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.
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.