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: $95.43 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 Wary of ADBE?
- Offerings struggled to generate meaningful interest as its average billings growth of 11.9% over the last year did not impress
- Estimated sales growth of 9.3% for the next 12 months implies demand will slow from its two-year trend
- Operating margin failed to increase over the last year, indicating the company couldn’t optimize its expenses
Adobe’s stock price of $244.21 implies a valuation ratio of 3.5x forward price-to-sales. To fully understand why you should be careful with ADBE, check out our full research report (it’s free).
Microchip Technology (MCHP)
Market Cap: $40.1 billion
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Are We Bearish on MCHP?
- Sales tumbled by 11.8% annually over the last two years, showing market trends are working against it during this cycle
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 9.6% annually, worse than its revenue
- Free cash flow margin shrank by 15 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Microchip Technology is trading at $73.86 per share, or 18.8x forward P/E. Check out our free in-depth research report to learn more about why MCHP doesn’t pass our bar.
One Stock to Buy:
CrowdStrike (CRWD)
Market Cap: $233.3 billion
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Is CRWD a Good Business?
- Average billings growth of 26% 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 $226.20 per share, CrowdStrike trades at 38.4x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
