Amazon share price rose to $192.70 up by around 3.4%, giving the e-commerce giant a market value of over $2 trillion. This valuation puts Amazon in the same club as technology heavyweights Microsoft Corp, Apple Inc., Nvidia Corp and Alphabet. 

Amazon stock rally

Amazon shares have whipsawed since the company’s Q1 earnings, when the cloud unit posted the strongest sales growth in a year. This helped the Amazon stock back above the all-time high set in April. The stock rallied in June, recovering losses from the end of May to gain about 27% so far this year.

Amazon.com Inc.’s rally pushed the tech giant deeper into record territory.

Amazon market value

The company is now a member of an elite club of a handful of peers that have surpassed the key market capitalization. Alphabet Inc. passed the $2 trillion threshold in late April, while rallies have pushed market values of Nvidia Corp., Microsoft Corp. and Apple Inc. to more than $3 trillion.

AI optimism

U.S. stock indexes have recorded robust gains this year on relentless enthusiasm around AI, optimism around resilience in the U.S. economy and potential easing of interest rates from the Federal Reserve.

Wall Street was trading near record levels, largely powered by megacap stocks such as Nvidia and Amazon, whose future cash flows stand to benefit from lower interest rates.

“Part of the good stock performance over the last six to nine months for Amazon has been related to the fact that it was oversold” at the end of 2022, said Dan Romanoff, an analyst at Morningstar Investment Service.

Amazon fifth biggest U.S. company

Shares of Amazon, which were added to the blue-chip Dow Jones Industrial Average index in February, have climbed over 26% this year. The company became the fifth biggest U.S. company by market value in February after Nvidia went up a spot.

Amazon Web Services is the largest cloud services provider in the world, and growth at the Amazon unit has returned after a dip in the past year, thanks to surging adoption of AI technologies.

The company has also invested in AI startup Anthropic and robotics firm Figure as it looks to capitalize on the AI boom.

Late last year, Amazon unveiled a new generation of custom-designed chips used in data centers, targeting applications for machine-learning training and generative artificial intelligence.

Amazon stock

Amazon shares rose as much as 3.6% to a price of $192.70 on Wednesday.

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CEO Andy Jassy credited the strong quarter to growth from AWS, in part fueled by new artificial intelligence (AI) features, as well as progress in its advertising business.

Amazon Q1 earnings

Here’s how the company did in its Q1 earning report:

Amazon earnings per share: 98 cents vs. 83 cents expected by LSEG

Amazon revenue: $143.3 billion vs. $142.5 billion expected by LSEG

Wall Street is also looking at these key numbers:

Amazon Web Services: $25 billion vs. $24.5 billion in revenue, according to StreetAccount

Advertising: $11.8 billion vs. 11.7 billion in revenue, according to StreetAccount

Cost cutting paid off

Operating income soared more than 200% in the period to $15.3 billion, far outpacing revenue growth, the latest sign that the company’s cost-cutting measures and focus on efficiency is bolstering its bottom line. AWS accounted for 62% of total operating profit. Net income also more than tripled to $10.4 billion, or 98 cents a share, from $3.17 billion, or 31 cents a share, a year ago.

Amazon’s earnings growth has been driven in part by widespread cost-cutting, tweaks to its fulfillment operations, and the stabilizing of cloud spending. CEO Andy Jassy has become more disciplined in the company’s spending, while growing profitable services like advertising, cloud computing, Prime memberships and its third-party marketplace.

The company has laid off more than 27,000 employees since late 2022, with the cuts bleeding into 2024. During the first quarter, Amazon let go hundreds of staffers in its health and AWS businesses.

Sales increased 13% from $127.4 billion a year earlier.

Amazon outlook

Amazon expects a continued surge in profitability for the Q2 but at a more measured pace. The company said operating income will be $10 billion to $14 billion, up from $7.7 billion a year earlier.

