There are some wonderful tech shares on the ASX that may be worth thinking about.
Technology is changing the world in many different ways. It is changing how we shop, it’s changing how people can communicate and it’s changing how we research shares.
Some ASX tech shares have been sold off recently and are now cheaper:
Betashares Nasdaq 100 ETF (ASX: NDQ)
This is an exchange-traded fund (ETF) which invests in 100 of the biggest non-financial businesses listed on the NASDAQ, which is a stock exchange in North America.
Many of the world’s biggest tech companies are listed on the NASDAQ, so there’s blue chip tech exposure to businesses like: Apple, Microsoft, Amazon, Tesla, Alphabet, Facebook, Nvidia, PayPal and Intel.
Whilst it does give exposure to the ‘FAANG’ shares, including Netflix, there are a number of other tech names in the portfolio like Adobe, Broadcom, Qualcomm, Texas Instruments, Applied Materials, Advanced Micro Devices, Intuit, Micron Technology, ASML and Zoom.
There are also plenty of companies that aren’t classified as information technology as their ‘sector’, but they do use world-leading technology within the business including Costco, Starbucks, Booking Holdings, Intuitive Surgical, JD.com, MercadoLibre, Activision Blizzard, Baidu, Mondelez and Moderna.
The returns of the ETF have been consistently strong since inception in May 2015, returning a net of 21.25% per annum. Over the last three years, the return has been 25.7% per annum.
Those returns from the ASX tech share include the annual management fee of 0.48% per annum.
Kogan.com Ltd (ASX: KGN)
Kogan.com is an e-commerce business where a large number of products and services are sold. TVs, phones, appliances, drones, clothes, furniture and so on can be bought on the website. It also sells services like mobile plans, NBN internet, insurance and superannuation.
In the company’s FY21 half-year result, it reported that gross sales rose 97.4% to $638.2 million, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) went up 184.4% to $51.7 million and net profit after tax (NPAT) jumped 164.2% to $23.6 million.
The ASX tech share said that it’s going to keep investing in its logistics network, speed of delivery, range expansion and improved competition on the platform to drive even better experiences for its customers.
Kogan.com founder and CEO Ruslan Kogan said:
The rapidly expanding network effect at Kogan.com means that as we attract more customers, we’re able to make the products and services they need even more affordable and accessible. I love hearing feedback from customers that have shopped with us many times over our 15 year journey about how the experience keeps getting better and better – this is what makes our team jump out of bed in the morning. The investments we’re making into Kogan.com today are to ensure that we can continue to delight millions of customers in more and more ways.
The company continues to expand its total addressable market by adding new product lines and the Kogan Marketplace keeps increasing its number of sellers. The Mighty Ape acquisition also increases the potential growth for Kogan.com.
January 2021 saw gross sales growth of 45% year on year, gross profit went up 102% and adjusted EBITDA rose 90%.
The Kogan.com share price is valued at 19x FY23’s estimated earnings according to Commsec.
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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Kogan.com ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.