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.
With rapid innovation comes rapid change, and StockStory is here to help you identify which Nasdaq 100 stocks are still worth your money. Keeping that in mind, here is one Nasdaq 100 stock driving the future of tech and two that may face some trouble.
Two Stocks to Sell:
Marriott (MAR)
Market Cap: $96.37 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 Are We Out on MAR?
- Revenue per room has underperformed over the past two years, suggesting it may need to develop new facilities
- Operating margin of 15.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Free cash flow margin is on track to jump by 1.1 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
Marriott’s stock price of $363.60 implies a valuation ratio of 31.7x forward P/E. To fully understand why you should be careful with MAR, check out our full research report (it’s free).
Tesla (TSLA)
Market Cap: $1.47 trillion
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ: TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.
Why Do We Think TSLA Will Underperform?
- Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical.
- The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors.
- On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company.
Tesla is trading at $393.45 per share, or 191.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TSLA.
One Stock to Buy:
Monolithic Power Systems (MPWR)
Market Cap: $66.46 billion
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Will MPWR Outperform?
- Market share has increased this cycle as its 27% annual revenue growth over the last five years was exceptional
- Free cash flow margin grew by 7.1 percentage points over the last five years, giving the company more chips to play with
- Industry-leading 43.5% return on capital demonstrates management’s skill in finding high-return investments
At $1,352 per share, Monolithic Power Systems trades at 63.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
