Top-Performing Tech Stocks 2025: Are Palantir, MercadoLibre, and Netflix Still Worth Buying?

By: Sayan

Published on: May 26, 2025

Introduction

The U.S. stock market has experienced volatility in 2025, with the Nasdaq-100 index remaining nearly flat year-to-date. However, certain top-performing tech stocks 2025 have defied this trend, delivering impressive gains. Palantir Technologies (NASDAQ: PLTR), MercadoLibre (NASDAQ: MELI), and Netflix (NASDAQ: NFLX) have surged between 33% and 64% since January. As these Nasdaq-100 stocks continue to outperform, investors are asking: are they still a buy now? In this article, we analyze whether Palantir Technologies stock, MercadoLibre stock, and Netflix stock remain attractive investment opportunities.

Palantir Technologies Stock: Has the AI Hype Outpaced Fundamentals?

Palantir Technologies (PLTR) has been a standout performer, soaring 64% year-to-date in 2025 and an astonishing 1,800% since 2023. This top-performing tech stock 2025 leverages artificial intelligence (AI) to provide custom software for data analysis, helping organizations optimize processes and make real-time decisions. Its AI Platform (AIP), launched in mid-2023, has driven accelerating revenue growth, with Q1 2025 revenue up 39% year-over-year to $634 million, surpassing expectations.

However, Palantir Technologies stock trades at a premium, with an enterprise value of nearly $280 billion against $3.1 billion in trailing-12-month revenue. This sky-high valuation, with a price-to-sales (P/S) ratio of 94 and a forward price-to-earnings (P/E) ratio of around 60, suggests limited short- or medium-term upside. Analysts caution that the stock may be overvalued, recommending investors wait for a price pullback to mitigate the risk of FOMO (fear of missing out).

Key Takeaways for Palantir

• Strengths: Strong AI-driven growth, with 71% year-over-year U.S. commercial revenue increase in Q1 2025.


• Risks: High valuation with a P/S ratio of 94, indicating potential overpricing.


• Investment Advice: Consider small, cautious investments or wait for a better entry point.

MercadoLibre Stock: A Latin American Powerhouse with Room to Grow

MercadoLibre (MELI), up 54% in 2025, is another top-performing tech stock 2025 that continues to shine. Operating exclusively in Latin America, this conglomerate excels in e-commerce, fintech (Mercado Pago), and logistics (Mercado Envios). Its minimal U.S. exposure shields it from tariff-related risks, making it an attractive option in a volatile market.

In Q1 2025, MercadoLibre reported $5.9 billion in revenue, a 37% increase year-over-year, and a 44% rise in net income to $494 million. Despite its growth, the stock’s P/E ratio of 63 is reasonable compared to peers like Amazon and Sea Limited, suggesting it’s not overvalued. MercadoLibre’s ability to address regional challenges, such as providing financial services to the unbanked, enhances its antifragility and long-term growth potential.

Key Takeaways for MercadoLibre

• Strengths: Strong revenue growth, minimal tariff exposure, and diversified business model.


• Risks: Regional economic challenges in Latin America could impact growth.


• Investment Advice: A compelling buy for investors seeking growth in emerging markets.

Netflix Stock: A Streaming Giant with Strong Fundamentals

Netflix (NFLX) has climbed 33% year-to-date in 2025, recovering from a 19% correction earlier in the year. With a global audience exceeding 700 million, Netflix’s fundamentals are robust, boasting a record-high profit margin of 23% in Q1 2025, nearly double its margin from two years ago. This top-performing tech stock 2025 benefits from a growing ad-supported tier and a strategic price hike in January 2025, the first since 2022, signaling confidence in subscriber retention.

Netflix’s diverse content, including live sports, strengthens its appeal to advertisers and subscribers alike. Trading at nearly $1,200 per share, the stock’s upward trajectory suggests further growth potential as it continues to scale profitability.

Key Takeaways for Netflix

• Strengths: Massive global audience, increasing profit margins, and successful price hikes.


• Risks: Competition in the streaming industry could pressure subscriber growth.


• Investment Advice: A strong buy for investors seeking stable growth in the tech sector.

Why These Nasdaq-100 Stocks Stand Out in 2025

Despite a flat Nasdaq-100 index, Palantir Technologies, MercadoLibre, and Netflix have delivered exceptional returns, driven by strong fundamentals and market resilience. Here’s why they remain noteworthy:

• Palantir Technologies: Its AI-driven solutions cater to a growing market, but its high valuation warrants caution.


• MercadoLibre: Minimal U.S. exposure and diversified revenue streams make it a tariff-resistant growth stock.


• Netflix: A massive audience and strategic price increases position it for continued profitability.

Should You Invest in These Top-Performing Tech Stocks in 2025?

Deciding whether to invest in top-performing tech stocks 2025 like Palantir, MercadoLibre, and Netflix depends on your risk tolerance and investment horizon. Palantir’s lofty valuation suggests waiting for a pullback, while MercadoLibre and Netflix offer compelling opportunities due to their reasonable valuations and strong growth prospects. Always conduct thorough research and consider diversifying through Nasdaq-100 ETFs, such as the Invesco QQQ ETF, to mitigate risk while gaining exposure to these high-performing stocks.

FAQs

Are Palantir Technologies, MercadoLibre, and Netflix good investments in 2025?

• MercadoLibre and Netflix are considered strong buys due to their growth potential and reasonable valuations. Palantir, however, may be overvalued, suggesting a cautious approach.

Why has Palantir Technologies stock surged in 2025?

• Palantir’s 64% year-to-date gain is driven by its AI platform and growing commercial and government contracts, though its high valuation raises concerns.

What makes MercadoLibre a top-performing tech stock?

• MercadoLibre’s 54% gain in 2025 stems from its diversified business model and minimal U.S. tariff exposure, making it a resilient investment.

How is Netflix performing in 2025?

• Netflix’s 33% year-to-date gain is supported by a 700-million-strong audience, a 23% profit margin, and strategic price hikes, positioning it for further growth.

Conclusion: Navigating the Nasdaq-100 in 2025

The top-performing tech stocks 2025—Palantir Technologies, MercadoLibre, and Netflix—have outperformed the Nasdaq-100, delivering gains of 33% to 64%. While MercadoLibre stock and Netflix stock remain attractive buys due to their growth and valuations, Palantir Technologies stock requires caution due to its premium pricing. Investors should weigh these factors and consider market conditions before making decisions. For diversified exposure, Nasdaq-100 ETFs offer a balanced approach to capturing tech sector growth.