Well, it happened: After about two years of Semismooth sailing, Nasdaq entered the correctional field. One of the stock market’s main indexes, NASDAQ Composite, fell by more than 9% on March 10, about 13% since it hit a high on December 16th.
The current fix is not a complete surprise, but it’s not an easy digest of looking at many famous strains and major indexes in red.
^ixic data by YCHARTS.
Nasdaq is currently being rectified, but the news isn’t all bad. This gives you the opportunity to buy some of the top stocks in the stock market at relative discounts. The next two Nasdaq stocks have gone down significantly this year, but they are still a major investment for the next decade or more.
1. Amazon
Until March 10th, Amazon’s (amzn 1.05%)) Stocks fell 11% in 2025. The good news is that the decline is not directly caused by radical changes in Amazon’s business.
When I’m looking for a company I want to invest in for over a decade, I’m looking for a company with a diverse business model. Although Amazon’s e-commerce business is located in the bread and butter, the cloud platform, Amazon Web Services (AWS), and emerging advertising businesses for long-term growth.
Here, while I don’t focus much on Amazon’s e-commerce business, I would like to highlight the progress made internationally. In 2023, Amazon’s international segment operating loss was $2.7 billion. In 2024, the script was turned over with operating profit of $3.8 billion. This is a sign that the company will begin to improve its global operations and become an even more international powerhouse.
Amazon’s true growth driver is AWS. It is profit machines that will continue to drive Amazon’s expansion, and the momentum should continue as AWS signs more enterprise transactions. Amazon said AWS has recently brought major enterprise customers such as PayPal, Intuit and Reddit.
The cloud industry continues to grow as it adopts cloud technology, and with the exception of unexpected hurdles, AWS should continue to be the leader in the pack. The majority of the $83 billion spent on capital expenditure in 2024 is dedicated to AWS growth, and much of the $100 billion planned to spend in 2025 is probably the same.
The willingness to spend and reinvest in this business is essential to Amazon’s long-term success.
AMZN capital expenditure (annual) data by YCHARTS.
2. Microsoft
Microsoft (msft 0.08%)) He was a high-tech titan for decades, but he has no immunity to a slump. Until March 10th, its inventory fell by about 10% per year, down nearly 19% from its July 2024 high.
Microsoft may be an example of a diverse business textbook in the technology world. It includes enterprise and consumer software, hardware, cloud computing, gaming and social media. But it’s not just the amount of Microsoft’s business cover that matters. It’s the way it integrated itself into the fabric of the corporate world.
Between Microsoft Office, PCS, Windows Operating System, Azure, Microsoft Copilot, LinkedIn, and Dynamics 365, Microsoft promotes the day-to-day operations of many businesses. It is key to its sustainable success and economic stability.
In the second quarter of 2025 (ends January 31), Microsoft generated $69.6 billion (up 12% year-on-year), operating profit increased 17% year-on-year to $31.7 billion. Both of these growth numbers are impressive considering the size of Microsoft’s business.
MSFT revenue (quarterly) data from YCHARTS.
Many Microsoft enterprise clients act as buffers in a rough economic era, as their products are essential to their businesses. It’s much easier for businesses to cut marketing than withholding cloud services, software subscriptions, or employee hardware.
When investing over the long term, you want a company whose trajectory remains positive regardless of hiccups along the way, and that’s Microsoft. It is essential to the corporate world, with a fast-growing cloud business and $71.5 billion in cash, cash equivalents and short-term investments that will help you survive virtually any storm.
Microsoft stocks are traditionally expensive by most standards, but recent declines allow investors to take advantage of scooping up one of the world’s top companies.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of Motley Fool’s board of directors. Stefon Walters has a job at Microsoft. Motley Fool has been working and recommends Amazon, Intuit, Microsoft and PayPal. Motley Fool recommends the following options: A call of $395 on length Microsoft for January 2026, a call of $42.50 on PayPal in January 2027, a call of $405 on short term Microsoft for January 2026, a call of $85 on short term PayPal in March 2025. Motley Fools have a disclosure policy.
