Is it too late to buy XERO FPO NZX shares?

One of the best performers on the local share market this year has been the XERO FPO NZX (ASX: XRO) share price.

Year-to-date the cloud-based accounting software provider’s shares have gained a massive 44%.

Is it too late to invest?

I don’t believe it is too late to invest if you are willing to make a patient buy and hold investment.

After all, it is hard not to be impressed at the rapid rate Xero has grown its subscribers. Earlier this year the company surpassed one million subscribers globally and this growth shows no signs of slowing.

According to the Fairfax media, the company has now surpassed a quarter of a million subscribers in New Zealand and is nearing half a million subscribers in Australia.

I believe this demonstrates just how big the global opportunity is. Whilst these two markets are undoubtedly valuable, they pale in comparison to the U.S. and European markets.

If the company is able to penetrate these markets successfully, then the sky is the limit in my opinion.

Though it isn’t going to be easy and there is a lot of hard work ahead. The U.S. market in particular is fiercely competitive and the adoption of cloud-based software by its accounting industry has been slower than other markets.

But Xero remains confident about its prospects in the country, telling The Australian that it has set itself a three-year target to completely change the category.

Overall, it is for this reason that I would put it up there with Altium Limited (ASX: ALU) and Nextdc Ltd (ASX: NXT) as one of the best tech shares on the ASX right now.

At this point in time, however, it isn't a dividend payer. So if you're looking for dividends then this quality share and its big yield could be perfect for you.

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Motley Fool contributor James Mickleboro owns shares of Nextdc Limited. The Motley Fool Australia owns shares of Altium and Xero. 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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