Page 1,187«..1020..1,1861,1871,1881,189..1,2001,210..»

Ethereum Layer 2 Optimism beats MATIC to the curb, sees massive spike in active addresses – FXStreet

The competition among Ethereum Layer 2 scaling solutions has intensified after the US Securities and Exchange Commissions (SEC) crackdown. Polygon networks MATIC was the largest Layer 2 scaling solution before the SEC labeled the token as a security.

Crypto intelligence trackers have recorded a decline in daily user activity on the MATIC network, while Optimism (OP) observed a significant increase. This signals OP is likely dethroning MATIC in terms of daily activity and user adoption.

Also read: Cardano, MATIC and Solana attempt to recover amidst exchange delisting and SEC crackdown

Based on data from Polkadot Insider, a tracker for crypto activity of several projects, Optimism added 77.1% new daily active users over the past month. In the same timeframe, MATIC suffered a loss of 23.4% daily active users.

Growth in daily active addresses across several blockchains

The declining activity on the MATIC network can be attributed to the Securities and Exchange Commissions labeling the asset as a security. Since MATIC was tagged as a security, the token suffered delisting from social trading platforms like eToro and exchanges like Robinhood.

During the same time, Optimism released a key technical development, the Bedrock update. The Bedrock upgrade cut deposit confirmation times by 90%, fueling a bullish sentiment among OP users and driving the tokens adoption.

Over the past 30 days, MATIC and OP prices declined nearly 30%. However, Optimism beats MATIC in user activity, signaling a faster recovery in the Layer 2 token rather than Polygon.

Since Monday, OP price has rallied over 6% while MATIC has failed to score gains in the same timeframe.

Read more here:

Ethereum Layer 2 Optimism beats MATIC to the curb, sees massive spike in active addresses - FXStreet

Read More..

Chainlink & Ethereum: Powering DeFi’s Future With Caged Beasts – Blockchain Reporter

Welcome to a world where traditional finance collides with the transformative power of blockchain technology. In this article, we will dive into the exciting domain of decentralized finance (DeFi) and explore the prospects of three key players: Chainlink (LINK), Ethereum (ETH), and the intriguing Caged Beasts (BEASTS).

Discover how Chainlinks partnership with SWIFT is pushing the boundaries of blockchain interoperability, why Ethereum is revolutionizing DeFi, and the narrative behind Caged Beasts. Join us on this journey as we unravel the potential of DeFi and its impact on the financial industry.

Chainlink (LINK), a leading web3 infrastructure provider, has entered into a groundbreaking partnership with SWIFT, the global financial messaging service. This collaboration aims to link private and public blockchains, creating better blockchain interoperability in the banking sector.

By leveraging Chainlinks Cross-Chain Interoperability Protocol (CCIP), SWIFT and an association of banks are exploring the seamless integration of tokenized assets with blockchain technology. This institutional interest in accommodating customer needs through authorized and public blockchain networks reflects the growing significance of Chainlink in the world of finance.

Ethereum (ETH), the trailblazer of smart contract platforms, has set the foundations for the world of decentralized finance (DeFi). With its rock-solid infrastructure, Ethereum empowers developers to unleash their creativity and build decentralized applications (dApps) that use smart contracts.

Ethereums native cryptocurrency, Ether (ETH), serves as the fuel propelling these dApps, enabling users to dive into a sea of financial opportunities within the Ethereum ecosystem. Its adaptability and scalability have positioned Ethereum as a leading player in the DeFi arena, paving the way for decentralized exchanges, lending protocols, and the explosive universe of non-fungible tokens (NFTs).

Ethereums significance in the future of DeFi cannot be overstated. As DeFi continues to develop, Ethereums ability to support complex smart contracts and its strong network effect will play a crucial role in the ecosystems growth. Its programmability allows for the creation of innovative financial instruments and decentralized applications, fostering a vibrant and dynamic DeFi landscape.

