Wall Street has experienced a strong rebound in 2023, with major market indexes climbing at least 20% from their lows, leading to optimism about the beginning of the next bull market; investors are advised to consider buying Alphabet and Amazon due to their strong performance, dominance in their respective industries, and attractive valuations.
Analysts suggest that Wall Street is underestimating Amazon's stock due to the company's improved e-commerce fulfillment capabilities and potential for margin growth, as well as its resilient Amazon Web Services cloud business.
Investors are bullish on the market in 2023, with the Nasdaq Composite up 30% and two leading ultra-growth stocks, Amazon and Apple, poised to benefit from improving market conditions and their strong positions in multiple industries.
Apple's stock is on track to snap a seven-month winning streak, despite a 6.3% rally over the past two weeks, as concerns over declining smartphone demand continue to affect the technology behemoth.
Amazon closed out six consecutive months of gains, marking its longest winning streak since July 2011, with the stock rising 3.2% in August and gaining $423.7 billion in market cap since the streak began, fueled by its recent partnership with Shopify.
Nvidia and Amazon, both of which recently underwent stock splits, are positioned for long-term growth in the AI industry due to their focus on infrastructure and strong economic moats, with Amazon being the safer pick due to its diversified business model and cost-cutting efforts.
Summary: Many investors are predicting a new bull market for the S&P 500, and while it has yet to reach a new high, it is only 7% away; three stocks to consider buying are Amazon, which has a strong presence in the logistics market and opportunities in AI, Mastercard, which benefits from its business moat and growth in emerging markets, and Vertex Pharmaceuticals, which has potential catalysts in its pipeline and an attractive valuation.
Amazon stock rallied 3.52% as the overall stock market had a great trading session, with the S&P 500 and the Dow Jones Industrial Average also rising.
Amazon stock gained 3.5% and is approaching a buy point, with a 69% increase this year to outpace the Nasdaq and S&P 500, making it one of the top stocks in the Magnificent 7.
Amazon's efforts to improve profitability have been praised, with its stock potentially seeing further upside if its North American retail business continues to become more profitable, according to a research note from Morgan Stanley.
Despite still being in a bear market, Amazon's stock is thriving in 2023 due to its acquisitions, strength in core activities, and attractive price, making it an opportune time to invest.
Despite seeing decent share price growth in the past few months, Amazon.com is currently trading at a fair value, with its future earnings expected to double, indicating a positive outlook for the company.
Summary: While the ups and downs of the stock market can be frustrating, history has shown that investing in strong companies like Amazon can lead to significant returns, while companies like Peloton face uncertain long-term growth prospects.
Amazon's stock had a slight decline of 0.29% on Monday, while the overall stock market experienced positive gains.
