2 ASX 200 tech shares I don't want to miss if the market rallies 

Why Tyro Payments Ltd (ASX: TYR) and PointsBet Holdings Ltd (ASX: PBH) are ASX 200 tech shares I wouldn't want to miss if the market rallies.

| More on:
A woman putting her hands to her head grimaces and screams as the Zip share price plunges again

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is on the verge of breaking out of its 5725 to 6200 point trading range. The job centric federal budget, recovery of United States president Donald Trump and additional stimulus packages, not just in the US but globally, could push the markets even higher. Here are 2 ASX 200 tech shares that I wouldn't want to miss if the market rallies. 

2 ASX 200 tech shares I'm keeping a close eye on

1. Pointsbet Holdings Ltd (ASX: PBH

The PointsBet share price jumped an eye watering 80% following the announcement of its partnership with NBCUniversal last month. The company's share price has held its ground amidst a volatile market in September and in light of a significant A$303 million capital raising at $6.50 per share to fund its NBCUniversal partnership.

The US sports betting landscape continues to evolve in favour of the PointsBet business. Illinois, for example, with its six retail sportsbooks and three online platforms generated a combined handle of nearly US$140 million, according to the Illinois Gaming Board. This US$140 million more than doubled the combined US$61.7 million handle it reported in the months of March, June and July. 

The PointsBet business continues to stay on its feet with the announcement of a sportsbook content deal with Genius Sports Group, becoming the first sports betting operator in the US to adopt streaming on its app. PointsBet will add thousands of live streams across a variety of sports and geographies, complete with official data-powered in-game pricing for every match. This type of innovation in a young market and the company's first mover advantage could better position PointsBet against larger US bookmakers such as Draft Kings and Fan Duel. 

Morgan Stanley and JP Morgan estimate that the US sports betting and iGaming market will balloon to a potential combined 2025 market of US$12 billion. This is a significant revenue opportunity and PointsBet is positioned front and centre to take its bite. 

2. Tyro Payments Ltd (ASX: TYR

Tyro is Australia's largest EFTPOS provider outside of the big four banks, providing tailored EFTPOS, business loans and banking solutions that support over 32,000 Australian businesses. Beyond credit, debit and EFTPOS card acquiring, it also offers Medicare and private health fund claiming and rebating services. 

I believe Tyro represents a comeback story following a very challenging year, particularly for its merchants with the impact of COVID-19 and bushfires. For the first half of the year, transaction values were up 30% over 1H19. This momentum continued into January and February 2020 with year-to-date transaction value growth up to February 2020 lifting 29% over the comparable period. However, the introduction of mandatory lockdowns across Australia from mid-March, saw its overall transaction value growth rate moderate back to 15% for the full year. This translated to an 11% increase in revenue to $210.7 million. 

The anticipated relaxation of lockdown measures in Victoria could be a catalyst for an improvement in the Tyro share price and its transaction volumes. Furthermore, this ASX tech share has made significant strides into additional fintech enabled business solutions. These include the release of new banking products such as a merchant cash advance as a loan offering for all Tyro merchants, a pilot of a new term deposit account for Tyro merchants, a payment and rebating solution for health practitioners and least cost routing to reduce costs for merchants.

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd and Tyro Payments. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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.

More on Technology Shares

Two men laughing while bouncing on bouncy balls
Technology Shares

Top broker says ASX 300 tech stock has 18% upside after sell-off

ASX 300 investors overreacted in punishing the high flying tech stock yesterday, this top broker says.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

These ASX 200 tech stocks just crashed! Is this a no-brainer buying opportunity?

Bell Potter thinks these tech stocks could be great options following declines this week.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Technology Shares

Down 45% in 8 months, why this ASX 200 tech stock 'now looks attractive'

Down 45% since March, this investing expert sees good value in the ASX 200 tech stock.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Why is this ASX tech stock crashing 27% today?

Why are investors hitting the sell button? Let's find out.

Read more »

Man looks confused as he works at his laptop. watching the Magnis share price movements
Technology Shares

WiseTech share price in spotlight again as class action mounts

The headlines continue rolling in.

Read more »

Unsure man analysing data on laptop.
Earnings Results

ASX 200 tech stock sees red as investors punish Q3 results

Investors continue digesting the numbers.

Read more »

Two brokers analysing stocks.
Broker Notes

Don't miss these changes to broker ratings on ASX shares

The verdicts are in.

Read more »