3 ASX tech shares I would buy today

Although October’s selloff was a big disappointment for shareholders of many of Australia’s biggest and best tech companies, I believe it is a buying opportunity for non-shareholders.

Three tech shares that I think are worth considering are listed below:

Appen Ltd (ASX: APX)

Appen is a global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Its shares have been on a terrible run of late due to the tech selloff. While I’m not convinced that the volatility is over just yet, I do see significant value in its shares at these levels. Especially for investors that are prepared to hold onto them for the long term. Appen’s shares are currently trading at under 27x estimated FY 2019 earnings, which I think offers a compelling risk/reward.

REA Group Limited (ASX: REA)

Recent weakness in the housing market appears to have led to this property listings giant’s shares falling notably from their 52-week high. I think that this sharp decline could be a buying opportunity for investors that are prepared to make a buy and hold investment. This is because I still believe REA Group can continue its solid growth over the coming years thanks to its depth penetration, international exposure, strong pricing power, and the launch of new products.

Xero Limited (ASX: XRO)

Another tech share that I think could be in the buy zone is Xero. The accounting software company has been growing at an impressive rate in the UK and ANZ markets over the last year or two. One key reason for this is the stickiness of Xero’s product which is evident in its high retention rate. If the company can replicate this success in the massive U.S. market then it could continue its strong growth for the next decade at least. And while it will not be easy, I believe the quality of the product gives it a great chance of succeeding. Xero’s latest results are due imminently, though. So it may be best to wait for them before hitting the buy button.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd and Xero. The Motley Fool Australia has recommended REA Group Limited. 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 Scott Phillips.

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