As inflation and rising interest rate fears grip the markets, technology shares have shed a lot of their valuation in the past few weeks.
In fact, since 7 September, the S&P/ASX All Technology Index (ASX: XTX) has plunged a painful 8.3%.
But not all tech shares are the same.
There are some businesses that are post-COVID reopening beneficiaries and others that are growing so fast it matters little what the rest of the market is doing.
Two experts this week picked out a pair of ASX shares that have exactly these tailwinds.
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Waving your cards on Freedom Day
Shares for fintech Tyro Payments Ltd (ASX: TYR) have sunk 12% since 24 September.
But that might just make for a buying opportunity. As Burman Invest chief investment officer Julia Lee suggested, the business has a rosy outlook.
"Tyro has seen not only strong growth year-on-year, but the growth is likely ahead of it in the short term because of that reopening trade," she told Switzer TV Investing.
"So I think from a short term, as well as a medium and long term basis, that it will do well."
Tyro's biggest business is providing card payment terminals to retailers, especially in the restaurant and takeaway sector.
Lee added that putting all tech stocks into the same basket is counterproductive, as each company has different real-world forces impacting them.
"With that reopening trade, you'd expect things like travel and hospitality to still do well despite that tech element being in there."
Shaw and Partners senior investment adviser Adam Dawes said that the pandemic has shifted Australians well and truly onto card payments.
"Cashless society is continuing to happen now. I think I've had $20 in my wallet for the last 3 months and never had to spend it."
The ASX tech stock that's doubled this year
Yes, ASX tech shares are struggling. But try telling that to Aussie Broadband Ltd (ASX: ABB) shareholders.
After starting the year at around $2, the stock price is up a whopping 140%. Aussie Broadbank shares were going for $4.81 at close on Tuesday afternoon.
But Dawes reckons there's more to come from the internet service provider.
"I really like the stock. We've got a $5.50 price target on it… I think there's a little bit of room to move on the upside on that one."
With a market capitalisation of just above $1 billion, Aussie Broadband is still small fish compared to giant telcos like Telstra Corporation Ltd (ASX: TLS) and Optus.
But that's its advantage, as far as Dawes is concerned.
"It's taking a lot of market share from Telstra," he said.
"Telstra is so big, so cumbersome, it can't be nimble. Aussie Broadband is very, very nimble."
Aussie last month raised $114 million from institutional investors then another $20 million from its retail shareholders.
Dawes expects this cash pool to go to good use.
"They are going to make some more acquisitions which will be EPS [earnings per share] accretive," he said.
"As well, we expect them to announce some other deals with the NBN and some fibre stuff."
