Wall Street is fired up about artificial intelligence (AI). Wedbush Securities analyst Dan Ives recently called it the fourth industrial revolution — the other three were brought on by technologies like steam power, electricity, and the internet — and he conservatively expects $1 trillion in incremental spending over the next decade.
Ark Invest is even more bullish. Analysts led by Cathie Wood believe AI could be more impactful than the internet, and the firm estimates AI software revenue could reach $14 trillion by 2030, up from $1 trillion in 2021. Former Microsoft CEO Bill Gates expressed a similar conviction, saying that AI is the most transformative technology he has seen in decades.
All signs point to AI changing the course of human history. There will be ups and downs along the way, and naysayers will use the word “bubble,” but some people said the same thing about the internet following the dot-com fiasco in 2000. A decade from now, I believe investors will look back and see AI as a once-in-a-generation opportunity. The most prudent way to benefit is to build a basket of AI stocks today.
Here’s why Amazon(AMZN 0.64%) belongs in that basket.
Amazon has a strong presence in e-commerce and retail advertising
Amazon has three important growth engines in its e-commerce, digital advertising, and cloud computing businesses. The company already enjoys a strong presence in each market, but strategic investments in artificial intelligence (AI) products and fulfillment infrastructure lay the groundwork for continued share gains in the future.
In e-commerce, Amazon is the most-visited online marketplace in the world. It will account for nearly 39% of online retail sales in Western Europe and North America this year, according to eMarketer. One reason for that success is its expansive logistics network, which lets the company offer fulfillment services to merchants and timely shipping to buyers. Amazon recently moved to a regional fulfillment model that lowers costs and improves delivery times, according to CEO Andy Jassy.
Success in e-commerce gave rise to a thriving ad tech business. Amazon dominates the U.S. retail advertising market, eclipsing the share of its closest competitor by tenfold, and it recently became the third-largest ad tech company in the world. Amazon will bring ads to Prime Video next year to boost growth, and it recently launched an AI-powered image generation tool that simplifies the creation of marketing content.
Amazon Web Services is a leader in cloud AI developer tools
Amazon Web Services (AWS) is the long-standing leader in cloud infrastructure and platform services, and it offers the broadest and deepest suite of AI products on the market. Indeed, consultancy Gartner recently recognized AWS as a leader in cloud AI developer services. That alone positions the company as a long-term winner from AI transformation, but AWS is leaning into the technology with new products like Bedrock and CodeWhisperer.
Bedrock is a cloud service offering customizable large language models that allow businesses to build generative AI applications tailored to specific use cases, such as answering questions or automating workflows. Similarly, CodeWhisperer is a generative AI companion that accelerates software development by automating portions of the coding process. Andy Jassy called each product a “game changer for developers.”
Amazon stock trades at a historically cheap valuation
Amazon reported solid financial results in the third quarter. Revenue rose 13% to $143 billion and GAAP net income more than tripled to reach $9.9 billion. Investors can expect similar growth in the future as the company leans into cost optimization in retail and AI product development in cloud computing.
Looking forward, retail e-commerce sales are forecasted to increase at 8% annually through 2030, during which time the ad tech and cloud computing markets are projected to increase at 14% annually. Meanwhile, Grand View Research expects the AI market to expand at 37% annually through the end of the decade. Collectively, those estimates give Amazon a good shot at double-digit revenue growth for many years to come.
Indeed, Morningstar analyst Dan Romanoff expects the company to grow revenue at 11% annually through 2027, a reasonable estimate that leaves room for upside if AWS sees a material acceleration in growth brought on by the AI boom. Either way, the current valuation of 2.8 times sales seems reasonable, especially when the three-year average is 3.1 times sales. That’s why this growth stock is a sensible addition to a broader basket of AI stocks.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
