The Australian share market is home to a number of high quality tech shares. Some of which have such strong growth prospects I believe they could be the blue-chip shares of tomorrow.
Here's why I think they could be great buy and hold investments:
Nextdc Ltd (ASX: NXT)
I believe this leading data centre operator is in a strong position to deliver strong earnings growth for the next decade. As more and more businesses migrate their services over to the cloud, I believe NEXTDC will continue to see demand for its services increase. In the first-half of FY 2017 the company reported a 32% rise in contracted utilisation to 30 megawatts. This led to the company posting an incredible 110% increase in half-year EBITDA to $23.9 million. While its shares are expensive, I believe its growth potential justifies the premium.
Webjet Limited (ASX: WEB)
This fast-growing travel agent has been a big winner from the incredible rise in online travel bookings. Such is the case that earlier this year Webjet reported market share gains and bookings growth from all of its businesses. This led to the company posting an impressive 96% jump in half-year net profit after tax. Like NEXTDC, its shares are a little on the expensive side following strong gains in the last 12 months. But with the second-half expected to be equally strong, I think Webjet is a company worth paying a premium to own.
XERO FPO NZX (ASX: XRO)
Xero is a provider of cloud-based accounting software for small to medium enterprises. The company has been growing very strongly in the last few years and just recently broke through the 1 million subscribers mark. While Xero has had a lot of success in the ANZ and UK markets, it is still only just getting started in the key North American market. If the company can replicate its local success in this key market, then I believe it can grow significantly over the next few years.
