The S&P/ASX 200 Index (ASX: XJO) came under pressure today and fell 2.45%.
One of the worst performing areas of the market was the tech sector. The S&P/ASX 200 Information Technology index fell almost 5%. This means the index is now trading 28% below its 52-week high.
While this is disappointing, I think this weakness has created a buying opportunity for long-term focused investors.
Here are three tech shares I would buy:
Afterpay Ltd (ASX: APT)
I think this pullback in the Afterpay share price could be an opportunity for investors that want exposure to the rapidly growing buy now pay later market. I firmly believe it is the highest quality option in the industry and capable of generating very strong returns for investors over the next decade. This is thanks to its massive global market opportunity and the growing popularity of its platform with retailers and consumers.
Altium Limited (ASX: ALU)
The Altium share price has given back some of its strong recent gains and tumbled lower today. I see this as an opportunity for investors to pick up shares in an outstanding company at a more attractive price. I believe Altium is one of the best buy and hold options on the ASX due to the Internet of Things (IoT) market. This market is expected to explode over the next decade and should drive increasing demand for its award-winning Altium Designer software. Combined with its other growing business, the future looks very bright for Altium.
Xero Limited (ASX: XRO)
Another tech share which was caught up in the selling on Tuesday is Xero. It is a cloud-based business and accounting software provider challenging Quickbooks for global dominance. I'm a big fan of the company due to its intuitive software and its significant market opportunity. Xero's platform allows users to automate everyday business tasks, get up-to-date financials and file payruns with the tax office in a matter of clicks. I believe this and the stickiness of the product will help it grow its market share materially over the next decade. And with less than 20% of the global (English-speaking) accounting market estimated to be using cloud-based products, it has a significant runway for growth.
