Tech stocks took a hit, but MercadoLibre, Axon Enterprise, and Upstart show growth potential

From Nasdaq: 2025-03-02 05:35:00

Tech stocks took a hit on Feb. 27, with Nvidia’s earnings beating estimates but failing to offset concerns about AI sector slowdown and weakening consumer demand due to tariffs and inflation. Nasdaq Composite closed at its lowest in four months. It’s down over 8% from its peak, nearing correction territory.

1. MercadoLibre continues to thrive in any market environment, with revenue up 37% to $6.1 billion in Q4. The company benefits from growth opportunities in e-commerce and fintech in Latin America, offering various avenues for expansion, including e-commerce, fintech, advertising, and subscription services like MELI+.

2. Axon Enterprise, focused on law enforcement tech, is up 33% in revenue and expanding into new technologies like drones and AI. The company’s customer base is growing beyond law enforcement, demonstrating a strong market for body cameras in private businesses. Despite concerns, Axon remains a smart stock to buy on the dip.

3. Upstart, an AI-based lending platform, delivered a 56% revenue increase in Q4, with improved loan screening and acceptance rates. The company expects to be GAAP profitable in 2025. Despite market volatility, Upstart remains poised for a strong year ahead. Investors may want to consider buying on the dip.



Read more at Nasdaq: 3 Tech Stocks I’m Buying if the Nasdaq Enters a Correction