Prior to today, the S&P ASX All Technology index was down 15% since the start of the year.
While this is very disappointing, it may have created a buying opportunity for long term focused investors.
Two ASX tech shares that could be in the buy zone now are listed below. Here's what you need to know:
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Altium Limited (ASX: ALU)
This leading electronic design software provider could be a top option in the tech sector. Altium is the company behind the Altium Designer and Altium 365 platforms, the NEXUS design collaboration platform, and the Octopart electronic parts search engine.
These platforms are used by some of the biggest businesses and organisations in the world. This includes giants such as Boeing, Microsoft, NASA, and Tesla.
Over the coming years, Altium is aiming to dominate the electronic design market and believes its cloud-based Altium 365 platform is key to achieving this. It is targeting 100,000 subscribers and revenue of US$500 million by 2026. If it does deliver on this target, it should be supportive of strong earnings growth over the 2020s.
Jefferies is positive on Altium and currently has a buy rating and $48.83 price target on its shares.
Life360 Inc (ASX: 360)
Another ASX tech share that could be a buy after recent market weakness is Life360. It is the technology company behind the popular Life360 mobile app for families, which boasts over 30 million active users.
From these users, the company is generating very strong recurring revenue. For example, excluding acquisitions, during the third quarter of FY 2021, the company delivered a 48% year on year increase in Annualised Monthly Revenue (AMR) to US$120.1 million.
Looking ahead, management sees significant opportunities to monetise its massive user base through cross-selling and upselling. This will be supported by recent acquisitions of items tracking company Tile and wearables company Jiobit. The latter will allow Life360 to tap into two fast growing markets: the multi-billion pet supplies and services and elder care markets.
The team at Bell Potter is very positive on Life360. It currently has a buy rating and $15.00 price target on its shares.
