The Nasdaq 100 (^NDX) is known for housing some of the most innovative and fastest-growing companies in the market. But not every stock in the index is a winner - some are struggling with slowing growth, increasing competition, or unsustainable valuations.
With rapid innovation comes rapid change, and StockStory is here to help you identify which Nasdaq 100 stocks are still worth your money. That said, here is one Nasdaq 100 stock driving the future of tech and two that may face some trouble.
Two Stocks to Sell:
Adobe (ADBE)
Market Cap: $149.2 billion
Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.
Why Are We Cautious About ADBE?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 12.6% underwhelmed
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 9.4%
- Operating margin improvement of 5.3 percentage points over the last year demonstrates its ability to scale efficiently
Adobe is trading at $355.65 per share, or 5.6x forward price-to-sales. Read our free research report to see why you should think twice about including ADBE in your portfolio.
Applied Materials (AMAT)
Market Cap: $205.5 billion
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Hesitant About AMAT?
- Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its two-year trend
Applied Materials’s stock price of $258.91 implies a valuation ratio of 28.4x forward P/E. Check out our free in-depth research report to learn more about why AMAT doesn’t pass our bar.
One Stock to Buy:
Shopify (SHOP)
Market Cap: $213.7 billion
Starting with just three people selling snowboards online in 2004, Shopify (NYSE: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Do We Love SHOP?
- Average billings growth of 30.8% over the last year enhances its liquidity and shows there is steady demand for its products
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $164.11 per share, Shopify trades at 16.2x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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-small-cap company Exlservice (+354% 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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