2 rapidly growing ASX tech shares named as buys

Check out these growing tech shares…

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A man activates an arrow shooting up into a cloud sign on his phone, indicating share price movement in ASX tech shares

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If you have room for a tech share or two in your portfolio, then you might want to consider the two listed below.

Here’s why these rapidly growing ASX tech shares are highly rated:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is this San Francisco-based technology company. It is the app maker behind the hugely popular family-focused Life360 mobile app, which is used by 28 million monthly active users globally.

It was a surprisingly strong performer in FY 2020 despite facing headwinds from lockdowns and lower mobility. For the 12 months ended 31 December 2020, Life360 reported a 39% increase in normalised revenue to US$81.6 million.

The good news is that its strong form is expected to continue in FY 2021. Life36o recently revealed that it expects its annualised monthly revenue to be at the high end of its guidance of US$110 million to US$120 million. The high end represents a 34% year on year increase.

In addition to this, the company announced the creation of a Family Advisory Council that will bring together well-known celebrities and influencers. The Council will help shape the company’s product and marketing strategy.

One broker that is very positive on the company is Morgan Stanley. It currently has an overweight rating and $8.60 price target. Morgan Stanley has been impressed with Life360’s user base growth and feels that the market under appreciates this.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX tech share to look at is PointsBet. It is a growing sports wagering operator and iGaming provider offering innovative sports and racing betting products and services in the ANZ and US markets.

The latter is the market which is expected to be the key driver of its growth in the future. Thanks to regulation changes and the company’s partnerships, like the one it has with NBCUniversal, PointsBet appears well-placed to capture market share and grow its sales over the next decade. The agreement with NBCUniversal puts the PointsBet brand in front of 184 million of the sports broadcaster’s viewers.

Analysts at Goldman Sachs are bullish on PointsBet. The broker currently has a buy rating and $17.20 price target on PointsBet’s shares. It notes that PointsBet is well-positioned in a US market forecast to be worth US$53 billion at maturity.

Should you invest $1,000 in PointsBet right now?

Before you consider PointsBet, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and PointsBet wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Life360, Inc. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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