Amazon profit surges

Revenue in the current quarter is expected to be in the $144 billion to $149 billion range, Amazon said, representing growth of 7% to 11%. Analysts were expecting growth of 12% to $150.1 billion, according to LSEG.

Sales at AWS accelerated 17% in the first quarter to $25 billion, topping Wall Street’s forecast for sales growth of 12% to $24.5 billion. For the past year, growth in AWS has slowed, as businesses trimmed their cloud spend. But Amazon executives have said they’re seeing cost optimizations taper off, and they’ve indicated that demand for generative artificial intelligence can be a boon for its cloud business.

Growth in ad business

Amazon’s advertising unit saw sales surge 24%, just ahead of consensus estimates. It’s the first report since Amazon started running ads in Prime Video, a move analysts predict could generate significant revenue over time.

The company’s ad business, which grew faster than retail or cloud computing, has become an increasingly important profit driver for Amazon and has emerged as a main player in online advertising.

Revenue from third-party seller services, which includes commissions collected by Amazon, fulfillment, shipping fees and other charges, continued to surge. Sales in the unit grew 16% year over year to $34.5 billion.

Growth in market

That market overall started growing again after a brutal 2022, when brands reeled in spending to cope with inflation and rising interest rates. Meta, Snap and Google parent Alphabet all reported first-quarter results last week and showed better-than-expected revenue growth, which was primarily driven by improvements across their ad businesses.

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Fears of a recession have pushed people to reconsider their financial health and thoroughly reevaluate investment strategies. While big corporations indulge in cost cutting measures to tide over rough times, individuals and households must carefully assess their budget and plan for the future. One way to build individual wealth is to invest in stocks 2023. Carefully studying and setting money aside to purchase the best stocks for 2023, will significantly improve your financial position.

Author Napoleon Hill once said, “Both poverty and riches are the offspring of thought.” As we move into the next year, it is necessary to have both active and passive income streams. Investing a fixed amount into the FTSE 100 or the S&P 500 makes for a good start.

The Charles Schwab Foundation discovered that 65% of people with a written financial plan say they feel financially stable. Financial planning is key to managing expenses and getting over the feeling of “not having enough money.” You can even refer to financial planning books for advice on how to budget and save.

WHY INVEST IN STOCKS?

The economy has been battered by rising inflation and geopolitical instability. Households have found it tough to budget amidst economic uncertainty and supply chain issues.

The stock market tends to reflect investor feelings about the future, and this year has been anything but hopeful. Investors have seen a sharp spike in sell offs, wildly changing oil prices, and hike in interest rates affecting the economic climate. 

Although the S&P 500 rose in 2022, on the back of tech companies, by October they reflected the grim mood on the market as companies prepared for recession 2023. Overall, the S&P is down nearly 20% year-to-date, on pace for its biggest calendar-year drop since 2008.

The stock market consists of companies that provide goods and services, along with jobs that power the economy. Hence, the stock market is forward-looking. 

Economic experts believe that the best way to build wealth is to start investing, and fluctuations do not matter as long as you stay invested. 

Owning stocks in different companies can build savings, protect you from taxes, and maximize your investment potential. The key factor is to understand your risk tolerance and invest accordingly. 

Historically, long-term equity returns have been better than returns from cash or fixed-income investments such as bonds. Investors must take a long-term view while investing in stocks as the market tends to experiences ups and downs. 

Billionaire investor Warren Buffet says, “The most important quality for an investor is temperament, not intellect.”

BEST STOCKS FOR 2023

Some stocks stand the test of time. Not because those companies make the best products but because they constantly innovate and re-evaluate their priorities. Investors have been wary of IPOs, but some companies that were expected to debut in late 2022 pushed their plans into the new year. Other than the IPOs 2022, the best stocks to buy in 2023 range from tech to retail.

Stocks 2023 will help you build a profitable portfolio, as some dividend stocks give passive income while some others climb higher in value.

