Is it too late to buy this red-hot ASX tech share?

Credit: World Bank Photo Collection

Shares of Aconex Ltd (ASX: ACX) have continued their dominant run over the last month, climbing a little over 21% to $6.25 today.

It has also been one of the ASX’s hottest shares over the last year, more than tripling in price, while they have gained almost 230% since their ASX debut in December 2014.

One-year price chart; Source: ASX

One-year price chart; Source: ASX

Unfamiliar to many investors, Aconex is a business that provides construction collaboration software via its Software-as-a-Service (SaaS) subscription platform.

Basically, it enables organisations around the world to collaborate across the lifecycle of construction projects, facilitating and enhancing tasks such as document management, workflows, field management and asset hand-over.

The company is growing quickly and offers solid margins which should improve as it continues to expand its client-base. It has also recently completed its acquisition of the Europe-based Conject Holding GmbH, which should improve its global reach. As an addition, the company also expects the acquisition to be “significantly accretive to Aconex earnings per share (EPS)” during the 2017 financial year.

Of course, acquisitions do introduce new risks that investors need to be aware of. As investors of Slater & Gordon Limited  (ASX: SGH) quickly discovered, companies may overpay on their acquisitions while the two existing businesses mightn’t integrate as effectively as first planned. However, acquisitions can also pave the way for new growth.

Unfortunately, however, it seems that many of the early gains have already been made. The company already boasts a market value of roughly $1.04 billion, despite reporting revenues of just $55.7 million and a net profit of $4.6 million during the latest half-year period.

Investors could still look to buy Aconex today, although I don't think it's a bargain. If Aconex is looking a little pricey to you as well, there is another great technology business you may want to consider instead. This relatively unknown technology share is growing rapidly and offers a fat, fully franked dividend! Best of all: this top stock idea for 2016 is yours FREE! Just click here, enter your email address and claim your free report - no payment or credit card required!

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.