Xero Limited (ASX: XRO) has long been a favourite ASX tech share of many investors. This online accounting software company has spent the past few years recording some impressive moves on the ASX boards. Enough even to invite Xero into the exclusive old WAAAX club of ASX growth shares that couldn't seem to stop giving investors eye-watering returns a few years ago.
For some context, the Xero share price rose around 700% between April 2017 and April 2021.
But the past year has been more muted. Over the last 12 months. Xero shares have gone backwards by a painful 25%. In 2022 alone, the company has lost more than 30% of its value.
So with this sudden reversal of fortune for Xero, many investors might be wondering if this ASX tech share's best days are behind it.
Well, one investor who still reckons Xero's best days lie in front of the company is Raaz Bhuyan of WaveStone Capital.
ASX expert names Xero as a buy today
Mr Bhuyan recently shared his views on Xero during a Livewire Markets podcast. Here's why he still likes Xero shares going forward:
But the only true technology business that we think is good in Australia is Xero… they have been quite successful in expanding overseas, and actually making a meal of it. So if you think about the businesses in Australia and New Zealand, they took on the incumbent, MYOB, and grew a business here, and they've gone to the UK and taken on Sage and done quite well.
We think that that's quite good of Steve Vamos and his team, to have done all of that, and now they're going into North America. So it feels like if the business is even half as successful in the US, they will do an incredible job. And it's going to be one of the big tech companies I think, out of Australia…
So that's a pretty emphatic endorsement of Xero's future potential from an ASX investing expert.
Xero has indeed been ramping up its international expansion plans. The company's last earnings report, which was delivered back in November last year, showed revenue growth across all geographic areas. United Kingdom revenues were up 24%, with strong growth coming from Xero's 'rest of world' breakdown, which includes South Africa and Singapore.
If Mr Bhuyan is right in his assessments, we could well continue to see growing numbers coming out of Xero for a while yet. But, of course, only time will tell.
At the current Xero share price, this ASX tech share has a market capitalisation of $15.06 billion.
