The Nasdaq 100 index continues its strong surge this year and is now at its highest record level. It soared to a high of $22,175 on Wednesday, bringing its year-to-date gains to about 4.3%.
This rally may continue, considering that the index has been in a prolonged bull market sinceits inception. However, there is a risk that some of the best-performing Nasdaq 100 index stocks will suffer a strong reversal later this year.
Here are some of the top Nasdaq 100 stocks to sell this year. While some of these names may continue their surge later this year, exiting now means taking some good profits and reducing odds of a reversal.
Top Nasdaq 100 stocks to sell
Some of the top blue-chip Nasdaq index stocks to sell now are Palantir Technologies (PLTR), AppLovin (APP), Constellation Brands (CEC), and Meta Platforms (META).
AppLovin (APP)
AppLovin stock price continues to surge this year, and is the best-performing company in the Nasdaq 100 index. It has soared by 52% this year, bringing the 52-week gains to 725%.
This growth continued after the company published its strong earnings this month. Some Wall Street pros even call for adding it to the Magnificent 7 group of companies.
There is a risk that the AppLovin stock price will crash for three main reasons. First, it has become highly overvalued as its forward PE ratio stands at 77.
Second, the stock may go through a mean reversal, where it pulls back to its averages. Third, AppLovin is now in the markup phase of the Wyckoff Method, meaning that it may move to the distribution and markdown soon.
Read more: AppLovin stock forecast: Here’s why APP shares may crash soon
Palantir (PLTR)
Palantir is another Nasdaq 100 stock to sell after its price surged 48% this year and 360% in the last 12 months. The company’s strong financial results, including a big jump in commercial revenue, have helped its performance.
Palantir is also benefiting from the ongoing demand for its artificial intelligence solutions known as AIP.
The main reason why one should sell the PLTR stock is that they have likely made a lot of money in it. It has also become highly overvalued as it trades at a forward PE ratio of 402.
Palantir had an annual revenue of $2.8 billion in 2024 and a net income of $468 million. It is now valued at over $262 billion, which is a big stretch.
Meta Platforms (META)
Meta Platforms is another good Nasdaq 100 stock to sell after it surged from a low of $86 in 2022 to $740 this year. This growth has pushed its market cap to over $1.7 trillion.
Meta Platforms shares have soared after the company’s revenue growth accelerated, moving from $86 billion in 2020 to over $164 billion last year. Its cost-cutting and efficiency measures have made it a highly profitable company with an annual profit of $62 billion.
Meta stock price has soared by over 20% this year and 50% in the last 12 months. While Meta is a good company, there is a likelihood that it will pull back as investors start to take profits. Also, there are concerns about its revenue growth as it lacks a clear catalyst going forward.
Constellation Energy (CEG)
Constellation Energy stock price has soared by 43% this year and by 148% in the last 12 months. This growth happened after the company reached a deal to restart an old nuclear power plant with Microsoft because of the rising artificial intelligence demand.
Constellation Energy stock has soared as investors estimate that the deal will lead to more revenue growth in the near term. However, the profits and revenues will likely take time to materialize, which makes it a good stock to sell today.
The post Sell these overvalued Nasdaq 100 stocks at their top appeared first on Invezz
