One area of the market that I continue to be particularly positive on is the tech sector.
At this side of the market there are a good number of shares that have been smashing the market over the last few years. The good news is that I don't believe this outperformance is going to end any time soon.
Here's why I think these ASX tech shares could be long term market-beaters:
Appen Ltd (ASX: APX)
Over the last few years Appen has cemented its position as the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). It has a global crowd of more than 1 million skilled contractors and the industry's most advanced AI-assisted data annotation platform.
This allows Appen to provide solutions to the leaders in technology, automotive, financial services, retail, manufacturing, and governments worldwide. Its customers include the likes of Amazon, Adobe, and Microsoft. The good news is that spending on machine learning and AI expected is expected to increase strongly over the next decade. I believe this puts Appen is a position to continue growing its bottom line at a rapid rate for many years to come. If this proves to be the case, I expect the Appen share price to climb notably higher over the 2020s.
Pushpay Holdings Ltd (ASX: PPH)
Another tech share to buy is Pushpay. It is a donor management system provider with a focus on the faith sector. Its innovative solutions simplify engagement, payments, and administration, which allows its users to increase participation and build stronger relationships with their communities. In FY 2020 Pushpay delivered further strong profit growth and provided very bullish guidance for the year ahead. It expects its operating earnings to double in FY 2021 despite the coronavirus pandemic.
After which, management is aiming to capture a 50% share of the medium and large church segments. It estimates this to be worth US$1 billion in annual revenue at present, which is almost eight times more than the operating revenue of US$127.5 million it achieved in FY 2020. Due to the quality of its offering, I believe it has a very good chance of achieving this goal.
