2 ASX tech shares to buy for dirt cheap right now: experts

Pssst, according to these experts, some tech shares have been oversold. Here’s a pair of them.

| More on:
man and woman talking with each other whilst using a MacBook

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

By now you likely know that the past few months have been hell for technology stocks.

The S&P/ASX All Technology Index (ASX: XTX) is more than 25% lower than where it started this year, and a whopping 30% down since November.

But some argue that tech businesses with sound financials and reliable earnings streams will inevitably recover those losses — and more.

This is why it was interesting to note 2 ASX tech shares nominated as buys by a pair of experts this week:

‘A significant advance’ for marketplace platform

Online real estate classifieds site Domain Holdings Australia Ltd (ASX: DHG) has suffered brutally, even more so than the All Tech index. 

Its shares are down more than 40% for the year. 

Yikes.

Fat Prophets chief Angus Geddes, however, thinks a positive catalyst is in the works.

“Domain’s pending acquisition of real estate campaign management platform Realbase will accelerate its agency solutions strategy and increase market penetration to about 50% of all Australian transactions.”

Geddes told The Bull the transaction makes sense “strategically and financially”, and gives Domain an opportunity to sell “higher value solutions”. 

“The deal is a significant advance in the evolution of the Domain marketplace strategy.”

According to CMC Markets, 7 out of 13 analysts rate Domain shares as a strong buy.

Revenue continues to climb

Software maker ​​Xero Limited (ASX: XRO) has also been hammered harder than the typical tech stock.

The Xero share price has lost more than 35% so far in 2022.

Medallion Financial Group analyst Jean Claude Perrottet reckons the sell-off has been overdone.

“Xero has generated strong growth since 2006 and now has more than 3 million subscribers,” he said.

“The company reported operating revenue of NZ$505.7 million in its first half result, an increase of 23% on the prior corresponding period.”

Burman Invest chief investment officer Julia Lee said last month that Xero shares would look “very interesting” once they dipped below the $100 mark.

Well, it closed Wednesday at $94.55.

“In our view, the share price offers value as it was recently trading well below its highs,” said Perrottet.

Xero shares are slightly more polarising among professional investors, with 6 out of 11 analysts surveyed on CMC Markets rating it as a strong buy while two warn that it’s a strong sell.

Motley Fool contributor Tony Yoo owns Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Rocket powering up and symbolising a rising share price.
Technology Shares

Why is the Damstra share price soaring 26% on Thursday?

Damstra shares are rocketing higher on Thursday...

Read more »

A man in an office at his desk holds his hands up in the air in frustration while looking at the falling EML Payments share price on his computer screen
Technology Shares

Why is the EML Payments share price sinking 9% today?

The stock handed back most of its Wednesday gains this morning.

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how the ASX 200 works
Technology Shares

Janison share price jumps 13% on FY22 trading update

Janison's shares are zooming higher on Thursday...

Read more »

People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22
Technology Shares

Why was FY22 a rollercoaster period for the Novonix share price?

The battery technology stock recorded a high of $12.47 and a low of $2.07 in FY22.

Read more »

A group of people in suits watch as a man puts his hand up to take the opportunity.
Technology Shares

What percentage of Altium shares are owned by insiders?

Tech shares have strengthened on Wednesday.

Read more »

A paper plane crashed in sand.
Technology Shares

Why did the Nearmap share price tumble 17% in June?

The aerial mapping company is facing international competition and legal proceedings in the United States.

Read more »

A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.
Technology Shares

Why is the Tyro Payments share price blasting 10% higher?

Tyro Payments is outperforming alongside many of its tech peers today.

Read more »

A woman wearing a virtual reality headset jumps high in her living room.
Technology Shares

Why are ASX 200 tech shares sprinting higher today?

Investors have regained confidence in the tech trade again, for now anyway.

Read more »