When it comes to investing there are few industries which get investors as excited as the information technology industry. I would put this down to the fact that no other industry can produce a billion dollar company out of nothing in such a short space of time.
At present there are a number of tech shares on the ASX with a market cap of less than $1 billion dollars, but in my opinion have the potential to be worth far more.
I think these four tech shares could be worth more than $1 billion dollars one day and are well worth adding to your watch list today:
Altium Limited (ASX: ALU)
Altium is a company looking to profit on the back of the growth of the Internet of Things. It enables companies to design printed circuit boards to be used in connected devices. With its addressable market expected to grow at a strong rate thanks to growing demand for printed circuit boards, Altium could have a bright future ahead of it.
Freelancer Ltd (ASX: FLN)
Freelancer connects small businesses with freelancers through the world’s largest outsourcing marketplace. It connects over 18 million employers and freelancers in over 250 countries across the world for a variety of jobs that include software development, web design, data entry, and accounting. It has been estimated that a typical $2,000 contract job for a small business could cost as little as $200 through Freelancer’s network.
Hansen Technologies Limited (ASX: HSN)
Hansen Technologies develops and supports customer care and billing solutions for a great number of energy, pay TV, and telecommunications service providers across the world. Clearly its clients are very pleased with its services. It has 30 pay TV operators on its books with an average tenure of 11 years. The ability to create long-standing relationships with its clients has allowed it to grow its earnings at an average of 7% per annum for the last five years. I see little reason this couldn’t continue to be the case in the future.
iSentia Group Ltd (ASX: ISD)
As one of the world’s leading media intelligence companies, iSentia provides media monitoring, tracking, and analysis services to some of the biggest multinational companies in the world. The company has a market cap of around $750 million currently, but I believe it could cross over the $1 billion mark by the end of the year. This growing company is definitely worth adding to your watch list in my opinion.
There is a fifth company which I think investors should be taking a look at also. I believe this exciting tech share could skyrocket in the next few years.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium and Hansen Technologies. 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.
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