Artificial intelligence (AI) promises to be one of the most revolutionary technologies in human history. It is already improving productivity, increasing efficiency, and changing the world in ways we cannot yet imagine. More changes are expected but will take time, and naysayers will call AI overhyped along the way. But some people also called the internet overhyped following the dot-com fiasco.
I am not saying AI is impervious to irrational exuberance, but it still has real potential to create wealth for patient investors. Consider this commentary from Microsoft co-founder Bill Gates: “The development of AI is as fundamental as the creation of the microprocessor, the personal computer, the internet, and the mobile phone.”
Opportunities like that come along once in a decade. I believe (like Gates) that this latest round of advancements in AI is the next big opportunity, and the most prudent way for investors to benefit is to build a basket of AI stocks.
Let’s look at why two particular stocks, Amazon (AMZN 0.21%) and CrowdStrike Holdings(CRWD -1.74%), belong in that basket.
1. Amazon: A leader in cloud AI developer services
The investment thesis for Amazon is compelling even if artificial intelligence (AI) is excluded from the calculus. The company operates the most visited online marketplace in the world, Amazon is the third-largest ad tech company in the world, and Amazon Web Services (AWS) is the leader in cloud computing, with nearly as much market share as Microsoft Azure and Alphabet‘s Google Cloud combined.
So what? Retail e-commerce sales are expected to increase at 8% annually through 2030, while the ad tech and cloud computing markets are forecast to expand at roughly 14% annually during the same period. That hints at low-double-digit revenue growth for Amazon through the end of the decade, which makes its current valuation of 2.5 times sales look quite reasonable.
But Amazon could grow more quickly as it leans into AI, a market expected to increase at 37% annually through 2030, and investors have good reason to think the company will be successful. Earlier this year, Gartner recognized AWS as a leader in cloud AI developer services, and Argus analyst Jim Kelleher recently said the company is uniquely positioned in the nascent AI services space given its leadership in the broader cloud computing market.
Amazon CEO Andy Jassy expressed a similar opinion on the latest earnings call: “People want to bring generative AI models to the data, not the other way around. AWS not only has the broadest array of storage, database, analytics, and data management services for customers, it also has more customers and data stores than anybody else.”
Building on that, AWS also offers the broadest and deepest portfolio of AI services in the cloud, and the company recently reinforced its offering with Amazon Bedrock. That service, which became generally available in September, allows businesses to customize pre-trained large language models for the purpose of tailoring generative AI applications to specific use cases.
Here’s the bottom line: Amazon is already growing at a steady clip — second-quarter revenue increased 11% to $134 billion and GAAP net income improved to $6.7 billion, up from a loss of $2 billion in the prior year — and the stock trades at a reasonable valuation given its prospects in e-commerce, ad tech, and cloud computing. But if AI services become a significant revenue stream in their own right, shares may appear materially undervalued in hindsight. Either way, now is a good time to buy this growth stock.
2. CrowdStrike: A leader in AI-powered cybersecurity
Software vendor CrowdStrike offers over two dozen cybersecurity modules that span multiple industry verticals, and the company has earned a leadership position in many of those markets. That includes endpoint security, cloud security, threat intelligence, and managed security services, among other categories. Superior AI is the foundation of that success.
The CrowdStrike Falcon platform was engineered to collect data on a hitherto unheard of scale, and each data point makes its AI models a little better at detecting threats. To quote consultancy Frost & Sullivan: “CrowdStrike leads the industry with regards to the application of artificial intelligence/machine learning to endpoint security.” The report goes on to say CrowdStrike offers unparalleled prevention of malware and (more sophisticated) malware-free attacks.
CrowdStrike reported solid financial results in the second quarter. Revenue climbed 37% to $732 million as new customers deployed the platform and existing customers adopted more modules. In turn, its GAAP gross profit margin expanded 130 basis points to 75%, and non-GAAP net income soared 110% to $180 million. Investors have good reason to believe that momentum will carry into future quarters. Cybercrime is forecast to become increasingly costly in the years ahead, and CrowdStrike is executing on its strong growth strategy.
Most notably, the company introduced its generative AI assistant (Charlotte AI) earlier this year, a natural language interface that allows users to surface insights, automate security workflows, and accelerate threat detection and remediation. Morgan Stanley sees CrowdStrike as one of four cybersecurity vendors best positioned to benefit from generative AI, and analysts anticipate annual revenue growth of 24% over the next two years.
That forecast makes its current valuation of 16.9 times sales look reasonable, especially when the three-year average is 31.6 times sales. That’s why risk-tolerant investors should add a small position in CrowdStrike to their basket of AI growth stocks.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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.com and CrowdStrike. The Motley Fool has positions in and recommends Alphabet, Amazon.com, CrowdStrike, 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.
