The months of October and November have been reasonably disappointing for the tech sector.
Since the start of October the S&P/ASX 200 Info Tech index had fallen approximately 13% prior to today.
I'm optimistic that things will be much better in December and beyond, which I feel could make it worth considering an investment in one of the three top tech shares listed below.
Altium Limited (ASX: ALU)
One of my favourite tech shares on the local market is this electronic design software company. Altium has been growing at an impressive rate over the last few years and this looks set to continue being the case for the foreseeable future thanks to the rapidly expanding Internet of Things market. As these devices will more often than not have a printed circuit board (PCB) inside them, I believe subscriptions for Altium's award-winning PCB design software will increase strongly and underpin its earnings growth.
REA Group Limited (ASX: REA)
Another quality tech company that I think is worth considering is REA Group. This year the property listings company has demonstrated to investors that it can still deliver solid earnings growth in a falling housing market. In the first quarter of FY 2019 REA Group delivered a 17% increase in revenue to $221.9 million and a 23% lift in EBITDA to $130.9 million. This strong revenue growth reflected price changes which took effect from July 1, an improved product mix, and further depth penetration.
Xero Limited (ASX: XRO)
I think that this accounting software provider would be a great buy and hold investment option. This is because I believe the quality of Xero's software has put it in a great position to benefit greatly from the shift to cloud-based accounting. This was evident in the first half of FY 2019 when the company saw its revenue jump 37% to $256.5 million thanks to 193,000 net subscriber additions and a 6% lift in its average revenue per user metric.
