2024 saw the tech sector dominate almost unchallenged, but analysts are cautious about their predictions for 2025.
In 2024, the technology sector dominated the markets, contributing significantly to the growth of the Nasdaq-100, the index that collects the 100 largest non-financial companies listed on the Nasdaq.
The growth of the index outpaced that of the S&P 500, with an increase of about 29%, mainly thanks to giants such as Apple, Nvidia, Broadcom and Tesla.
However, some experts predict that this momentum will not last long and that in 2025 some of the strongest companies could suffer a decline.
In 2024, investors continued to focus on the technology sector, with particular attention to the beneficiaries of artificial intelligence and the semiconductor industry. The Nasdaq-100 Index gained about 29%, beating the S&P 500, which rose 26%. The strongest performers were Apple, Nvidia and Tesla, which had a positive impact on overall returns.
However, some analysts predict that these same companies could face a slowdown in 2025. In fact, forecasts for some of the most popular Nasdaq stocks indicate negative returns.
Below is the table showing analysts’ forecasts for the most at-risk stocks:
- Tesla -35.7%
- Grail -12.09%
- Netflix -7.22% |
- Marriott International -2.5%
- Apple -2.27%
- AppLovin-1.77%
- Paychex -0.57%
- Fortinet -0.16%
Among the most at-risk stocks is Tesla. According to analysts’ forecasts, its share price could suffer a loss of 35.7%. Despite a significant increase of 80% in 2024, the company’s valuation could be tested in the coming year. Tesla has seen a surge in sales, but the market may not be ready to sustain the current pace of growth.
Another company that could see a decline is AppLovin. Although its stock has increased by more than 765% this year, forecasts suggest it could decline by 4% in the short term. Despite its strong financial results, the company may face challenges in terms of sustaining that growth.
Netflix, which saw growth of 88% in 2024, is also among the most vulnerable companies. Analysts are forecasting a decline of 7-8% for the streaming platform. Concerns surround its historically high valuation, which may not be justified by continued growth.
Other companies at risk of decline include Apple and Marriott International. Apple, despite being one of the strongest companies in the tech sector, could see a loss of 2.27% in 2025. Similarly, Marriott International, a hotel operator, could suffer a loss of 2.5%.
2024 has seen the tech sector dominate almost entirely, but analysts are cautious about their forecasts for 2025. Companies such as Tesla, AppLovin and Netflix could face challenges, with potential losses that could negatively impact their stock prices. Investors should monitor these projections closely and prepare for a possible shift in the tech market.
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The information and considerations contained in this article must not be used as the sole or main basis for making investment decisions. The reader retains full freedom in his or her investment choices and full responsibility in making them, since only he or she knows his or her risk appetite and time horizon. The information contained in the article is provided for information purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public to save.|
Original article published on Money.it Italy 2024-12-28 12:45:00. Original title: 8 azioni sul Nasdaq che crolleranno nel 2025
