An investor raising his hands in celebration while looking at stock charts on a computer.
There’s no doubt that 2022 will go down in history as one of the toughest years on record for Wall Street, but markets appear to have turned the corner. After tumbling more than 35% in 2022, the Nasdaq Composite has rebounded with a vengeance, gaining 39% thus far in 2023 (as of market close on Tuesday).
Investors who are students of history will know the surge will likely continue. As far back as 1972 — the first full year of trading for the Nasdaq — in the year following a market rebound, the tech-heavy index has generated gains of 19% on average, which suggests the current rebound will likely continue.
Furthermore, the resurgence of stock splits in recent year has investors taking a fresh look at companies that have split their shares, as the move is usually preceded by years of robust growth. One such company is Amazon (NASDAQ: AMZN). The stock has gained 677% over the past decade, causing the company to split its shares in mid-2022.
Despite recent challenges, Amazon has a history of strong performance, and the coming year will likely be no different.
Image source: Getty Images.
Late to the AI race or decades early?
Demand for generative artificial intelligence (AI) has spread like wildfire over the past year or so, with many businesses scrambling to adopt these sophisticated algorithms to reap the expected productivity windfall. These AI models have been used to draft and summarize emails, search and condense content, mine data, generate original content, and even write computer code, all of which saves users time and makes them more productive.
There’s been a lot of talk about how Amazon was late to recognize this shift and the accelerating demand for the technology, an uncharacteristic and costly miscalculation. It’s further been suggested that this allowed competitors to get the jump on Amazon, but this belies decades of evidence to the contrary.
Amazon has implemented AI in a broad cross-section of its operations over the years. It uses AI to make product…
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