ASX growth investing is a trend that has rapidly grown in popularity over the past few years. From the rise of the WAAAX shares to the rise of buy now, pay later (BNPL) companies, there has certainly been a lot going in in this space.
But of the countless companies trying to occupy this space, which are the best shares to invest in for 2021 and beyond? Here are 2 to consider today:
Image source: Getty Images
2 ASX growth shares
Afterpay Ltd (ASX: APT)
Afterpay, we're here again. This BNPL pioneer is never far from the spotlight. Last year, Afterpay sensationally cratered during the coronavirus-induced market crash, falling to a multi-year low of $8.01 a share. But since then, this company has managed to engineer a stunning recovery.
Just last month, Afterpay yet again set a new all-time high share price of $151.22. Even on today's share price of $147.02 (at the time of writing), this company is up more than 1,500% from those lows.
Although this share price looks expensive from that perspective, there's a reason investors' can't get enough of this company. It has been growing at breakneck speed too.
In its annual report for FY2020, the company announced a 112% increase in underlying sales to $11.1 billion and a 73% rise in earnings before interest, tax, depreciation and amortisation (EBITDA). Afterpay has always been a company that has looked expensive. But remember, that perception has not paid off for anyone in the past 5 years.
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is another ASX growth share to look at today. This company provides a Software-as-a-Service (SaaS) business model which provides businesses with access to Bigtincan's Hub platform.
Bigtincan Hub works as a 'sale enablement' service and allows business clients to use tools like document editing, cloud storage and video conferencing. It essentially helps businesses function more efficiently, and hone their marketing strategies. It has also been expanding rapidly, especially in the past year. The acquisitions of VoiceVibes and ClearSlide have the potential to add a lot of functionality to Bigtincan Hub, and allow the company to expand into areas where it previously had little presence.
On top of that, Bigtincan is a company that is already growing fast organically. In its recently-announced quarterly update, Bigtincan told investors that recurring revenues had grown by an astonishing 50% over the prior corresponding quarter. Its recent capital raising has also left the company with plenty of cash in the bank for future expansion.
