Should You Forget Apple and Buy These 2 Tech Stocks Instead?

Core Viewpoint - Apple faces significant challenges due to increased tariffs, leading to a nearly 30% decline in its stock since the beginning of 2025, while VeriSign and Palo Alto Networks are seen as more resilient investment options in the current environment [1][4]. Group 1: Apple - Apple generates a majority of its revenue from hardware products manufactured in Asia, making it vulnerable to tariff increases [1][2]. - The Trump administration's tariffs are expected to raise manufacturing costs and could lead to higher retail prices in international markets, impacting Apple's revenue growth and margins [2][3]. - Despite having $141 billion in cash and marketable securities, Apple's stock may continue to decline unless tariff policies are reconsidered [3]. Group 2: VeriSign - VeriSign operates the authoritative domain name registries for .com and .net, with a business model characterized by predictable growth and a wide moat [5][7]. - From 2014 to 2024, VeriSign's .com and .net registrations grew from 130.6 million to 169 million, with a revenue CAGR of 4% and an EPS CAGR of 12% [6]. - The company has faced regulatory scrutiny, but recent agreements with the U.S. government have alleviated these concerns, and its business is not significantly impacted by tariffs [8]. - Analysts project a 9% EPS growth for VeriSign in 2025 and a reasonable valuation at 27 times forward earnings [9]. Group 3: Palo Alto Networks - Palo Alto Networks is a leading cybersecurity company with over 80,000 enterprise customers, offering services across three main ecosystems: Strata, Prisma, and Cortex [10]. - The company has experienced a revenue CAGR of 30% from fiscal 2014 to 2024, driven by its next-gen security services [11]. - Palo Alto's business is insulated from tariffs as clients prioritize digital security, and its platformization strategy enhances its competitive position [12]. - Analysts expect a revenue CAGR of 15% from fiscal 2024 to 2027, with EPS growth projected at 24% over the following two years despite a dip in fiscal 2025 [13].