Caged Beasts (BEASTS) is one of the most promising presale community tokens in DeFi right now. Caged Beasts introduces a world-building concept that merges a captivating narrative with the potential for financial growth. Symbolizing caged liquidity, the project tells the story of Rabbit 4001, a tortured creature driven by vengeance to become a mad scientist. Injecting caged animals with mutagens, Rabbit 4001 transforms them into powerful, cybernetic beasts on the brink of breaking free. This imaginative world captures its community, sparking engagement and excitement.

With 75% of funds locked until the release date, Caged Beasts introduces a unique mechanism that aligns the growth of locked funds with the gradual evolution of caged animals. When these funds are released, investors will see first-hand a realization of the metaphorical growth of these caged animals.

Additionally, Caged Beasts commitment to marketing and community development is evident through the allocation of 25% of funds to a dedicated marketing wallet, ensuring the projects visibility and fostering growth.

The future of decentralized finance is unfolding before our eyes. With Chainlinks partnership with SWIFT, the dominance of Ethereum in DeFi, and the captivating allure of Caged Beasts, we are witnessing the transformative power of blockchain technology in the financial industry.

As DeFi continues to evolve and disrupt traditional finance, these entities are poised to play significant roles in shaping the landscape of decentralized finance. Embrace the possibilities, explore the potential, and prepare for a future where financial freedom is within reach.

Ready to embark on this thrilling journey with Caged Beasts? Register your email on their website, https://cagedbeasts.com/, and be part of a narrative that intertwines imagination with the potential for financial success.

For more information on Caged Beasts (BEASTS):

Website: https://cagedbeasts.com

Telegram: https://t.me/CAGEDBEASTS

Twitter: https://twitter.com/CAGED_BEASTS

Originally posted here:

Chainlink & Ethereum: Powering DeFi's Future With Caged Beasts - Blockchain Reporter

Read More..

Ethereum Blockchain Explorer Etherscan Unveils ChatGPT … – Cryptonews

Source: Pixabay

Artificial intelligence continues to demonstrate its value within the blockchain ecosystem. Etherscan, a prominent Ethereum blockchain explorer, has introduced AI integration in its recently launched Code Reader beta version.

In a statement on June 19, Etherscan announced that the Code Reader would utilize the OpenAI API to fetch and interpret source codes of smart contracts.

The beta version of the code reader harnesses the power of AI to effortlessly understand and analyze various smart contract source codes, offering users a comprehensive learning experience.

Blockchain explorers are online search engines that enable users to view transactions and other information on blockchain networks.

Some well-known blockchain explorers include SolScan for the Solana blockchain, Etherscan for Ethereum, Blockchain.com for Bitcoin, and BlockScout for EVM-based blockchains.

In its announcement, Etherscan noted that its newly unveiled Code Reader could accelerate Smart contract research and development.

It gives users a comprehensive understanding of how to integrate selected smart contracts with decentralized applications (dApps)

Besides the advantages of this new integration, Etherscan also highlighted its limitations.

According to the blockchain explorer, the code reader only accepts OpenAI API Keys with sufficient usage limits. It warned that the answers may not be precisely accurate since they are AI-generated.

The blockchain explorer added a disclaimer, warning users to fact-check and verify the AI-generated responses and not to rely on them for evidence or bug bounties.

This aligns with the issues associated with AI chatbot hallucinations.

Hallucination relates to AI chatbots' tendency to generate false information not backed by real-world data when responding to prompts.

Etherscan called for suggestions from users on possible adjustments or improvements.

This is very much a Beta releaseplease let us know what youd like us to add or improve, Etherscan added.

Etherscan isnt the first blockchain-based platform to integrate AI tools.

On June 14, Alchemy, a leading blockchain developer, launched a ChatGPT-based tool dubbed AlchemyAI. AlchemyAI comprises a GPT-4 plugin for blockchain exploration.

Alchemys product manager, Elan Halpern, said in an interview that the firm's objective in launching the plugin is to cater to and train a model using a web3 development-specific ChatGPT.

Also, on April 25, Solana Labs announced the launch of an open-source ChatGPT plugin. Solana Labs said the plugin would allow users to perform various tasks via the ChatGPT user interface.

