It’s no secret that technology stocks have contributed to much of the market’s gains this year. But the tech industry may look different by 2025, as favorites like AppLovin and Netflix may actually take a hit. In 2024, for the second consecutive year, investors poured money into the technology sector, especially the semiconductor industry and expected beneficiaries of artificial intelligence. The Nasdaq 100, which measures the performance of the 100 largest non-financial companies listed on the Nasdaq, is up about 29% this year, outpacing the S&P 500’s 26% gain. The tech index includes Apple, Nvidia, Broadcom and Tesla. However, some of these tech companies may fall next year after rising sharply. Using the CNBC Pro Stock Screener, we looked at consensus price forecasts for companies in the Nasdaq 100 and found that the following stocks are expected to post negative returns over the next 12 months. Tesla shares were the biggest losers on the index. Analysts polled by London Stock Exchange Group (LSEG) had a consensus price target on the stock, predicting it could fall 35%. As of Monday’s close, the electric car maker’s shares were up about 80% this year after doubling in 2023. Chief Executive Musk’s advisory relationship with Trump and expectations of loosening regulations from the new administration will ease Tesla’s pursuit of its self-driving goals. Wall Street is watching to see whether Tesla can boost sales of its electric cars, win approval for its unsupervised fully self-driving software and put its robotaxis on public roads. AppLovin’s stock price has risen more than 765% this year, making it the best performer among all technology companies valued at $5 billion or more, according to FactSet data. Online gaming and advertising stocks show few signs of stopping, with shares up nearly 165% this quarter. AppLovin beat third-quarter profit and revenue estimates and issued a higher-than-expected fourth-quarter revenue forecast, bolstering analysts’ confidence in the company’s continued profitability. As of Tuesday, the stock’s consensus price target projected a potential downside of around 4%. APP Mountain Applovin stock performance so far this year. Analysts also believe that streaming platform Netflix may be overvalued, and expect its stock price to fall by about 8%. By 2024, the stock price has risen nearly 88%. “All-time high” valuation, as the company’s enterprise value peaked near mid-2021 and did not reach its peak until mid-2018. “We believe it would be unwise to forecast higher revenue growth assumptions, even assuming entry into more genres, such as more live sports, and successful advertising,” Gould wrote in a Dec. 15 note to clients. Launch. Other potential losers for the Nasdaq 100 in 2025 could be hotel operator Marriott International Inc. and iPhone giant Apple Inc., which are each expected to lose about 4% next year based on consensus price targets on Tuesday.
