There certainly are a large number of growth shares for investors to choose from on the ASX.
Three which I think are among the best the local market has on offer are named below. Here's why I would buy them:
Appen Ltd (ASX: APX)
The first growth share I would buy is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Appen prepares the data for the models of some of the world's biggest tech companies such as Microsoft and Facebook. It has also previously worked with Apple on its Siri virtual assistant. I feel this is a testament to the quality of its service, which bodes well for the future. Especially given the growing importance of AI and machine learning for big businesses and the billions and billions of dollars being invested in the space.
NEXTDC Ltd (ASX: NXT)
Another top option for growth investors to consider is this innovative data centre-as-a-service provider. NEXTDC has been experiencing increasing demand for its centres in recent years thanks to the rise of cloud computing. So much so, the company's customer numbers have grown at a compound annual growth rate (CAGR) of 21% over the last 4 years. Importantly, at the same time, its customers are using more and more services. Over the same period, its interconnections have grown at a CAGR of 31%. This has been driven by the increasing use of hybrid cloud and connectivity inside and outside its data centres due to customers expanding their ecosystems. Given that the shift to the cloud is continuing to accelerate, I believe NEXTDC is well-positioned to deliver strong earnings growth over the next decade.
Xero Limited (ASX: XRO)
A final ASX growth share I would buy is Xero. The leading global provider of cloud-based business and accounting software is one of my favourite growth shares. This is due to its very positive long term outlook which is being underpinned by the shift to cloud-based solutions. This is supporting strong demand for its high quality and sticky platform, which is generating growing recurring revenues. Pleasingly, although the pandemic has hit small and medium sized businesses hard, it hasn't stopped Xero from increasing its subscriber numbers. Since the start of April and through to 31 July, Xero recorded 96,000 net subscriber additions to its platform. This lifted its subscribers to a total of 2.38 million at the end of the period.
