Why I think these tech shares could beat the market in 2018

I think that Nextdc Ltd (ASX:NXT) shares could beat the market next year along with…

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This year there have been a great number of tech shares which have vastly outperformed the market.

These include the likes of Aconex Ltd (ASX: ACX), Altium Limited (ASX: ALU), Appen Ltd (ASX: APX), and WiseTech Global Ltd (ASX: WTC).

Their performances this year have been outstanding and no doubt have put a smile on the faces of their respective shareholders this Christmas.

If you missed out on these gains don't worry. I think these two tech shares are capable of beating the market in 2018.

Big Un Ltd (ASX: BIG)

Although this video technology company's shares have gone absolutely nuts this year, I still think they are great value. Management expects to achieve global cash receipts from customers in excess of $22 million for the second-quarter, up approximately 450% on the prior corresponding period. If it continues this strong run for the remainder of the year, I believe it is capable of delivering a full-year cash profit of approximately $30 million in FY 2018. This prices its shares at under 15x forward earnings.

Nextdc Ltd (ASX: NXT)

This leading data centre operator counts the likes of global tech giants Google and Amazon amongst its growing number of customers. With demand for its services expected to increase at an incredible pace due to the rise of cloud computing, I think it could prove to be one of the best growth shares on the market. And while its shares are a little on the expensive, I expect them to justify this premium over the long-term as the company scales and its profit growth accelerates.

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended ACONEX FPO. The Motley Fool Australia owns shares of Altium, Appen Ltd, and WiseTech Global. 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.

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