1. Amazon Stock

Amazon stock has always been viewed as an investment goldmine by most financial experts. More than the scale and size of the company, analysts note the tech company’s dedication towards digitization. From being a market leader in cloud computing with Amazon Web Services to solidifying its presence in healthcare with the acquisition of One Medical, Amazon is here to stay.

This year, Amazon stock has declined by about 50%, and eagle-eyed investors are snapping it up as it trades at pre-pandemic rates. Although the Amazon share price has come down, it is still on the higher-end of the spectrum.

For investors, Amazon stock makes for a good investment as the company has investments in promising players like Miller Value Partners and Markel. It also has recently launched Amazon Catalytic Capital that will invest in venture capital funds that support companies led by Black, Latino, Indigenous, women, and LGBTQIA+ founders.

Although the ecommerce giant’s stock has faced a decline this year, experts are optimistic about its future growth prospects.

As of December 27, Amazon share price stood at $85.25 per share while its 52-week high was $172.94.

Tech experts are upbeat about the company’s growth prospects and aggressive digitization, and believe that it is a good stock to hold on to for the long term.

2. Costco Stock

One of the best stocks to buy in 2023, according to financial experts, Costco is one of America’s favorite marketplaces. The company offers bulk merchandise at discounted prices and is almost the drug of choice for homemakers.

EPS stands for Earnings Per Share, and Costco has managed to grow it by 16% per year, over three years. The company stands to reap in bigger profits if it can sustain this rate of growth.

Costco Wholesale has always had loyal customers and the businesses’ resilient nature has mostly worked in its favor.

Financial planners predict that consumer spending will improve in the coming year, rendering Costco stock highly valuable. Costco’s share price is expected to climb higher as a dedicated strategy helped the company weather a tumultuous 2022.

Early December 2022, Costco’s share price fell after the retailer missed Wall Street expectations for its fiscal first quarter. The company is reportedly also wrestling with a possible membership-fee hike.

Despite falling more than 37% this year so far, Costco’s shares have solid growth potential, making it a strong buy on Wall Street.

However, some investors have expressed their concern with Costco stock as the bulk warehousing giant might underperform next year. If Costco’s growth trajectory slows or stagnates, investors might backtrack, but currently it is priced for perfection.

3. SoFi Technologies Stock

SoFi is known for its loan refinancing business. Mid-December, SoFi stock skyrocketed after its CEO Anthony Noto bought nearly $5million worth shares, boosting investor spirit.

SoFi stock has plunged over 70% this year but as the filings revealed that Noto purchased SoFi shares between December 9 and 13, experts are optimistic about the company’s growth prospects.

Noto’s confidence in the company has worked in its favor and shares were up nearly 7% after the reveal.

The financial firm now functions like a bank and can also issue loans and provide deposit services without relying on third-parties.

SoFi’s stock has been hovering around the $4.5 range and analysts expect it to climb up to around $12 by 2023. Its 52-week high stood at $16.49 on December 31, 2021.

The lending company’s stock is a growing stock, and investors can be worried about its volatility.

The student-loan moratorium has impacted demand for its student-lending products and the current economy has also affected demand for home loans.

As the company’s business model is thorough with revenue improving each year, investors are optimistic about its future performance. Despite concerns about the company’s struggle to turn a profit, many are hopeful that the stock will hold in the long term.

SoFi is well positioned to expand its services and customer base and offers multiple services under one app. Analysts expect SoFi stock to nearly triple in value from its current rate and are impressed by its 53% increase in revenue over the past year.

SoFi is one of the best stocks for 2023 if you can hold on to it.

4. Disney Stock

Global entertainment company Walt Disney functions under two main umbrellas –  Linear Networks (Disney Media and Entertainment) and Parks, Experiences and Products business.

To say Disney has faced a tumultuous year is an understatement of epic proportions. From former CEO Bob Chapek’s silence on the Florida bill to raising park prices, Disney has seen numerous changes in the last year.

To top it all, the company brought back former CEO Bob Iger to take the helm as stakeholders worried over declining profits.

