The technology sector has once again been one of the best places to invest your money in 2019.
Since the start of the year the S&P/ASX 200 Info Tech index has provided an impressive return of 35%.
The good news is that I believe many of Australia's leading tech shares remain well-placed to generate further strong returns in 2020 and throughout the next decade. Three that I would buy are listed below:
Afterpay Ltd (ASX: APT)
I think this payments company could be a market beater again in 2020. Afterpay continues to smash expectations thanks to the increasing popularity of its buy now pay later platform with both consumers and retailers. The uptake of its platform has been especially strong with younger demographics, which are turning away from credit cards in their droves. And with the company potentially expanding its service into mainland Europe in the near future, I think Afterpay can continue to outperform expectations for years to come.
Altium Limited (ASX: ALU)
Another tech share that I think could outperform again in 2020 is Altium. It is the electronic design software company behind the hugely popular Altium Designer product. User numbers of this award-winning printed circuit board (PCBs) design software have been growing rapidly thanks to the Internet of Things (IoT) market. And with Statista forecasting the IoT market to be worth US$1.6 trillion in 2025, up from US$212 billion in 2019, I am confident Altium can achieve its aspirational revenue target of $500 million by FY 2025. This compares to its guidance of US$205 million to US$215 million in FY 2020.
Xero Limited (ASX: XRO)
A final tech share to consider buying for 2020 is Xero. It is the company behind the eponymous Xero online accounting software platform which has been growing at an explosive rate in recent years. In fact, in the first half of FY 2020 its subscriber numbers grew 30% over the prior corresponding period to 2.057 million. Interestingly, it took Xero over ten years to reach one million subscribers, but just two and a half years for the second million. Pleasingly, 2 million subscribers is still only scratching at the surface of its enormous global market opportunity. Given the quality and stickiness of its product, I'm confident there will be further strong growth over the next decade.
