2 Top Tech Stocks to Buy Right Now

After a very tough start to the year, tech sector stocks are back. The tech-heavy Nasdaq Composite index dipped as much as 24% from highs set earlier this year. However, in recent weeks, the index has rallied significantly, erasing nearly all of those losses and pulling back to even for 2025.

Given this market recovery, those looking to invest in tech stocks are now wondering what stocks are worth considering when the market is trading near all-time highs. There are two tech stocks that I would strongly consider right now. Here's why.

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1. Spotify Technology

First up is Spotify Technology (NYSE: SPOT). As of this writing, Spotify stock is up 50% year to date, making it one of the top-performing stocks so far in 2025. Indeed, over the last three years, Spotify is up more than 477%.

What's behind this excellent performance? And why do I think the stock will continue to beat the market? There are three main reasons for the company's success.

First, Spotify boasts a strong competitive moat. By creating personalized playlists and honing its suggestions based on its users' likes and dislikes, Spotify gives its customers what they want when they want it. In addition, with over 675 million monthly average users, Spotify now benefits from a significant network effect, where people can easily connect with others to share new tracks and playlists. Consequently, Spotify users are less likely to leave the platform once they have built out their musical preferences and connected with friends.

Second, Spotify's fundamentals have improved greatly. In particular, Spotify is now a consistently profitable company -- something that couldn't be said a few years ago. Indeed, take a look at Spotify's net income by quarter, and it's clear that the company has turned an important corner. After many quarters of struggling to generate any profit at all, the company has now produced several quarters of net income in the $200 million to $300 million range. Over the last 12 months, Spotify's net income stands at $1.3 billion.

Spotify's management is the last key piece to the puzzle. CEO Daniel Ek deserves credit for Spotify's performance. In 2022, Ek prioritized profitability by slashing costs while still focusing on growth. He's both the founder and CEO of the company; his capable leadership and solid track record are more reasons investors should have confidence in Spotify.

2. Meta Platforms

Then there's Meta Platforms (NASDAQ: META). Here, too, there are three aspects of Meta's stock and its business that I find particularly appealing.

First off, Meta is a leader in digital advertising. The company generates a staggering $170 billion in annual revenue, and around 97% of that revenue comes from ad revenue generated by its social media platforms like Facebook and Instagram. What's more, the digital advertising sector continues to grow at a strong pace. Statista estimates that by 2030, fully 80% of all advertising will be digital, amounting to around $1.2 trillion worldwide. That would represent an increase in digital ad spending of roughly 50% over the next five years.

Second, Meta is a leading artificial intelligence (AI) company, too. It has invested billions in AI infrastructure, which is already generating returns for the company by improving ad strategies and return on investment (ROI) for advertisers on its platforms, which, in turn, drive higher ad rates. As Meta continues to invest in AI, higher platform engagement and additional (perhaps paid) features could help drive higher revenue and profitability for the company.

Lastly, because of its prominent place within the digital advertising food chain and its AI initiatives, Meta's fundamentals are some of the best within the tech sector. Over the last 12 months, Meta generated:

• $170 billion in revenue
• $67 billion in net income
• $52 billion in free cash flow

On top of those impressive metrics, in its most recently reported quarter, Meta bought back more than $13 billion of its own stock, reducing its overall share count and boosting the price of outstanding shares.

To sum up, Meta's business model is firing on all cylinders and its stock boasts excellent fundamentals. Investors looking for a strong tech stock with fantastic prospects should strongly consider Meta.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Spotify Technology. The Motley Fool has positions in and recommends Meta Platforms and Spotify Technology. The Motley Fool has a disclosure policy.