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.

Investing in Nasdaq 100 stocks isn’t just about picking big names - it’s about finding the right ones, and that’s where StockStory comes in. That said, here is one Nasdaq 100 stock that has huge potential and two that may struggle.

Two Stocks to Sell:

Intel (INTC)

Market Cap: $101.6 billion

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.

Why Should You Sell INTC?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.9% annually over the last five years
2. Inability to adjust its cost structure while its revenue declined over the last five years led to a 46.7 percentage point drop in the company’s operating margin
3. Free cash flow margin dropped by 25 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Intel’s stock price of $23.28 implies a valuation ratio of 38.8x forward P/E. To fully understand why you should be careful with INTC, check out our full research report (it’s free).

Warner Bros. Discovery (WBD)

Market Cap: $29.71 billion

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Why Do We Think WBD Will Underperform?

1. Products and services have few die-hard fans as sales have declined by 4.9% annually over the last two years
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 38.3% annually while its revenue grew
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $11.94 per share, Warner Bros. Discovery trades at 218.2x forward P/E. If you’re considering WBD for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Atlassian (TEAM)

Market Cap: $50.3 billion

Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ: TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.

Why Do We Love TEAM?

1. Average billings growth of 14.7% over the last year enhances its liquidity and shows there is steady demand for its products
2. Software platform has product-market fit given the rapid recovery of its customer acquisition costs
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Atlassian is trading at $192 per share, or 8.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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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