The Motley Fool·2025-03-11 14:26Market Overview - The Nasdaq Composite has entered correction territory, down over 9% year to date and approximately 13% since its high on December 16 [1] Investment Opportunities - Despite the correction, it presents an opportunity to buy top stocks at a relative discount [2] Company Analysis: Amazon - Amazon's stock was down 11% in 2025, but the decline is not due to fundamental changes in its business [3] - Amazon's international segment improved significantly, moving from an operating loss of $2.7 billion in 2023 to an operating income of $3.8 billion in 2024, indicating better global operations [4] - Amazon Web Services (AWS) is a key growth driver, with significant enterprise deals signed, including PayPal, Intuit, and Reddit [5] - The cloud industry is expected to grow, with Amazon planning to spend $100 billion in 2025, primarily for AWS growth [6][7] Company Analysis: Microsoft - Microsoft's stock was down roughly 10% year to date and close to 19% from its July 2024 high [8] - Microsoft has a diversified business model, integrating itself into corporate operations through products like Microsoft Office, Azure, and LinkedIn [9][10] - In Q2 of fiscal year 2025, Microsoft generated $69.6 billion in revenue (up 12% year over year) and an operating income of $31.7 billion (up 17% year over year) [11] - The large number of enterprise clients provides stability during economic downturns, as their products are essential for business operations [12] - Microsoft has a strong cash position of $71.5 billion, allowing it to weather economic challenges [13] - Recent stock drops provide an opportunity for investors to acquire shares of a leading company at a more attractive price [14]