The ChatGPT plugin offers users the convenience of checking wallet balances, transferring tokens, and purchasing NFTs on the Solana blockchain.

The introduction of this tool by Etherscan aims to streamline user navigation within the ecosystem. It is important to note that Etherscan's AI-powered Code Reader operates in a distinct manner compared to ChatGPT plugins.

While ChatGPT plugins are integrated on the chatbot's website, the Code Reader operates directly on the Etherscan platform using an OpenAI API Key.

It is worth mentioning that utilizing the Code Reader incurs an additional cost separate from a ChatGPT Plus subscription.

Other GPT-4 plugins utilized for blockchain analysis include Sic, DefiLlama, and CheckTheChain.

Continued here:

Ethereum Blockchain Explorer Etherscan Unveils ChatGPT ... - Cryptonews

Read More..

Litecoin adoption outdoes Ethereum; LTC reacts by – AMBCrypto News

Litecoin [LTC] has outperformed Ethereum [ETH] in a key metric, as per Glassnode. Notably, LTCs total addresses reached 200.7 million at press time,while ETHs figure stood at 181 million, which gave the former a lead of over 20 million addresses.

Realistic or not, heres LTCs market cap in BTCs terms

Other metrics also revealed that the blockchains performance was something to rejoice over. For instance, daily active addresses also spiked, reflecting increased usage. Besides that, LTCs velocity was up.

An increase in the metric meant that LTC was used in transactions more often within a set time frame. Moreover, daily on-chain transaction volume in profit also increased last week.

Though the blockchains network activity was on the rise, its price action did not follow the same trend, as it increased marginally last week. According to CoinMarketCap, LTCs price has risen by over 1% in the last seven days.

At press time, it was trading at $77.43, with a market capitalization of over $5.6 billion.

However, LTCs whale activity remained high, as per Santiments chart. Sentiment around LTC also improved last week, as evident from its weighted sentiment and social volume.

Interestingly, Coinglass data revealed that LTCs sideways trajectory might soon change. Litecoins Open Interest has registered a decline since the beginning of June.

A decline in that metric usually means that the ongoing price trend may end soon. Therefore, the possibility of LTC registering gains seemed likely.

How much are 1,10,100 LTCs worth today?

LTCs daily chart pointed out quite a few bullish market indicators, suggesting a price hike in the coming days. For instance, LTCs MACD displayed the possibility of a bullish crossover. Litecoins Relative Strength Index (RSI) also registered an uptick.

Its Money Flow Index (MFI) also followed the same trend, increasing the chances of a northbound price movement in the coming days.

Read the original here:

Litecoin adoption outdoes Ethereum; LTC reacts by - AMBCrypto News

Read More..

Why Ethereums price rise is not cause for celebration yet – AMBCrypto News

The Binance and Coinbase episode with the US Securities Exchange Commission caused havoc in the crypto industry. It caused a decline in the supply of Bitcoin [BTC] and Ethereum [ETH] on Binance, suggesting that investors were losing confidence in CEXes.

Read Ethereums [ETH] Price Prediction 2023-24

Glassnodes latest tweet revealed that after the SEC incident, investors actively withdrew their ETH and BTC from Binance. As per the tweet, Ethereums balance on Binance was around 4.56 million to 4.2 million.

This indicated that they were losing faith in the CEX. In order to keep their holdings safe, investors were moving their assets to self-custody, or DEXes. This was evident from Dunes data.

After a decline, ETHs volume on DEXes registered an uptick, as per the chart ETHs DEX volume has increased on multiple projects such as Curve [CRV], Uniswap [UNI], and more since 11 June.

It was interesting to see that ETH generated the highest revenue in Q1, driven by its high usage and gas fees. According to Messaris recent tweet, Ethereums revenue was $457 million, almost 2.8 times the combined revenue of all other featured L1s.

However, things changed in the second quarter of this year. Token Terminals data revealed that ETHs revenue had declined. After spiking on 5 May 2023, Ethereums revenue plummeted sharply, which was not good for the blockchain.

