ASX 200 tech shares have been smashed in 2020 as coronavirus concerns have triggered a bear market. The global shutdown has disrupted supply chains and plunged some sectors into emergency mode. From hospitality to travel, Aussie businesses are feeling the current market pain.
While the S&P/ASX 200 Index (ASX: XJO) is down 24.19% in 2020, there are still buying opportunities. Here are 2 ASX 200 tech shares that I think can beat the bear market in 2020.
2 market-beating ASX 200 tech shares
The first company to watch right now is Xero Limited (ASX: XRO). Xero is a software business specialising in small and medium business accounting.
While many Aussie businesses are struggling, accounting is a key function. That means even when times are tough, accounting software is a necessary expenditure. That's good news for Xero's earnings, but the ASX 200 tech share is still down 17.93% this year (at the time of writing).
That could mean that now is the time to buy Xero shares. The group recently landed its biggest ever client and I think recurring revenue could be key in the current bear market.
The other ASX 200 tech share on my radar is Nextdc Ltd (ASX: NXT). But at the time of writing, Nextdc shares are up 39.82% in 2020, so why is it on my buy list?
Despite the gains, I still see huge upside potential for Nextdc. The group owns and operates data centres around Australia and has big expansion plans on the cards. A $672 million capital raise has strengthened Nextdc's balance sheet and it looks to be in a good place.
If anything, coronavirus could have some positives for Nextdc. I would expect more companies to invest in remote working capabilities and data storage in the wake of the pandemic.
Foolish takeaway
I like both of these ASX 200 tech shares right now. I think both shares could outperform in the current bear market and still offer long-term growth. That's a pretty good combination if you can find it, given the current market conditions.
