One of the best performers on the local share market this year has been the XERO FPO NZX (ASX: XRO) share price.
Year-to-date the cloud-based accounting software provider's shares have gained a massive 44%.
Is it too late to invest?
I don't believe it is too late to invest if you are willing to make a patient buy and hold investment.
After all, it is hard not to be impressed at the rapid rate Xero has grown its subscribers. Earlier this year the company surpassed one million subscribers globally and this growth shows no signs of slowing.
According to the Fairfax media, the company has now surpassed a quarter of a million subscribers in New Zealand and is nearing half a million subscribers in Australia.
I believe this demonstrates just how big the global opportunity is. Whilst these two markets are undoubtedly valuable, they pale in comparison to the U.S. and European markets.
If the company is able to penetrate these markets successfully, then the sky is the limit in my opinion.
Though it isn't going to be easy and there is a lot of hard work ahead. The U.S. market in particular is fiercely competitive and the adoption of cloud-based software by its accounting industry has been slower than other markets.
But Xero remains confident about its prospects in the country, telling The Australian that it has set itself a three-year target to completely change the category.
Overall, it is for this reason that I would put it up there with Altium Limited (ASX: ALU) and Nextdc Ltd (ASX: NXT) as one of the best tech shares on the ASX right now.