Though ETHs revenue declined, the tokens price moved the other way. According to CoinMarketCap, ETHs price has increased by nearly 2% in the last 24 hours. At the time of writing, it was trading at $1,665.31, with a market capitalization of over $200 billion.

As per CryptoQuant, Ethereums Relative Strength Index (RSI) was in an oversold position. This might have increased buying pressure and pushed up the tokens price. Ethereums exchange reserve was also green, suggesting that the token was not under selling pressure.

Is your portfolio green? Check the Ethereum Profit Calculator

A look at ETHs daily chart suggested that the uptrend might continue as the market indicators looked bearish. The MACD displayed a bullish upperhand in the market.

Ethereums Chaikin Money Flow (CMF) also registered a downtick. Additionally, its Exponential Moving Average (EMA) Ribbon also pointed out that the bears were leading the market, as the 20-day EMA was below the 55-day EMA.

Follow this link:

Why Ethereums price rise is not cause for celebration yet - AMBCrypto News

Read More..

Bitcoin and Ethereum Dominance Surge as Altcoin Struggle: Crypto Market Analysis – Coinpedia Fintech News

The global cryptocurrency market has seen remarkable shift in recent times as Bitcoin (BTC) and Ethereum (ETH) dominance surges, leaving many Altcoins struggling to maintain their value.

As BTC and ETH strengthen their market position, Altcoins face a challenging environment, with Stablecoins benefiting from the ongoing trend.

This analysis examines the current crypto market landscape, highlighting the dominance of BTC and ETH and the struggles faced by Altcoins.

Read on for more exciting details!

Bitcoin, the leading cryptocurrency, has seen a surge in dominance, capturing 46.81% of the total crypto market capitalization, equivalent to $523 billion. This substantial market share demonstrates BTCs resilience and continued appeal to investors.

Ethereum, the second largest cryptocurrency, has also experienced a significant boost, with a market cap of $208.14 billion, solidifying its position as a dominant force in the market.

These developments indicate the continued trust and confidence in both BTC and ETH, driving their upward trajectory.

Also Read: BTC Price: Arthur Hayes Reveals Timeline for Bitcoins Next Rally

While BTC and ETH soar, Altcoins face substantial losses, struggling to maintain their value and market capitalization.

Cardano (ADA) and Chainlink (LINK) are among the altcoins that have witnessed negative price movements. ADA currently holds a market cap of $9.12 billion, while LINKs market cap stands at $2.64 billion. These figures reflect the challenges faced by many Altcoins in the current market climate, with investors flocking towards BTC and ETH as more secure investment options.

Stablecoins, designed to maintain a stable value often pegged to fiat currencies, have seen increased market share lately. Collectively, stablecoins hold a market cap of $130 billion, representing an 11.6% share of the total cryptocurrency market cap. Notable stablecoins such as Tether (USDT), USD Coin (USDC), and others have gained traction as investors seek a more reliable store of value amidst market volatility.

Notably, a popular tweet posted by DonAlt backs the aforesaid observation, with the assistance of data and analysis, about the growing influence of Stablecoins.

Bitcoin, with a current price of $26,594.42 per BTC, has experienced a slight decline of -0.19% in the last 24 hours. Ethereum, on the other hand, displays a positive trend, with a 24-hour increase of +0.48% and a price of $1,734.57 per ETH. Stablecoins like Tether and USD Coin maintain stability, with Tether exhibiting no change and USD Coin showing a slight increase of +0.03% in the past 24 hours. Meanwhile, Altcoins, Cardano, and Chainlink, face challenges, with ADA showing a -2.84% price decrease and Link experiencing a -1.46% decline.

In short, while BTC and ETH continue to solidify their position, Altcoins struggle to keep up, facing significant losses. Stablecoins, on the other hand, have gained market share, presenting an alternative for investors seeking stability.

For more such interesting crypto news articles, staytuned to Coinpedia!

