Everyone’s always looking to find the right time to buy the big FAAANG stocks. But what about tech stocks closer to home? Here are three ASX tech stocks to watch this week.

While the Australian tech sector doesn’t carry the same global weight, there are still a handful of high-quality names with momentum, earnings upside, or recent catalysts that deserve a spot on your radar. 

We asked Adam Dawes, Senior Investment Adviser at Shaw and Partners, for his local picks on this week’s Switzer Investing TV. Here’s what he’s watching.

Xero (ASX: XRO)

Xero is a New Zealand-headquartered cloud accounting software company serving over 4.2 million subscribers globally, primarily small businesses and their advisers. 

In its latest results, the company reported a 30% increase in net profit to NZ$227.8 million and a 23% rise in revenue to NZ$2.1 billion, supported by strong subscriber growth and tighter cost control. 

The stock has rallied from around $120 in mid-2024 to near $181.47 at the close of today’s session, reflecting renewed investor confidence in its profitability and scale.

Adam Dawes showed us his confidence, saying that it might be time to give it a haircut.

“I took a little bit of profit for clients on Xero the other day,” Dawes said. “That was a fantastic move and a great result. The market rewarded Xero, so taking a little bit off the top around that $180 level, I think that’s probably not a bad idea.”

Disclosure: Paul Rickard, author of this article, is a non-executive director of Xero.

Life360 (ASX: 360)

Wanna track your kids 24/7? If you answered yes, you’re who Life360 is looking for. And you’re exactly like the 80 million or so people currently using Life360. 

It’s a a San Francisco-based tech company listed on the ASX, known for its family safety and location-sharing app. The platform now boasts 83.7 million monthly active users, a sharp lift that’s helping drive the company’s revenue growth and monetisation strategy. 

Adam - who disclosed he’s a shareholder in Life360 - said he still think it could go further thanks to recent good results.

“The stock was $16 in the last downturn and it’s now touching over $30,” Dawes said. 

“They added another four million subscribers in the last quarter. This thing is still moving in the right direction.”  

In the March 2025 quarter, Life360 delivered US$103.6 million in revenue, up 32% year-on-year. The company was one of the ASX 200’s best performers in FY2024, delivering a 115.4% share price gain as growth investors poured into the stock.

One to keep watching for sure.

EchoIQ (ASX: EIQ)

Here’s a recommendation from Adam that’s one to watch, potentially with raised eyebrows. 

EchoIQ is a small cap med-tech company that’s using AI in diagnostics. Its flagship platform, EchoSolv, recently received 510(k) clearance from the US FDA, allowing it to be used to assist in the identification of structural heart conditions.

The company is now seeking additional approval for its heart failure product and has been granted a reimbursement code in the US to begin generating revenue. 

Adam shared he owns stock, as well as some stats, adding that “it has a 97% success rate for picking up [certain cardiac] issues early,” Dawes said.

While the stock remains speculative, Dawes sees upside as the company scales into the American healthcare system. 

Following a 30-cent capital raise earlier in May, Echo IQ is at 24 cents. At least, it was at the time the show went to air on Monday afternoon.

After a one-day 25% slide in the stock, the ASX granted EIQ a trading halt pending a “major announcement”. The halt expires on Wednesday this week, unless they announce something material before then.

Either way, one to keep an eye on. We’ll update when we hear more.

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