Two beaten-down ASX-listed tech shares to look at

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Two beaten-down ASX-listed tech shares to look at

 Two beaten-down ASX-listed tech shares to look at
Image source: REDPIXEL.PL,Shutterstock

Highlights

  • Expectations of rate hikes in 2022 in the US have put tech shares under pressure in the past few weeks.
  • Rising bond yields have also put pressure on tech and growth stocks.
  • Rising bond yields have also put pressure on tech and growth stocks.

A few tech shares saw their prices falling in a big way in the past few weeks. Technology shares are mainly under pressure amid expectations of interest rate hikes in 2022 by the US Federal Reserve.

As a result, bond yields have also surged. Rising bond yields could keep pressure on tech and growth stocks for now, as investors bet the Fed may raise interest rates four or more times this year.

Some ASX-listed shares have suffered some big declines recently. Thus, these tech stocks may be good options to latch on.

On this note, let’s discuss the two-beaten down ASX-listed tech shares which investors can look at:

Temple & Webster Group Ltd (ASX:TPW)

Temple & Webster Group is an Australia-based online retailer, which is primarily engaged in sales and distribution of third-party manufactured furniture and homewares to its commercial and residential customers. It has over 200,000 products on sale from hundreds of suppliers. Several of the company’s products are sent directly to customers by suppliers, ensuring faster delivery.

The company’s stock delivered a negative return of over 24%. In the past year, the stock fell by nearly 39%. In the past month, the stock slipped by over 18%.

Despite the recent fall, experts are optimistic about the company which operates in a AU$16-billion market (excluding business to business) where less than 9% of that is sold online.

In the six months to 30 June 2020, the company saw revenue growth of 96%, with FY20 fourth-quarter revenue growth of 130%. The revenue rose by 85% to AU$326.3 million in FY21. In FY22 to 15 October 2021, the company reported revenue growth of 56%.

The company expects the business to record robust growth amid the current adoption of online shipping due to structural and demographic shifts.

Technology shares are mainly under pressure amid expectations of interest rate hikes in 2022 by the US Federal Reserve.

Source: ©Miflippo  | Megapixl.com

Xero Ltd (ASX:XRO)

Xero is a New Zealand-based public software company that offers cloud-based accounting software services and connects small- and medium-sized businesses to their advisors. The company is one of the leading firms worldwide when it comes to accounting software.

The company’s stock delivered a negative return of over 21%. In the past year, the stock fell over 15%. In the past month, the stock slipped by nearly 16%.

Despite the fall in stock price, the company has continued to report growth on most operating metrics. In the first half of FY22, the gross profit margin increased from 85.7% to 87.1%. Subscribers jumped 23% to 3 million. The average revenue per user (ARPU) went up 5% to AU$31.32 in 1HY22.

The company last year announced the acquisition of LOCATE Inventory, a US cloud-based inventory management provider.

It also revealed its plans to acquire TaxCycle – a leading Canadian tax preparation software company for accountants and bookkeepers.

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