While leadership controversies and spiraling earnings have cast a dark shadow on things, there is no denying that Disney parks have seen more visitors and the streaming service has added millions of subscribers. Disney+ offers both ad-supported and no-ads subscription plans and saw its subscriber base rise to over 235 million.

In the coming year, Disney has plans to grow its streaming services, with a greater focus on profitability. Iger has been signed on to spearhead the change, with a two-year contract.

As of December 2022, Disney stock (DIS) has been falling down to pre-pandemic levels and have lost nearly 52% from its all-time high of $203 in March 2021.

As of December 27, Disney stock closed at $86.37 and is expected to reach $100 by the end of 2023.

The company is facing stiff competition from Netflix in the streaming service arena, but with the easing of Covid-19 restrictions, its parks and film-releases have seen rising profits. Its most recent release James Cameron’s Avatar: The Way of Water has been going strong, nearly $900 million in global ticket sales.

Disney stock is a constituent of the S&P 500 index and is listed on the New York Stock Exchange.

5. Eli Lilly Stock

Pharmaceutical company Eli Lilly’s stock fell further this December after its earnings guidance fell short of Wall Street Expectations. But Eli Lilly stock has risen almost 35.5% this year, since the start of 2022.

Some experts believe that Eli Lilly stock is set for some pullbacks after an incredible run this year. While some others are of the opinion that it is one of the best stocks for 2023.

The main reason behind Eli Lilly’s spectacular performance in 2022 is its main drug candidate, Mounjaro. Although developed to combat Type 2 diabetes, investors have come to also see its potential as an obesity drug. They hope to gain the requisite approvals in the coming year.

Mounjaro has already received Fast Track Designation from the Food and Drug Administration (FDA). The drug pulled in revenues of $97.3 million during the last quarter. Further approvals will significantly boost the share price of Eli Lilly.

Before the end of 2023, the pharma company is expected to launch four more products, including a drug to treat early-stage Alzheimer’s.

“Several of our late-stage medicines for serious diseases were submitted for approval this year, and will hopefully launch in 2023,” Lilly CEO David A Ricks said in a statement, mid-December.

In 2023, Eli Lilly is banking on the potential launches to assist its next growth wave. Despite dialing back its expectations for 2023, most analysts feel that Eli Lilly stock will stay in the green next year.

Having Eli Lilly stock also means getting dividend pay, which has been increased gradually over the last eight years.

The share price for Eli Lilly stood at $364.88 at the close of December 27, and is expected to acheive a median target of $400 in the coming year.

Financial planning isn’t just about investing; it’s about what money can do for your confidence, security, and quality of life. Even if you have all the best stocks to buy in 2023 in your portfolio, it is necessary to be aware of additional fees and investment costs.

Your financial plans must also be tailored to suit your individual needs and help you achieve your goals. Even though different experts suggest a variety of stocks 2023 to stock up on, it is up to each investor to do their due diligence.

Having a written financial plan is also key to a sense of security while leaving room for improvement. It also shows you your goals and progress at a glance. 

HOW TO CREATE A FINANCIAL PLAN?

High income does not necessarily mean bigger savings. Don’t believe us? You might want to watch Netflix’s new documentary Get Smart With Money. 

The documentary points out that your circumstances can change anytime. Whether it is to secure your business’ financial future or individual needs, a well-thought plan will help you overcome the curveballs of life. 

Before creating a financial plan, you must calculate your net worth. Net worth is calculated by subtracting liabilities from assets. 

The next step is to analyze your expenses, followed by preparing SMART goals. The 50/30/20 rule is a time-tested way to achieve your financial goals. 

You spend 50% on essentials, 30% on wants, and set aside 20% for the future. Savings also include preparing a retirement fund, planning for emergencies, and organizing your investments. 

In case you have debt, you must make provisions to pay it off quickly. Some financial experts recommend splitting paychecks into five categories – bills (also includes debt), spending account, personal wants, emergency savings, and dream savings (investment). 

The stock market, although predictable in its unpredictability, can be thwarted by studying past performances, growth forecasts, and planned changes.

