Meta, IBM, Palo Alto Networks: Why Stephanie Link Is Doubling Down On These Tariff-Proof Tech Titans

As tariffs and trade war chatter send shivers down tech's spine, Stephanie Link of Hightower Advisors sees opportunity – especially in software and services names with recurring revenue and minimal exposure to global shocks.

"This actually signals a decent time to buy if you're a long-term shareholder," she said, pointing to three tech heavyweights she's adding to this week: Meta Platforms Inc META, IBM IBM and Palo Alto Networks Inc PANW.

Meta's AI Moat Is Still Wide

Meta might be down 33% from its highs, but Link views the slump as a gift. At 20x earnings, the stock looks cheap given its 20% total revenue growth and commanding 40% operating margins.

With 3.3 billion users and $85 billion earmarked for AI spending this year alone, Meta's scale and automated ad growth—up 77% to $20 billion last quarter—make it a core AI beneficiary with limited tariff risk.

IBM's Quiet Reinvention Pays Off

IBM, meanwhile, has been reshaping itself under CEO Arvind Krishna. With only 1% exposure to reciprocal tariffs (compared to Apple Inc's AAPL 43%), IBM has leaned into software and services, which now make up 75% of its revenue mix.

The company is on a deal spree – 39 acquisitions in AI, data center, blockchain and cloud—signaling aggressive transformation.

Palo Alto Networks: Cybersecurity's Crown Jewel

And then there's Palo Alto, where Link sees an even bigger trend than AI – cybersecurity. Palo Alto's next-gen security offerings are growing 30% annually, and its firewall business is holding strong in double digits.

With consolidation driving demand for platform solutions and free cash flow margins at 37%, Link says it's a must-own in a sector where bigger is better.

For Link, it's all about sticking with resilient business models that don't flinch in the face of tariffs or tech turmoil. As uncertainty rattles markets, her picks reflect a clear theme – betting on scalable, software-heavy giants that are quietly winning the long game.

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