I think tech shares are some of the best shares to help you try to beat the market.
Why? Well firstly, any business that is new and growing is more likely to beat the market for at least a while compared to a blue chip that has already been around for decades.
But more importantly, additional technology software can be reproduced for almost no cost. A new Microsoft 365 subscription or a new Facebook account cost virtually nothing.
With that line of thinking, here are two exciting ASX tech shares that you could buy to try to beat the market:
Altium Limited (ASX: ALU)
Altium might be one of the best tech shares on the ASX. It provides electronic PCB design software that is essential for today's engineers to design the products, machines and vehicles of the future. It has a high-quality list of tenants including Tesla, Space X, Google, Apple, Amazon and Microsoft.
It's trying to achieve market leadership with its main service called Altium Designer, it's trying to reach 100,000 subscribers over the next five or so years. This would see Altium as the clear leader and give it an excellent economic moat. Reaching this will be a big part of Altium hitting US$500 million revenue by 2025.
With rising profit margins and potential acquisitions in the future, Altium has an exciting future. It also has a very good balance sheet with great cashflow. It's rare to find one of these businesses that just keep winning and winning.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is one of the most promising ASX tech shares. It's at a much earlier stage of its growth compared to Altium. It's a business that facilitates electronic donations to not-for-profits such as churches. People are generous each year, which means Pushpay can expect a certain amount of donations annually from which it can earn fees.
The company has recently reached profitability and cashflow breakeven status, so a lot of new revenue will boost the profit margins and the bottom line.
It recently acquired a church management system which improves Pushpay's offering and hopefully nicely increases its organic revenue.
Foolish takeaway
Both of these businesses are two of the most exciting on the ASX in my opinion. Pushpay could definitely be one to watch over the next few years if it manages to keep growing its profit margins and customer base.
