Resilient Tech Stocks Worth Considering in a Turbulent Market

Many tech stocks have struggled this year due to factors like tariffs, trade wars, and broader economic challenges. These elements have made it tough to invest in tech companies heavily reliant on global supply chains. However, a few tech stocks are showing resilience against these near-term pressures. Let’s take a closer look at three of these stocks: VeriSign (NASDAQ: VRSN), S&P Global (NYSE: SPGI), and Netflix (NASDAQ: NFLX).

1. VeriSign

VeriSign manages the authoritative registries for the internet’s leading top-level domains: .com and .net. It also serves as the primary subcontractor for the .edu and .jobs domains, selling these names to registrars who then offer them to the public.

As long as individuals and organizations continue to register and renew their domain names, VeriSign’s revenue is likely to grow. Between 2014 and 2024, registrations for .com and .net rose from 130.6 million to 169 million. During the same period, revenue and earnings per share (EPS) expanded at compound annual growth rates (CAGR) of 4% and 12%, respectively, with a consistent annual renewal rate in the low 70s.

This business model provides a wide moat and stable growth, insulating VeriSign from macroeconomic pressures, as clients are unlikely to forgo renewing their domain names for minor savings. Although there were antitrust concerns that led some to urge the U.S. government to reconsider its contracts with VeriSign, the government renewed its essential agreements with the company for an additional six years last August.

Analysts predict that VeriSign’s revenue and earnings will rise by 5% and 10%, respectively, this year. While its stock may seem expensive, trading at 32 times forward earnings, its robust business model appears to justify this valuation. Notably, Warren Buffett’s Berkshire Hathaway has been increasing its stake in VeriSign while offloading other stocks to bolster cash reserves.

2. S&P Global

S&P Global offers financial data, credit ratings, and analytics services to a vast customer base, including all Fortune 100 companies and 80% of the Fortune 500. Its services are crucial for financial decision-making across various sectors, including banking and insurance. The company is also integrating new AI tools to enhance its offerings.

Two key factors help S&P Global’s business remain insulated from tariff impacts. Firstly, demand for its analytics and credit rating services will likely remain strong even if the broader market slows. Secondly, it holds a near-duopoly in its sector alongside competitor Moody’s.

From 2014 to 2024, S&P Global’s revenue expanded at a CAGR of 11%. After experiencing a net loss in 2014 due to one-off legal expenses, the company’s EPS increased at a CAGR of 12% from 2015 to 2024.

This year, analysts expect the company’s revenue and EPS to grow by 5% and 8%, respectively. While these growth figures might seem modest for a stock trading at 32 times forward earnings, the sustainable nature of its business and its resilience to economic headwinds support this higher valuation.

3. Netflix

Netflix stands as the largest premium streaming video service globally, with subscribers increasing from 57.4 million in 2014 to 301.6 million in 2024. Over this decade, the company’s revenue and net income grew at CAGRs of 21% and 41%, respectively.

This growth can be attributed to Netflix’s AI algorithms that analyze viewing habits, along with its expansion into international markets and affordable ad-supported tiers. Its early entry into the market and robust pricing strategies have allowed it to maintain profitability over smaller competitors.

Looking ahead to 2025, analysts forecast revenue and earnings growth of 14% and 29%, respectively, driven by the revival of popular shows such as Squid Game, Wednesday, and Stranger Things, along with new content. Although Netflix’s stock trades at 47 times forward earnings, its core business remains insulated from tariffs.

While Netflix may face challenges such as reduced ad revenues or rising production costs, its ability to attract new subscribers could persist even amid broader economic slowdowns. This positions it as a strong tech stock to consider in today’s unpredictable market.

Should You Invest $1,000 in VeriSign Now?

Before committing funds to VeriSign, here are a few points to consider:

Although notable investment analysts have recommended various stocks recently, VeriSign did not make their latest recommended list. It’s crucial to weigh other options that may yield substantial returns over time.

For anyone evaluating stock recommendations, historical performance shows that if you had invested $1,000 in certain stocks when they first made recommended lists, your returns could have been significantly higher. For instance, early investors in Netflix saw monumental growth.

Overall, while VeriSign shows promise, potential investors should look carefully at the broader landscape and other opportunities before deciding where to place their funds.

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