Amazon stock has outperformed the S&P 500, rising 57% due to AI investments and digital advertising

From Nasdaq: 2024-08-24 05:10:00

The S&P 500 has experienced a significant rise of about 55% since October 2022, driven by easing inflation and the rise of AI. Companies across tech are seeing major gains from investments in artificial intelligence, making it a good time to consider investing in the bull market. Amazon stock has risen 57% during this period, outperforming the S&P 500.

Amazon is enhancing its entire business with AI, investing heavily in expanding its cloud computing capabilities and improving customer experiences through AI tools like Rufus, an AI assistant for its e-commerce site. The company is also making strides in digital advertising, adding ads to its Prime Video service and diversifying revenue streams.

Despite seeing a 33% increase in its stock price over the past year, Amazon remains an attractive investment option with strong growth prospects. The company’s relatively high price-to-earnings ratio of 42 is offset by its potential for future growth, as evidenced by its price-to-sales ratio and historical stock performance. Consider exploring other investment opportunities to maximize returns in the current market.



Read more at Nasdaq: The Bull Market Keeps Growing. 3 Reasons to Buy Amazon Like There’s No Tomorrow.