WiseTech Global Ltd (ASX: WTC) shares have been an excellent investment over the long term.
Look at the chart below. The ASX growth stock has risen close to 2,800% since listing in April 2016.
However, as we can also see on the chart, there has been a significant sell-off since 15 October 2024. It plunged more than 10% after the media reported governance issues relating to founder Richard White.
I think it shows there can be a danger of highly-priced ASX growth shares being sold off when something goes wrong. It could be wise to diversify one's exposure to a few different ASX growth stocks.
I still believe ASX tech shares can be great ASX growth stocks. I really like the two ASX shares below, and I rate them as top buys for growth and diversification.
Bailador Technology Investments Ltd (ASX: BTI)
Bailador is an investment business that invests in smaller, private, fast-growing technology companies. The ASX growth stock is looking for businesses with global addressable markets, international revenue, and good unit economics.
In the last several months, it has made a number of new investments, including digital healthcare platform Updoc, financial advice and investment management software business DASH Technology, and gym and boutique fitness studio software business Hapana.
In its annual general meeting (AGM) presentation, the company noted that its portfolio company revenue growth was 47%, with 91% of revenue being recurring, and the portfolio had a gross profit margin of around 67%.
I think Bailador's portfolio of companies has a strong growth outlook, and I believe they can outperform the S&P/ASX 200 Index (ASX: XJO) over the next five years.
It seems to be trading at a good value – the Bailador share price is trading at a discount of 24% to the post-tax net tangible assets (NTA) per share as at September 2024.
Airtasker Ltd (ASX: ART)
Airtasker describes itself as Australia's leading online marketplace for local services, connecting people and businesses who need work today with people who want to work.
It offers an extremely broad range of services that can be advertised on the platform, including accounting, admin, furniture assembly, delivery, car work, tradesperson work, computers & IT, pet care, hairdressers, and so many more.
The ASX growth stock has a large presence in Australia, and it's growing in the UK and the US. Despite the difficult broader economic conditions, it continues to expand at a good pace.
In FY24, Airtasker marketplaces revenue rose 9.8% to $38.1 million, with UK revenue increasing by 41.1% to $1.3 million and US revenue growing by 73.7% to $0.1 million. These are still small numbers, but if they keep rising rapidly, they could grow into meaningful numbers.
Pleasingly, the business is just reaching profitability. In FY24, its free cash flow was positive and grew by $8.9 million to $1.2 million, while the operating profit (EBITDA) grew by $7.8 million to $0.2 million.
With a gross profit margin of well over 90%, the ASX growth share just needs to keep growing revenue at a pleasing pace for the profit to rise strongly, in my view.
I think the company's strategy of media partnerships can help accelerate its growth. The UK partnership with Channel 4 helped UK revenue rise 76.3% in the fourth quarter of FY24 to $0.5 million. This is promising for FY25 and beyond.
I think this ASX growth stock still has plenty of potential.
