One of my favourite areas of the market to invest right now is the information technology sector.
But with so many quality shares to choose from it can be hard to decide which ones to buy.
To help narrow things down I thought I would look at three popular tech shares to see if they are in the buy zone. Here's what I found:
Appen Ltd (ASX: APX)
Appen is a global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. In February it released its full year results and blew the market away with an incredible 153% increase in underlying EBITDA to $71.3 million. This strong result was driven by the combination of increasing demand for quality training data from the accelerating AI market and the highly successful acquisition of Leapforce. The good news is that with the AI market set to continue growing at a rapid rate over the next decade, Appen appears to be well-positioned to continue its remarkable run for some time to come. In addition to this, the recently announced acquisition of the Figure Eight business for upwards of US$300 million is likely to be a major boost to its growth from FY 2020 onwards. I think Appen's shares are still a buy if you're prepared to hold them for the long-term.
Audinate (ASX: AD8)
Audinate is a provider of digital Audio-Visual networking technologies. Its shares have been strong performers this year due to the company's impressive revenue growth which has been driven by the success of its award-winning Dante audio over IP networking solution. Due to strong demand across the world in the professional live sound, commercial installation, broadcast, public address, and recording industries, Audinate reported a 60% increase in half year revenue to $14.2 million in the first half of FY 2019. Whilst I'm a big fan of the company, I feel its shares are starting to look a touch expensive now. Because of this, I think investors should hold out for a better entry point.
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a provider of software products and services to the wealth management and funds administration industries. It has caught the eye of investors this year after the release of yet another impressive result. In the first half of FY 2019 Bravura posted a 24% increase in half year revenue to $127.4 million and a 28% lift in EBITDA to $23.8 million. The Sonata wealth management product was once again a key driver of the company's growth. And thanks to the quality of the platform and its sizeable market opportunity, I believe this can continue to be the case for many years to come. Overall, I believe this could make Bravura a great long-term option for growth investors.