Read the original post:

Bitcoin and Ethereum Dominance Surge as Altcoin Struggle: Crypto Market Analysis - Coinpedia Fintech News

Read More..

If You Bought Your Dad $100 In Bitcoin, Dogecoin And Ethereum Last Father’s Day, Here’s How Much He’d Hav – Benzinga

June 18, 2023 8:51 AM | 1 min read

If youre struggling with what to get your dad for Fathers Day, a gift of cryptocurrency is an option. Heres a look at whether a gift of crypto on Fathers Day last year would have been a good investment.

What Happened: Fathers Day is celebrated on the third Sunday in June. The holiday was inspired by Mothers Day, which got its start years earlier.

Fathers Day was first celebrated in 1910but didnt become an official holiday until 1966. The holiday was recognized by President Woodrow Wilson in 1916. President Calvin Coolidge also encouraged states to observe the holiday in 1924.

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

In 1966, President Lyndon B. Johnson made Fathers Day an official holiday.

Last year, Fathers Day was celebrated on June 19, 2022. Heres a look at how a $100investment in each of thethree leading cryptocurrencies at that time would be worth now.

Massive returns are possible within this market! For a limited time, get access to the Benzinga Insider Report, usually $47/month, for just $0.99! Discover extremely undervalued stock picks before they skyrocket! Time is running out! Act fast and secure your future wealth at this unbelievable discount! Claim Your $0.99 Offer NOW!

Advertorial

Related Link: How To Buy Cryptocurrencies

Investing $100 Each IntoBitcoin, Dogecoin, Ethereum: Heres how much Bitcoin (CRYPTO: BTC), Dogecoin (CRYPTO: DOGE) and Ethereum (CRYPTO: ETH)could have been bought at theirhighs on June 19, 2022.

Bitcoin: 0.0048

Dogecoin: 1,600.72

Ethereum: 0.0875

Investing $100 in each cryptocurrency last Fathers Day would be worth the following based on prices at the time of writing:

Bitcoin: $127.21, +27.2%

Dogecoin: $99.56, Flat

Ethereum: $151.21, +51.2%

A $300 gift consisting of the top three cryptocurrencies would be worth $377.98 today, an increase of 26.0%.

While the cryptocurrency market has been extremely volatile in recent years, investments in three of the most well-known cryptocurrencies would have generated a positive return sincelast Fathers Day.

Read Next: Celebrate Father's Day With The Latest Cannabis Products, Extracts, Vapes, Beverages & More

Photo: Shutterstock

2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Go here to see the original:

If You Bought Your Dad $100 In Bitcoin, Dogecoin And Ethereum Last Father's Day, Here's How Much He'd Hav - Benzinga

Read More..

Johannesburg Stock Exchange expands cloud-based colocation … – Finextra

Through a new, international tech collaboration, the Johannesburg Stock Exchange (JSE) will soon launch Colo 2.0 an advanced managed infrastructure as a service (IaaS) solution that will provide JSE clients with cloud-based colocation services.

The launch of Colo 2.0 will further entrench our position as a centre of innovation for financial markets on the African continent. We will provide our clients with leading edge innovative hosting and connectivity solutions for their colocation needs. This collaboration with two global market leaders is paramount to fostering innovation at the JSE, says Langa Manqele, Head of Equities and Equity Derivatives at JSE.

Clients will gain the ability to access on-demand private cloud computing and low-latency analytics packaged within Colo 2.0; utilising the industry-leading private portal to self-manage and configure infrastructure.

This new solution is a significant aspect of the JSEs strategy to advance its growth across services, to build the JSEs already impressive suite of services as the largest stock exchange in Africa. In 2014, the bourse launched its colocation centre, which has allowed clients to place their trading equipment in the JSEs data centre to enable faster access to all its markets.

As our business evolves in line with the needs of our clients, we continue to work even more tirelessly to partner to bring them enhanced and speedier services that can enhance and add value to their businesses, says Manqele.

Colo 2.0 is an international collaboration with Beeks Group, a leading managed cloud computing and analytics provider for global financial markets, and IPC Systems, a leading provider of electronic trading solutions.