If you feel unequipped to navigate the intricacies of the stock market, it is best to team up with a financial planner who can guide you.

The post Expert Predictions: The Best Stocks For 2023 appeared first on Industry Leaders Magazine.

Jeff Bezos is an example of a powerful business leader who does not take anything for granted and does everything with caution and dedication. 

That is why he is the world’s richest man. 

As of November 2021, Amazon CEO Jeff Bezos owns over $200 billion. This sum is gained thanks to the different ventures and businesses that exceed the limits and change our reality in many different ways. 

Let’s see what makes him rich and how he gained the money that is hard to believe.

Bezos’ early career

Long before Amazon, Jeff Bezos worked for different companies that were the starting point of his career. After graduating from Princeton University in 1986, Bezos worked at Fitel, which was a start-up related to international trade. 

Later on, he moved to the banking industry and was a product manager at Bankers Trust. In the following years, he worked for a hedge fund and at the age of 30, he became D. E. Shaw’s fourth senior vice-president.

In 1993, Bezos wanted to build an online bookstore. That is why he founded Amazon in 1994. He saw big potential in this industry and he already had a vision of Amazon becoming the first online store that offers some great amenities.

Bezos invested the major part of his parents’ savings and he also gathered $1 million in seed funding. This was the initial investment in the company that would later become the number one e-commerce company in the world.

The Rise of Amazon & the World’s Richest Man

In May 1997, Amazon went public and solidified itself as a market leader. It had product offerings that could not be found anywhere else, which is why annual sales reached over $3 billion in 2001. 

In 2013, Jeff Bezos revealed the improved Amazon web services in the form of Amazon Prime subscription businesses. There was also Amazon Prime Air, the service that would use drones for delivering the items to the customers. 

In 2016, Bezos sold more than one million shares for over $600 million, which was the largest sum he had raised from selling any Amazon stock by that time. One year later, he employed more than 130,000 new employees for the new distribution centers. 

With the progress of Alibaba in China, Bezos was looking for ways to reach the market in India. He dispatched the vice president to India to localize operations and improve the supply chains. It happened in March 2018.

In the same month, U.S. President Donald Trump accused Bezos of misusing postal routes and avoiding sales taxes. These accusations initiated the fall of Amazon’s share price by 9%. This also left a bad media reputation for Bezos.

However, he rebuilt his reputation in the recent year and continued to lead Amazon through the daily challenges.

Other ventures 

Bezos has always shared his visions about space flights and space colonization. He founded the Blue Origin company in September 2000, and he wanted to establish the company as the leading spaceflight company on the market. 

Jeff Bezos’ Blue Origin is funded by different sources, but some of the most significant sources of income come from selling Amazon stocks. Bezos invests more than $1 billion of Amazon stocks each year to fund the projects of Blue Origin. 

Jeff Bezos continues to be a role model for many business persons and his investments are precisely selected to bring larger incomes. That is why he is the world’s richest man with the potential to enlarge his fortune in the following years. 

The post How Jeff Bezos Became the Richest Man on Earth appeared first on Industry Leaders Magazine.

Jeff Bezos sold more than $3 billion worth of Amazon shares, according to media reports citing Securities and Exchange Commission filings. According to the report, the transactions were made on November 2 and 3. The buyers of the shares were not revealed. Bezos will receive $2.3 billion after taxes for selling 1.8 per cent stake (or 1 million shares) of his company.

This is the third time this year that Bezos has sold stocks from his company. The total cash out tallies up to nearly $10.2 billion.

In August, Jeff Bezos offloaded around $3.1 billion shares. Before that, in February, he sold nearly $4 billion shares of his company. In 2019, Bezos sold $2.8 billion worth of shares of Amazon. The transaction was part of a pre-arranged plan to sell Amazon shares in accordance with insider trading laws. Amazon declined to comment on the latest sale.

Even with the latest stock sale, Bezos remains the richest person in the world, with more than 53 million shares worth nearly $170 billion.

