Palantir, VeriSign, and CrowdStrike stand out as top tech performers maintaining strength amid broader sector weakness.
Here’s why these companies are outperforming and what could propel them to new heights.
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As the technology sector navigates a challenging market downturn in 2025, with investor concerns over tariffs, Federal Reserve policies, and profit-taking weighing on the , certain companies have demonstrated remarkable resilience.
Source: Investing.com
Palantir, VeriSign (NASDAQ:), and CrowdStrike (NASDAQ:) stand out as tech stocks holding up better than their peers, driven by strong fundamentals, unique market positions, and favorable tailwinds.
This article explores why these companies are outperforming and the factors expected to propel their stock prices back to, or beyond, their all-time highs.
1. Palantir
Year-To-Date Performance: +42.5%
Market Cap: $252.8 Billion
Palantir Technologies (NASDAQ:), a leader in big data analytics and artificial intelligence, has seen its stock price surge approximately 42% year-to-date, even as the Nasdaq has declined by 11%. PLTR shares hit an all-time high of $125.41 on February 19, and despite a pullback, it remains well-positioned for further gains.
Source: Investing.com
The company’s ability to capitalize on unrelenting demand for artificial intelligence (AI) solutions has insulated it from broader market pressures. Unlike many tech firms impacted by tariff fears, Palantir’s software-centric model is less vulnerable to supply chain disruptions, making it a safe haven for investors.
Additionally, its strong ties to U.S. government priorities and AI-driven cost efficiencies position it as a potential defensive stock during economic uncertainty. Recent contracts, such as a $67 million deal with a major U.S. pharmacy and NATO’s adoption of Palantir’s AI-enabled Maven Smart System, underscore its growing influence.
For Palantir, while specific financial health scores aren’t provided in the context, analysts note the company has “GREAT” financial health according to InvestingPro.
Source: InvestingPro
Analysts project 31% revenue growth for 2025, driven by continued AI adoption and expanding commercial pipelines. The company’s guidance for Q1 2025 projects revenue between $858 million and $826 million, with adjusted operating income of $354 million to $358 million, signaling sustained momentum.
2. VeriSign
Year-To-Date Performance: +22.1%
Market Cap: $23.8 Billion
VeriSign, a lesser-known but critical player in the tech ecosystem, has shown remarkable resilience due to its monopoly-like position in managing the .com and .net domain name registries. VRSN stock is trending back towards its all-time high of $258.67 reached on April 3 as market sentiment stabilizes.
Source: Investing.com
VeriSign’s defensive characteristics—consistent cash flows and minimal exposure to tariff-related disruptions—make it a reliable performer amid the current market environment. This business model generates stable, recurring revenue, shielding VeriSign from the volatility affecting other tech stocks.
The global expansion of internet usage, particularly in emerging markets, and the increasing demand for secure domain services amid rising cyber threats are key tailwinds. Additionally, its share repurchase program, with $1.14 billion remaining as of December 2024, supports shareholder value and stock price stability.
VeriSign maintains a ‘GOOD’ overall financial health score of 2.95, with exceptional strength in profitability (4.62) – the highest among the three companies. Its price momentum score is solid at 3.52, while cash flow earns a respectable 3.00.
Source: InvestingPro
The company’s 2025 guidance projects revenue of $1.64 billion to $1.66 billion, a 4.5%-5.7% increase, and an operating margin of 65.5%-66.5%, demonstrating its ability to grow even in challenging conditions.
3. CrowdStrike
Year-To-Date Performance: +21%
Market Cap: $102.6 Billion
CrowdStrike has defied expectations by recovering swiftly from a global IT outage caused by a botched update in July 2024, with CRWD stock up 21% year-to-date in 2025 and trading near all-time highs. Like Palantir, its software-focused business model mitigates tariff-related risks, aligning with investor preference for safer tech sectors.
Source: Investing.com
CrowdStrike’s resilience stems from the growing cybersecurity market, projected to reach $250 billion by 2029, driven by rising cyber threats and AI-powered security solutions. The company’s cloud-native Falcon platform, powered by AI, delivers advanced endpoint security and threat intelligence, making it a go-to vendor in the cybersecurity space.
Not surprisingly, analysts maintain a “Strong Buy” rating for CrowdStrike, with a mean price target suggesting potential upside from current levels.
CrowdStrike also earns a ‘GOOD’ overall financial health rating of 2.57, with its strongest attributes being price momentum at 3.63 and impressive growth metrics at 3.45, complemented by robust cash flow performance at 2.82.
Source: InvestingPro
Analysts expect Q3 FY2025 revenue of around $982 million, indicating 25% growth. As the cybersecurity market grows and CrowdStrike rolls out innovative offerings, the stock is well-positioned to maintain its highs and potentially set new records.
Conclusion
Palantir, VeriSign, and CrowdStrike are proving their mettle in a turbulent tech market, each leveraging unique strengths to outperform their peers. Palantir’s AI-driven growth and government ties, VeriSign’s stable domain registry monopoly, and CrowdStrike’s cybersecurity leadership make them resilient amid the 2025 downturn.
Investors seeking tech exposure with defensive qualities and growth potential may find these names compelling opportunities in an uncertain market.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
