ASX tech shares have gone through a lot of volatility this year. We're not even a quarter of the way through 2022 yet. After a sizeable decline, are some leading tech options now worth contemplating?
Over the long-term, the tech sector may have delivered some high-performers, but it has also seen some tough drops in this calendar year.
Here are two ASX tech shares to consider:
Betashares Nasdaq 100 ETF (ASX: NDQ)
The NDQ ETF has seen a decline of 17% since the start of 2022. However, it has risen by almost 150% over the last five years despite the setback this year.
One of the benefits of owning this investment is that in one trade, investors can get access to companies that are changing the way we live, according to BetaShares. The named examples are Apple, Amazon and Google (Alphabet).
But as the name of the ETF suggests, there are actually 100 businesses in the portfolio.
There are numerous global technology names in the holdings such as Microsoft, Nvidia, Tesla, Meta Platforms (Facebook), PayPal, Adobe and Netflix.
But, it's not just a tech-only ETF. There are plenty of other businesses in different sectors like Costco, PepsiCo, Moderna, Intuitive Surgical, Starbucks and Mondelez.
The annual management cost of the Betashares Nasdaq 100 ETF is 0.48%.
Xero Limited (ASX: XRO)
Xero is one of the world leaders in the cloud accounting software space. However, the Xero share price has fallen by around 32% since the start of 2022. But, it's up 477% over the last five years.
The ASX tech share now has more than 3 million subscribers. This number continues to grow at a double-digit pace. For the half-year results to 30 September 2021, Xero reported that its total subscribers grew by 23% to 3 million.
It is seeing growth in many countries, including Australia, New Zealand, the UK, the USA, Canada, South Africa, and Singapore.
The growth in subscribers is helping the company's operating revenue, which increased 23% to $505.7 million in the HY22 result. The average revenue per user (ARPU) grew 5% to $31.32, while the annualised monthly recurring revenue jumped 29% to $1.13 billion.
Xero's gross profit margin remains high and continues to grow. It increased another 1.4 percentage points to 87.1%.
The ASX tech share says that small businesses around the world increasingly recognise the critical importance of digital tools to help them adapt and succeed in a changing operating environment.
Management said that there are multiple drivers for cloud-based software adoption, including "digitisation of tax compliance, innovation of financial services and an imperative for small businesses to prepare for the future." That's why Xero thinks it has exciting opportunities ahead.
It's going to keep re-investing the cash generated to drive long-term shareholder value, subject to investment criteria and market conditions.
