2 Nasdaq 100 Companies with Promising Growth and 1 That Raises Concerns

Examining the Nasdaq 100: Standout Stocks and One to Avoid

The Nasdaq 100 is home to many innovative technology and consumer-focused companies, but not every business in the index is thriving. Some face challenges such as weakening demand, rising expenses, or increased regulatory scrutiny, all of which can hinder their future performance.

Even among companies known for rapid growth, there are those that struggle to keep pace. That's why StockStory was created—to help investors distinguish between potential winners and those best avoided. With that in mind, let’s look at two Nasdaq 100 stocks shaping the future of technology, and one that may not deserve a spot on your watchlist.

Stock to Consider Selling

GE HealthCare (GEHC)

Market Capitalization: $38.25 billion

GE HealthCare (NASDAQ: GEHC) became an independent company in 2023 after separating from General Electric, where it had served as the healthcare division for over a hundred years. The company supplies hospitals and clinics worldwide with medical imaging devices, patient monitoring technology, diagnostic drugs, and AI-powered healthcare solutions.

Concerns About GEHC

• With a substantial revenue base, GE HealthCare finds it challenging to accelerate sales growth. Over the past two years, its annual revenue increased by just 2.7%, falling short of what’s typically expected in the healthcare industry.
• Organic revenue growth has also lagged behind sector benchmarks, suggesting the company may need to enhance its products, adjust pricing, or refine its market approach.

Currently, GE HealthCare trades at $83.87 per share, with a forward price-to-earnings ratio of 16.6.

Two Stocks Poised for Growth

Microsoft (MSFT)

Market Capitalization: $2.98 trillion

Founded in 1975 as "Micro-soft" to develop software for microcomputers, Microsoft (NASDAQ: MSFT) has grown into a global leader in technology. The company offers a wide range of products and services, including software, cloud computing, hardware, and artificial intelligence solutions for individuals and organizations worldwide.

What Makes Microsoft Stand Out?

• Microsoft is recognized as one of the most valuable brands in business, not just in technology. Its essential software products, often sold as bundled solutions, deliver industry-leading profit margins.
• The company’s strong unit economics contribute to impressive and improving profitability, reflecting its scale and operational efficiency across a diverse portfolio that includes Office, Azure, and even Minecraft.
• Microsoft benefits from a reinforcing cycle: its dominant market position generates significant free cash flow, which it reinvests into new opportunities, further strengthening its competitive edge.

Microsoft shares are priced at $397.30, representing a forward P/E ratio of 22.8. Wondering if now is the right time to invest?

AppLovin (APP)

Market Capitalization: $150.1 billion

AppLovin (NASDAQ: APP) sits at the heart of the mobile advertising industry, managing a portfolio of over 200 free-to-play games. The company empowers mobile app developers with software tools that leverage AI to optimize advertising, monetization, and growth through advanced analytics.

Why AppLovin Is a Top Choice

• AppLovin achieved remarkable annual revenue growth of 29.2% over the past two years, signaling strong market share expansion.
• Its software is designed for seamless integration, allowing developers to quickly recoup marketing investments and scale their user base efficiently.
• The company’s robust free cash flow margin of 72.5% provides flexibility to reinvest in the business or return capital to shareholders.

AppLovin’s stock is currently valued at $437.29, with a forward price-to-sales ratio of 17.8. Considering an investment?

Discover Even More Compelling Stocks

Building a successful portfolio means looking beyond yesterday’s winners. The risks associated with crowded trades are increasing every day.

The next generation of high-growth stocks can be found in our Top 5 Strong Momentum Stocks for this week. This handpicked selection features high-quality companies that have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our 2020 list included now-prominent names like Nvidia, which soared 1,326% from June 2020 to June 2025, as well as lesser-known firms such as Tecnoglass, which achieved a 1,754% five-year return. Start your search for the next breakout stock with StockStory today.