Why I'd invest $2,000 in this top ASX tech share

This top ASX tech stock has performed phenomenally in 2019. It grew 24.8% in the year-to-date and there's no sign slowing growth.

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The WiseTech Global Ltd (ASX: WTC) share price has closed at $22.35 today after dipping to $21.28 mid-April. Besides this, WiseTech's share price has remained relatively steady for the last 2 months and has lived up to its WAAAX identity. Should you be buying in the lead up to FY earnings?

Why buy WiseTech shares?

WiseTech's flagship product, CargoWise One, is an end-to-end software solution for the logistics industry. It enables seamless interactions between users along the freight chain and now services over 8,000 businesses across 130 countries.

For the last five years, WiseTech has boasted impressive metrics – a 99% recurring revenue rate and a customer attrition rate of below 1%. Its product is sticky with little to no criticism of the underlying business.

WiseTech is renowned for its strong cash position with $304 million on the balance sheet as at December 2018. The company also raised $300 million via a share purchase plan, fuelling its numerous acquisitions this year. Recently, it acquired Xware for $12 million. This Swedish company is a leading messaging integration solution with customers that include government bodies like Stockholm City Council and Swedish Armed Forces, along with other companies in various industries such as IT, healthcare and logistics.

This improves the seamless integration of information systems for clients using CargoWise One. It also feeds into supporting WiseTech's new product, CargoWise Nexus, which is set to launch next year. Currently, in beta testing, it adopts core aspects of the flagship CargoWise One, and will allow exporters and shippers to plan, book and track cargo shipments in real-time.

WiseTech has kept busy with acquisitions of logistics solution companies across America, Europe and Asia, while retaining a strong cash position. I believe this strategy is effective in accelerating its global geographic foothold. The acquisitions allow the company to bypass setting up operations and licensing in newly entered markets. Furthermore, the adoption and integration of new solutions improve WiseTech operations and product performance. Given the company's strong cash position, this is highly effective.

Foolish Takeaway

Though WiseTech's HY earnings call didn't blow investors hats off, the company is poised for growth. CEO Richard White upgraded FY projections and this has been priced into WiseTech's sky-high 140x PE ratio.

So, why would I buy WiseTech shares now? The company is easily one of the most expensive tech companies in the world on a PE basis, but I'm confident in WiseTech's success in the light of its aggressive scaling internationally.

If you're interested in growth shares and WiseTech isn't for you, perhaps you should be looking at this potential boom industry.

Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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 Scott Phillips.

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