One small positive from the recent market turmoil is that it has dragged some quality shares down to very attractive levels.
Two ASX tech shares which I think are trading at levels that could lead to them generating strong returns for investors over the next decade are listed below. Here's why I like them:
Appen Ltd (ASX: APX)
The Appen share price is currently trading 26% lower than its 52-week high. This means the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence is trading at approximately 37x estimated FY 2021 earnings. I think this is a buying opportunity for investors that are prepared to make a long-term investment.
This is because business and government investment on machine learning and artificial intelligence is expected to grow significantly over the next decade. I expect this to lead to growing demand for its services. Especially given its history of working with some of the biggest tech companies in the world and its strong position in the government sector through its Figure Eight business.
Nearmap Ltd (ASX: NEA)
Another share that has fallen heavily from its 52-week high is this leading aerial imagery technology and location data company. As of Friday's close, the Nearmap share price was down 28% from its 52-week high. I feel this has left its shares trading at an attractive level for long-term focused investors.
Management believes the company is well-placed for growth thanks to its recent capital raising and new growth initiatives. So much so, over the long term it is targeting annualised contract value (ACV) growth of 20% to 40% per annum, with underlying churn of less than 10%. Thanks to the quality of its offering, particularly its latest AI product, and its expansion opportunities, I believe it is well-placed to achieve this.
