Market Challenges: Two Tech Stocks to Consider Investing in 2025

The start of 2025 has not been smooth for the Stock market. As of March 10, several prominent stocks, along with the key indexes—the S&P 500 and Nasdaq Composite—are showing negative returns for the year.

For some investors, this downturn may mean that their portfolios are experiencing declines. However, it’s worth noting that market slumps are common and can provide valuable buying opportunities.

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If you have $1,000 to invest, consider these two tech stocks: one provides dividends, while the other focuses on growth. Allocating $500 to each could balance your investment strategy effectively.

Image source: Getty Images.

1. AT&T (NYSE: T)

AT&T has distinguished itself amid the 2025 Stock market downturn, with shares up over 18% this year. This marks a significant increase as it has risen more than 56% in the last 12 months.

This turnaround can be attributed to AT&T’s renewed emphasis on its core telecommunications services, particularly in mobile and fiber. In 2024, the company gained 1.7 million new postpaid phone customers and 1 million fiber customers, marking its seventh consecutive year of adding over a million subscribers.

Mobile services have been AT&T’s primary revenue source, but the company is actively reinvesting its profits into fiber expansion. This strategic growth is vital for its long-term success as it competes in the broadband market, aiming to provide faster, more reliable internet options.

In the fourth quarter, AT&T reported an 18% year-over-year growth in fiber revenue, with expectations for mid-teen growth percentages in 2025. This is significantly higher than projected growth rates in the mobility sector, which are expected to fall between 2% and 3%. If AT&T achieves these targets, its dividend stability will remain attractive.

As AT&T’s stock price rises, its dividend yield has slightly decreased but remains above the market average at around 4.1%. Assuming the yield stabilizes at this level, a $500 investment could generate about $20 in dividends this year—an encouraging amount for a long-term holding.

2. Amazon (NASDAQ: AMZN)

In contrast to AT&T, Amazon has faced challenges, with shares down over 12% as of now. This pattern mirrors that of the broader “Magnificent Seven” stocks, a group that includes significant tech companies aside from Meta Platforms.

Despite current hurdles, Amazon remains a top investment choice. Originally an online bookstore, the company has evolved into an e-commerce powerhouse with interests in cloud computing, advertising, healthcare, and entertainment.

Amazon Web Services (AWS), the firm’s cloud division, continues to drive growth and profitability, contributing 58% of its operating income, despite e-commerce being its main revenue generator.

AWS’s success showcases Amazon’s ability to adapt and grow, and its advertising sector, while still developing, has shown rapid growth, indicating potential for future profit increases as the Prime membership expands.

In 2024, Amazon reported $638 billion in revenue, marking an 11% increase, making it the second largest public company by revenue, following Walmart. This growth trend highlights the firm’s resilience over the decade.

AMZN Revenue (Annual) data by YCharts

While Amazon’s stock may not appear inexpensive by traditional metrics, its recent dip offers a more favorable entry point for investors. For those apprehensive about further declines, employing a dollar-cost averaging strategy could be beneficial, making a $500 investment seem wise when looking ahead a decade.

Investment Opportunities Await

Feeling like you’ve missed out on buying successful stocks before? You may want to reconsider your options.

Occasionally, our expert team releases a “Double Down” Stock recommendation for companies poised for significant growth. If you’re concerned about having missed your chance, the current circumstances present an excellent opportunity to invest.

• Nvidia: If you had invested $1,000 when we issued our double down in 2009, it would be worth $300,143!*
• Apple: A $1,000 investment at the time of our double down in 2008 would have grown to $41,138!*
• Netflix: Investing $1,000 when we doubled down in 2004 would amount to $495,976!*

Right now, we have “Double Down” alerts for three remarkable companies, presenting a rare chance to invest before potential growth accelerates.

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*Stock Advisor returns as of March 10, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook, and sister of Meta Platforms CEO Mark Zuckerberg, is also a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Stefon Walters does not hold positions in any of the stocks mentioned. The Motley Fool owns shares in and recommends Alphabet, Amazon, Meta Platforms, and Walmart. More information on our disclosure policy can be found on our website.

The views expressed herein are those of the author and do not necessarily represent those of Nasdaq, Inc.