Motley Fool Australia

3 buy and hold tech investments for 2018

Data technology share investing

Due to the way that technology is changing both lives and business, I think Australia’s tech sector is one of the best areas of the market to invest in with a long-term view.

Three top tech shares with global ambitions that I would invest in today are listed below. Here’s why I think they are worth a closer look:

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology company’s shares may be close to their all-time high, but I still believe they would be a great buy and hold investment options due largely to its fast-growing digital segment. I have been very impressed at the way the segment has grown its daily average users and the average revenue per user at a strong rate this year. I expect this to continue in FY 2018 thanks to the acquisition of Plarium for US$500 million. This acquisition will see the popular Vikings: War of Clans mobile game added to the company’s portfolio.

Altium Limited (ASX: ALU)

Due to the rise of the Internet of Things, I believe Altium’s printed circuit board (PCB) design software is likely to experience increasingly strong demand. This is because the majority of connected devices require a PCB inside them in order to function. Management recently reaffirmed its FY 2020 guidance of revenue of at least US$200 million and an EBITDA margin of 35%. This compares to the US$111 million of revenue and 30% EBITDA margin it achieved in FY 2017.

Livetiles Ltd (ASX: LVT)

LiveTiles is a digital workplace platform provider which has been growing at an impressively strong rate. The company recently advised that its annualised subscription revenue (ASR) had reached the $5 million milestone as of 30 September 2017. This was a massive 252% increase year-on-year. Pleasingly, this strong growth is likely to continue in FY 2018 thanks to the expansion of its enterprise sales team and investment in global marketing events.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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.

*Returns as of June 30th

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium. 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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