3 tech stars you might never want to sell

XERO FPO NZX (ASX:XRO) is one of three tech stars which I believe make great long-term investments today.

| More on:
a woman

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

Although the Nasdaq may be home to some of the most well-known and highly-regarded tech companies in world, the Australian stock exchange is certainly no slouch.

I believe it is home to some innovative and exciting tech companies with incredible potential. Some have such strong long-term earnings growth prospects that you might want to buy and hold them for decades.

Here are three in particular which I believe could be excellent buy and hold investments:

Freelancer Ltd (ASX: FLN)

As the owner and operator of the world's largest outsourcing marketplace I believe Freelancer is in a strong position for long-term growth. At present the company has over 20 million registered users and reported 1.4 million job listings in the first half of FY 2016 to help gross payment volume increase by 453% during the six months. One thing in particular that I like about Freelancer is the value it brings for users. It has been estimated that a typical $2,000 contract job for a small business could cost as little as $200 through Freelancer's network

Webjet Limited (ASX: WEB)

As more and more consumers make their travel bookings online, I believe Webjet and its numerous online travel agency brands look set to profit greatly. Although there has been a spot of weakness in the industry of late, in the medium term I expect things will return to normal. At just 24x estimated FY 2017's earnings and with analysts expecting profit growth in excess of 34% per annum through to FY 2019 according to CommSec, I believe now would be a great time to make a buy and hold investment

XERO FPO NZX (ASX: XRO)

For the first half of FY 2017 Xero reported a 48% increase in operating revenue over the prior corresponding period thanks in part to a stunning 45% increase in subscriber numbers to 862,000. At present over two-thirds of its subscribers come from the Australian and New Zealand market, but I see huge potential for its accounting software in the North American market. Currently just 13% of its subscribers are from North America, but considering its population size I believe it will one day become its biggest segment.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »