While the Nasdaq 100 (^NDX) is filled with cutting-edge technology and consumer companies, not all are on solid footing. Some are dealing with declining demand, high costs, or regulatory pressures that could limit future upside.
Even among high-growth companies, some are struggling, which is why we built StockStory - to help you separate winners from losers. That said, here are two Nasdaq 100 stocks driving the future of tech and one that may face some trouble.
One Stock to Sell:
Texas Instruments (TXN)
Market Cap: $196.8 billion
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.
Why Are We Hesitant About TXN?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.3% annually over the last two years
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 9.9 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 32.1 percentage points
Texas Instruments is trading at $217.81 per share, or 37.6x forward P/E. Dive into our free research report to see why there are better opportunities than TXN.
Two Stocks to Watch:
AppLovin (APP)
Market Cap: $123.1 billion
Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ: APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers.
Why Should APP Be on Your Watchlist?
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Excellent operating margin of 42.8% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 49.3% gives it many options for capital deployment
AppLovin’s stock price of $365.40 implies a valuation ratio of 22.5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Booking (BKNG)
Market Cap: $185 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Should You Buy BKNG?
- Room Nights Booked are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Share buybacks catapulted its annual earnings per share growth to 51.8%, which outperformed its revenue gains over the last three years
- Strong free cash flow margin of 33.1% enables it to reinvest or return capital consistently
At $5,700 per share, Booking trades at 20.4x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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