Why Zip (ASX:Z1P) and this ASX tech share could be buys

Here are two quality options in the tech sector…

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Are you interested in gaining exposure to the tech sector? If you are, then you may want to check out the two ASX shares listed below.

Here’s what you need to know about these tech shares:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first tech share to look at is actually an ETF that allows you to invest in a number of tech companies. The BetaShares Global Cybersecurity ETF gives investors exposure to the leading companies in the growing cybersecurity sector.

Included in the fund are global cybersecurity players Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk. These companies appear well-placed for growth over the 2020s due to increasing demand for cybersecurity services.

In respect to Palo Alto Networks, it is the global leader in cybersecurity solutions. Palo Alto Networks’ services include advanced firewalls and cloud-based products that extend firewalls to cover other aspects of security. It has over 85,000 customers across over 150 countries. From these customers it generated a 25% increase in revenue to US$4.3 billion in FY 2021.

Zip Co Ltd (ASX: Z1P)

Another ASX share to look at is Zip. It is of course one of the world’s leading buy now pay later (BNPL) providers with operations on several continents.

Zip has been growing at a strong rate over the last few years thanks to the increasing popularity of the payment method and its international expansion. This strong form has continued in FY 2022, with Zip revealing record quarterly revenue of $136.8 million during the first quarter. This was up 89% year on year and 8% quarter on quarter.

The good news is the company still has a very long runway for growth over the next decade thanks to its massive global market opportunity. There has also been speculation that it could be a takeover target if the BNPL industry consolidates.

The team at Morgans is positive on Zip’s outlook and believes its shares are very cheap in comparison to peers. The broker currently has an add rating and $8.56 price target on its shares.

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

Before you consider Zip, 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 Zip 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 BETA CYBER ETF UNITS and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. 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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