Why Xero and these ASX tech shares just hit record highs

Xero Limited (ASX:XRO) and these ASX tech shares have just hit record highs. Here's why they are flying high in 2020…

Although the All Ordinaries (ASX: XAO) index is still some way off its highs for the year, this isn't the case for all constituents of the index.

In fact, three popular ASX tech shares have just hit record highs. Here's why they are on a high right now:

The Afterpay Ltd (ASX: APT) share price stormed to a new record high of $62.33 on Wednesday. This latest gain was driven by the payment company's update on its UK business. That update reveals that Afterpay's UK-based Clearpay business has reached 1 million customers after 12 months in the country. Also supporting its shares this year has been stellar customer and sales growth in the United States and the arrival of Tencent Holdings on its share registry. The latter could be the key to a future launch into the Asia market.

The Pushpay Holdings Ltd (ASX: PPH) share price continued its positive run and hit a new record high of $8.97 yesterday. Investors have been fighting to buy the donor management platform provider's shares following the release of a very strong full year result in May and a guidance upgrade this month. The latter came just six weeks after first issuing its guidance. Pushpay now expects EBITDA of US$50 million to US$54 million in FY 2021. This compares to its previous guidance of US$48 million to US$53 million and will be double FY 2020's operating earnings.

The Xero Limited (ASX: XRO) share price reached a record high of $91.94 on Wednesday. Investors have been buying the business and accounting software provider's shares this year thanks to its strong FY 2020 result. During the 12 months, Xero delivered a 30% increase in operating revenue to NZ$718.2 million and a 29% jump in annualised monthly recurring revenue to NZ$820.6 million. This was driven by increases in both its average revenue per user and total subscriber numbers. The latter rose 26% to 2.285 million thanks to the addition of 467,000 net subscribers during the year. Judging by its strong share price form since then, investors appear confident there will be more of the same over the coming years. And I would have to agree.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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