I think that one of the most exciting areas to invest in at the moment is the tech sector.
In this part of the market there are a large number of companies with the potential to grow strongly over the next decade and generate outsized returns for shareholders.
Three ASX tech shares that I would buy in July are listed below. Here's why I like them:
Afterpay Ltd (ASX: APT)
I think this payments company could be a great long term option. In FY 2020, Afterpay has continued to smash expectations thanks to the increasing popularity of its buy now pay later platform with both consumers and retailers. The uptake of its platform has been especially strong with younger demographics, which are turning away from credit cards and looking for better ways to budget. I expect this trend to continue for the foreseeable future and be boosted by further geographic expansion in the coming years. This could make Afterpay shares long term market beaters.
Nearmap Ltd (ASX: NEA)
Another tech share to consider buying is this aerial imagery technology and location data company. Thanks to the increasing demand for its services in both Australia and North America, Nearmap has been growing its sales at a very strong rate over the last few years. The good news is that I believe the company can continue this impressive growth for a long time to come thanks to its massive opportunity in a highly fragmented market, the launch of several exciting new products, and its potential expansion into new geographies.
Xero Limited (ASX: XRO)
A final tech share to consider buying is Xero. It is one of the world's leading cloud-based business and accounting software providers. Xero recently reported its FY 2020 results and revealed further impressive growth in sales and operating earnings. This was driven by strong customer growth and its sky high retention rate. I believe the latter demonstrates both the quality and stickiness of its platform. Another positive is its modest market share in North America. At present it has just 241,000 subscribers in the key market. This compares to 914,000 subscribers in a materially smaller ANZ market.
