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. Keeping that in mind, here are two Nasdaq 100 stocks driving the future of tech and one that may face some trouble.
One Stock to Sell:
Marriott (MAR)
Market Cap: $84.2 billion
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ:MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Why Should You Dump MAR?
- Softer revenue per room over the past two years suggests it might have to invest in new amenities such as restaurants and bars to attract customers
- Subpar operating margin of 15.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Poor free cash flow margin of 9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Marriott’s stock price of $313.77 implies a valuation ratio of 28.3x forward P/E. Read our free research report to see why you should think twice about including MAR in your portfolio.
Two Stocks to Watch:
Palo Alto Networks (PANW)
Market Cap: $132.1 billion
Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ:PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.
Why Do We Like PANW?
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 13.2%, and it turbocharged its profits by achieving some fixed cost leverage
- Strong free cash flow margin of 38.6% enables it to reinvest or return capital consistently
At $189.62 per share, Palo Alto Networks trades at 12.2x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
AppLovin (APP)
Market Cap: $247.9 billion
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Do We Love APP?
- Annual revenue growth of 30.9% over the last two years was superb and indicates its market share is rising
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Robust free cash flow margin of 64.5% gives it many options for capital deployment
AppLovin is trading at $733.75 per share, or 34.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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.