The technology industry is the most exciting sector in my opinion. Someone can raise millions just with an idea of something for software.
Once the software is developed it's easy to rapidly roll out the product because it's intangible, you usually can transmit it over the internet, whereas you have to pay to store and transport goods like cars, chairs or food.
Not every tech share is a top idea. However, these shares are making waves:
Altium Limited (ASX: ALU)
The Altium share price is up 3.13% today and it has gone up by 157% over the past year. It's one of the world's leading electronic PCB software providers.
It serves organisations like NASA, BMW and Cochlear Limited (ASX: COH). Altium is rapidly expanding because the world is becoming more technological and needs more electronic printed circuit boards, particularly due to the internet of things. Altium grew its revenue by 30% in its most recent report and I imagine growth will continue at a good pace for the next several years.
Xero Limited (ASX: XRO)
The Xero share price is up by 1.64% today and 90% over the past year. Xero is one of the world's largest cloud accounting software providers.
It dominates the New Zealand market, it is the leader of cloud accounting in Australia and it's making rapid progression in the UK. It has powerful 'platform' effects and it has a very high retention rate of subscribers. If it keeps growing its total number of subscribers its profit margins and bottom line should keep improving.
WiseTech Global Ltd (ASX: WTC)
The Wisetech share price is up by 6.69% today and 94% over the past year. Wisetech provides cloud-based software for domestic and international logistics companies. Logistics is increasingly important and the world is becoming more global with trade.
In its recent half-year report Wisetech revealed revenue growth of 31%. Management believe that e-commerce will continue to be a strong tailwind for the business in the coming years.
Foolish takeaway
All three businesses are excellent Australian (and Kiwi) shares. However, they're all trading very expensively at the moment. If I had to choose one it would be Altium because its management believe revenue will keep growing strongly for at least the next few years.
