In January 2025, tech stocks faced significant declines, with the Technology Select Sector SPDR Fund (XLK) dropping by 2% year-to-date. The downturn was exacerbated by the introduction of a new AI assistant from Chinese startup DeepSeek, which demonstrated capabilities similar to ChatGPT, leading to market tremors, particularly for Nvidia Corp (NVDA), which lost nearly $600 billion in market cap.
Best-value tech stocks for February 2025
Value investing targets stocks priced below their intrinsic value, anticipating market correction. A low price-to-earnings (P/E) ratio often signals an undervalued stock. The following companies represent the best-value tech stocks:
Yiren Digital Ltd. (YRD): Priced at $5.51 with a market capitalization of $0.5 billion and a P/E ratio of 1.9, Yiren Digital connects investors with borrowers through its financial marketplace. The Chinese fintech firm reported a stable Q3 2024, with revenue rising by 13% year-over-year.
i3 Verticals, Inc. (IIIV): Trading at $24.97 and a market cap of $0.84 billion, i3 Verticals has a P/E ratio of 5.3. The company develops software solutions for public sectors and healthcare, recently securing a contract with Saskatchewan Province for motor carrier registration services.
Weibo Corporation (WB): With a share price of $10.06, a market capitalization of $2.4 billion, and a P/E ratio of 7.0, Weibo is a leading Chinese social media platform with 587 million monthly active users as of September 2024.
Tech stocks rebound as DeepSeek fears fade but is the AI threat over?
Fastest-growing tech stocks for February 2025
Growth investors focus on companies with increasing revenue and earnings per share (EPS), often utilizing a dual-metric approach to assess growth. The following entities are noted for their rapid growth:
Sportradar Group AG (SRAD): Priced at $20.78 with a market capitalization of $6.2 billion, Sportradar exhibited an EPS growth of 795% and a revenue growth of 28%. The company specializes in sports data analytics and betting solutions.
ODDITY Tech Ltd (ODD): At $47.43 per share and with a market cap of $2.7 billion, ODDITY recorded an EPS growth of 323% and a revenue growth of 26%. The firm utilizes AI to create innovative beauty and wellness brands.
Applovin Corporation (APP): Trading at $365.44, Applovin has a market cap of $122.6 billion, with an EPS growth of 313% and a revenue growth of 39%. The company operates an advertising platform connecting businesses with audiences.
Momentum investing aims to leverage stocks demonstrating consistent upward trends. The following stocks have shown the most momentum over the past year:
Red Cat Holdings, Inc. (RCAT): Priced at $8.82 and with a market cap of $0.71 billion, Red Cat achieved a 12-month total return of 1,226%. The drone technology company expects revenues between $80 million and $120 million in 2025, up from $17.8 million in fiscal 2024.
Quantum Computing, Inc. (QUBT): At a price of $9.95 and a market cap of $1.36 billion, Quantum Computing reported a total return of 1,176% over the last 12 months. The company focuses on developing accessible quantum computing solutions.
Exodus Movement, Inc. (EXOD): With a share price of $59.6 and a market cap of $1.6 billion, Exodus reported a 12-month total return of 983%. The company specializes in self-custodial cryptocurrency wallets, facilitating digital asset management.
In addition, the 2025 growth ratings highlight several companies exceeding revenue and earnings growth expectations:
Netcompany Group: This company achieved a 54.9% annual earnings increase, with 2024 sales reaching DKK 6.54 billion. The firm’s revenue is anticipated to grow between 5% and 10% in 2025.
Acast AB: Acast reported a 15.1% annual revenue growth with an anticipated earnings surge of 122.22% over the next three years, despite a recent transition to net loss.
IG Port, Inc.: This animation production company expects earnings to grow by approximately 25% annually, continuing to adapt and expand in a volatile market.
Apple Inc. (AAPL) currently has a stock price of $220.85 and annual revenue of $391 billion. Despite a downturn in January following reports of soft device sales in China, experts suggest that investments in Apple Intelligence may enhance its devices’ value.
Nvidia Corp. (NVDA), trading at $138.78, reported an annual revenue of $113 billion. The company’s prominence in AI demand helped its stock grow over 800% between early 2023 and early 2025.
Tesla Inc. (TSLA) holds a stock price of $413.80, with annual revenue of $97 billion. The company faces market challenges but remains focused on innovation and expansion in electric vehicle offerings.
Berkshire Hathaway Inc. (BRK.B), at $471.04 per share, reported an annual revenue of $369 billion. The firm continues to be recognized for its diversified holdings and a strong brand portfolio.
Intel Corp. (INTC) trades at $21.93, with annual revenue reported at $54 billion. Although the company has faced profitability challenges, it is working on cost management strategies for improved earnings.
Reddit Inc. (RDDT) has a current stock price of $184.66, with substantial revenue from online advertising and subscription memberships since its public listing in 2024.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
Featured image credit: Kerem Gülen/Ideogram