Bezos revealed in an earlier interview that he sells about $1 billion of Amazon stock each year to fund his rocket start-up, Blue Origin.

Another venture that Bezos has started is a $10 billion Earth Fund to back research to combat climate changes. “Climate change is the biggest threat to our planet,” the Amazon chief executive said in February. He committed the aforementioned money to the effort and said he would begin issuing grants in the summer. This, in effect, means he pledged more than 7% of his then wealth to the effort.

But the pandemic derailed the plans of launching the project in the summer.

Grants will be given to scientists and activist organizations to research into processes and projects to prevent further devastation of our planet.

According to a report in The Atlantic, $100 million each will be given to the Nature Conservancy, the Environmental Defense Fund, the Natural Resources Defense Council and the World Wildlife Fund.

Bezos has also committed $100 million to the World Resources Institute, a sustainability-research organization, according to the report. He has also promised $10 million to $50 million to smaller non-profits working in the field of energy and sustainability. They are: Energy Foundation, the Union of Concerned Scientists, the ClimateWorks Foundation, and the Rocky Mountain Institute.

A spokesperson for the Earth Fund told the Atlantic reporter, “This list does not reflect the complete range of organizations that the Earth Fund has been speaking with and that will be receiving grants from the fund in this initial round—stay tuned.”

The funding list has raised some eyebrows, as this represents a very conservative and traditional list. The big receivers all are already well funded, with big budgets running into millions. Also, their approach to climate change is deemed to be old fashioned and not very evolved. The Environmental Defense Fund and the Natural Resources Defense Council are supposed to be too corporate-friendly to do any overreaching benefit to the cause.

Their approach is centered around pollution control and restricting emissions, whereas the problem is now more embedded and far-reaching than some technocratic solution. A whole economic outlook and social shift is needed to bring drastic and immediate changes to the problem, which has already reached its tipping point.

Also, the World Wildlife Fund and Nature Conservancy both have been involved in some dubious dealings recently.

All of the recipient groups are 501(c) 3 nonprofits, which means they are legally prohibited from intervening in political campaigns, or even appearing partisan.

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The transaction occurred days after Amazon blew away Wall Street’s expectations with its latest earnings report. The e-tailer giant reported second-quarter revenue of $89 billion as consumers flock to online shopping during the pandemic. Its $5.24 billion in net income in Q2 2020 was double that of the same quarter in 2019.

Bezos still owns nearly 55 million shares worth about $175 billion at today’s closing price. Amazon stock has been trending since mid-March as more people turn towards online shopping in the post-pandemic world.

Still richer than ever!

The latest sell-off comes less than a week after Jeff Bezos appeared on the hot seat before Congress, via Zoom, as part of an antitrust investigation. For more than six hours, members of the House Antitrust Subcommittee grilled industry leaders such as Mark Zuckerberg, Tim Cook, and Sundar Pichai – CEOs of America’s most valuable companies, with only Satya Nadella missing – on matters ranging from anti-conservative bias to online censorship.

The spectacular gains of Bezos took a beating when his split to Mackenzie Scott cost him $38 billion in the divorce settlement. However, Bezos’ fortune soared between mid-March and mid-May as the coronavirus pandemic rewarded the most tech-focused companies. His wealth increased by 46% during the period to $80 billion; meanwhile, his ex-wife who received Amazon shares in their divorce, also saw her wealth soar by a third to $48 billion.

Bezos has a pattern of selling Amazon stock in millions. He made similarly massive sales of Amazon shares earlier this year in February, in 2019 and 2017. Bezos plans to liquidate at least $1 billion of Amazon stock a year to fund his space-exploration company, Blue Origin.

Jeff Bezos remains the world’s richest man alive, with an 11% Amazon stake worth $175 billion, according to the Bloomberg Billionaires Index. He owns several other assets, including the Washington Post and Blue Origin.

The world’s richest man is now on the cusp of another record: a fortune of more than $200 billion.

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