this week?
• What April’s unemployment print means for ASX 200 investors
• How high could James Hardie shares go? Brokers have their say
• Why is the ASX 200 going gangbusters on Thursday?

Motley Fool contributor Sebastian Bowen 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 DroneShield and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Weebit Nano Ltd (ASX: WBT) shares are having another huge session on Thursday.

The semiconductor technology stock is up 13.64% to $6.83 at the time of writing.

Earlier today, it climbed as high as $6.94. The last time Weebit Nano shares traded at that level was in June 2023.

The move caps off a powerful run for shareholders. The stock is now up almost 70% this month and more than 300% over the past year.

So, what has investors piling back into this ASX tech stock?

Why Weebit Nano shares are hot again

Weebit Nano has been gaining attention because of progress with its semiconductor memory technology.

The company develops ReRAM, which stands for Resistive Random-Access Memory.

This type of memory is designed to keep data without power, while using less energy than some existing memory technologies.

Its technology gives investors exposure to several high-growth markets, including AI, connected devices, cars, robotics, and industrial automation.

That gives the stock exposure to several high-growth technology markets.

Investors have also been watching the company’s move from development towards commercial use.

Earlier this month, Weebit Nano said two product customers had successfully taped-out chip designs using its ReRAM module.

Tape-out means a chip design has been released to manufacturing.

One of those customers has already produced a functional prototype.

Both customers are now expected to continue testing before any move into broader production.

The rally is back on track

The speed of the rally has also been difficult to miss.

Weebit Nano shares were trading as low as $3.87 in late April. Less than a month later, they have now traded as high as $6.94.

The company also recently completed a strongly supported share purchase plan (SPP), raising about $15 million from eligible shareholders.

But the share price did not rally straight away after that update.

Weebit Nano closed at $6.80 last Thursday, then fell for 3 straight sessions. The stock dropped 5% on Monday, 1.39% on Tuesday, and 5.65% on Wednesday to finish at $6.01.

Today’s rebound suggests investors are looking beyond the recent capital raising and focusing again on the company’s commercial progress.

Foolish bottom line

Weebit Nano remains a high-risk tech stock, but investors are clearly chasing its momentum again.

The business is still at the stage where customer milestones and commercial progress can move the share price quickly.

But the next test is whether this recent progress can eventually turn into meaningful commercial revenue.

The post Up 300% in a year, this ASX tech stock just hit its highest level since 2023 appeared first on The Motley Fool Australia.

More reading

• Are these ASX shares a buy, hold or sell after rocketing to record highs last week?
• Why did shares in this ASX technology company surge more than 20%?
• Up 211% in a year, why are Weebit Nano shares rocketing another 12% today?
• Why Brainchip, Minerals 260, Nuix, and Weebit Nano shares are racing higher today

Motley Fool contributor Aaron Teboneras 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.