The Nasdaq Composite(NASDAQINDEX: ^IXIC) technology index was down by as much as 24% from its all-time high in April, placing it in a bear market. The sell-off was triggered by President Donald Trump's "Liberation Day" tariffs, which sparked fears of a sharp economic slowdown.
But several countries are negotiating new trade deals with the U.S. right now, and some optimism is creeping back into the market. The Nasdaq Composite has cut its losses to just 11%, and a new bull market will officially begin if it can carry this momentum to set a new record high. Throughout history, the index has always fully recovered given enough time.
Still, considering the ongoing uncertainty, investors might want to buy stocks that have limited exposure to tariffs and global trade tensions. Here are three great options to consider.
Image source: Getty Images.
1. Meta Platforms
Meta Platforms(NASDAQ: META) is the parent company of social networks like Facebook, Instagram, WhatsApp, Messenger, and Threads. It generates almost all of its revenue by selling digital advertising slots on those platforms, which aren't subjected to tariffs. But the company could be vulnerable if trade tensions drive an economic slowdown and force businesses to trim their marketing budgets, which is one risk to keep in mind.
With that said, Meta is leaning on technologies like artificial intelligence (AI) to fuel its growth. In the company's conference call with investors for the first quarter of 2025, CEO Mark Zuckerberg said its AI-powered content recommendation algorithm led to a 7% increase in the amount of time users were spending on Facebook over the prior six months, and a 6% increase for Instagram. This is key because the longer each user spends on those social networks, the more ads they see, and the more money Meta makes.
But Meta is also using AI to create new products. The company launched the Meta AI virtual assistant last year, and it already has nearly 1 billion monthly users. It's accessible via all of the company's social platforms, where it can answer questions on almost any topic, and even generate images. Meta AI is powered by Meta's Llama family of open-source large language models, which have become some of the most intelligent in the entire industry.
Meta is confident that AI can drive its long-term growth, so it plans to spend up to $72 billion on data center infrastructure during 2025 to fuel further development. It increased that forecast from $65 billion previously, so Zuckerberg and his team don't appear to be concerned about the ongoing trade tensions.
Meta generated record revenue and earnings last year, and it's on track to build on that success in 2025. To top things off, it's one of the most attractively valued large-cap technology stocks right now.
2. Spotify
Spotify(NYSE: SPOT) is the world's largest music streaming platform. At the end of the 2025 first quarter, it had 423 million free users who are monetized through advertising, and 268 million Premium members who pay a monthly subscription fee for an ad-free experience, and to access additional features. Neither of those revenue streams are subjected to tariffs at this stage, but the company also operates in 180 countries so it's insulated against the trade policies of any single nation.
The music streaming business is highly competitive, so investing heavily in technology is one way Spotify differentiates its platform. The company has developed a series of AI-powered features like AI Playlist, which can generate a list of songs based on a prompt from the user -- whether it's a mood, a feeling, a color, or even an emoji. AI Playlist is only available with the Premium subscription, so it's one way Spotify entices free users to become paying users.
Spotify also invests heavily in other content formats to separate itself from the competition, like podcasts and audiobooks. It recently launched a new monetization scheme for creators to encourage them to make more video podcasts, because users spent 44% more time watching video content during the first quarter compared to the year-ago period, and the company wants to capitalize on that trend.
Spotify stock isn't cheap right now, but Wall Street's consensus forecast (provided by Yahoo! Finance) suggests its earnings per share could soar by 64% this year, which makes its valuation a little more attractive on a forward basis. But investors who buy Spotify stock today should focus on the longer term, because CEO Daniel Ek believes the company can grow its annual revenue fivefold to $100 billion by the year 2032, which could lead to significant returns.
3. Netflix
Spotify dominates the music streaming business, but Netflix(NASDAQ: NFLX) is at the top of the streaming industry for movies and TV shows. Plus, it operates in more than 190 countries so it also has a highly diversified revenue stream, which is helpful amid the ongoing global trade tensions.
Netflix doesn't offer its streaming services for free, so all users are paying a monthly fee in some capacity. The company no longer reports its subscriber numbers, but it had 301.6 million members at the end of 2024, placing it far ahead of Amazon Prime with around 200 million, and Disney's Disney+ with 124.6 million.
The Netflix advertising tier has been a huge source of growth for the company. It's priced at $7.99 per month, making it significantly cheaper than the ad-free Standard tier ($17.99 per month) and the Premium tier ($24.99 per month). Each ad-tier member can grow infinitely more valuable over time as businesses grow their marketing spending on Netflix. The company said its ad revenue doubled in 2024, and is on track to double again this year.
Netflix is tackling a $650 billion addressable market across streaming subscriptions, advertising, and even gaming, and it had only captured 6% of it at the end of 2024 based on its total revenue of $39 billion for the year. Therefore, even though its stock is trading at a record high, it has a lot of room for potential upside over the long term.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Netflix, Spotify Technology, and Walt Disney. The Motley Fool has a disclosure policy.