Colo 2.0 provides on-demand computing and analytics capabilities, allowing the JSE to provide clients with a cutting-edge IaaS solution with a fully configured, pre-installed environment. The multi-tenant solution reduces Time to Market and Total Cost of Ownership, while offering PTP (precision time protocol) time stamping, improved flexibility and scalability, a built-in analytics server, and a single point of contact for support and invoicing.

Africa is fast emerging as an influential global player and this is a huge opportunity for Beeks, IPC and the JSE to help drive capital markets innovation and development in Africa. By reducing CapEx spend and operational barriers to entry, our flexible solution allows the JSE to offer a branded cloud service in their own facility, and control that infrastructure easily at scale, turning a cost center into a profit center. Beeks Colo 2.0 derived from an identified demand from global exchanges for a secure muti-client private cloud environment and we are delighted to share that vision with the JSE and look forward to establishing a long-term and successful relationship, says Gordon McArthur, CEO at Beeks Group.

This is a major development for IPC and the South African marketplace. The customer reception so far has been tremendous. By leveraging our solution, JSEs clients can reduce time to market, decrease capital expenditure and ease their dependency on working with multiple vendors. As a continent experiencing rapid transformation and one of the fastest expanding economic regions globally, the role of Africas capital markets for economic development has never been more critical. IPC is excited to facilitate that potential with JSE and we look forward to sharing our expertise within the 40+ economies of the region, says Matt Pilkington, Business Development Manager at IPC Systems.

See the original post:
Johannesburg Stock Exchange expands cloud-based colocation ... - Finextra

Read More..

Elon Musk’s Twitter is refusing to pay for Google Cloud: what could … – Startup Daily

Amid an ongoing cost-cutting effort, Twitter has now refused to pay the bills to renew its multi-year contract with Google Cloud, Platformer has reported.

Weve all heard of the cloud but what does it have to do with Twitter? And more to the point, what will the consequences be for Twitter users if Google Cloud pulls the plug on the platform?

To put it simply, the cloud is an assembly of computing resources that are remotely accessible over the internet. These resources are leased out to internet-connected organisations so they dont have to buy and maintain their own.

In Twitters case, these resources include storage space for very large quantities of data, as well as a suite of programs that perform various operations on these data, as agreed upon in the contract. All of this takes place across a global network of physical servers.

Cloud computing is a convenient and cost-effective business model, which has gained much favour from enterprises large and small.

Currently, a handful of players dominate this market. In the lead is Amazon Web Services (AWS) which holds about 32% of the market. Amazon became the first cloud provider in 2006 and has since established a comfortable lead over its rivals, Microsoft Azure (23%) and Google Cloud (10%).

Reliability and scalability are perhaps the most important requirements a company will have of its cloud service provider. And when it comes to reliability, redundancy is key.

Redundancy means that if one data centre goes down, there are multiple others with duplicate data that can seamlessly step into service. And if the quantity of user data is high in one particular data centre, the extra load can be farmed out to another. In this way, peak traffic periods can be managed without loss of performance.

It seems Twitter is at loggerheads with its cloud provider, Google Cloud. The company is reportedly disputing its Google Cloud bill as it seeks to renegotiate its contract with Google.

The issue appears to be rooted in a disagreement over service quality and performance. Twitter doesnt think its getting value for money, and is withholding the latest payment in its US$1 billion contract with Google Cloud.

Under the contract, Google Cloud hosts many of Twitters trust and safety services. If the disagreement isnt resolved by the end of the month, and if Twitter severs ties with Google Cloud, this could seriously threaten its ability to fight spam, remove child sexual abuse material and generally protect accounts.

Google also currently allows Twitter users to sign up with their Google account. And Twitter profiles are highly ranked in Google searches, by virtue of Twitters close ties with Google. This favoured status could be in jeopardy if the two companies cant come to terms.

Apart from Google Cloud, Twitter also has a multi-year cloud computing contract with AWS to offer a host of functions. According to reports, it has also withheld payments from Amazon in the past and owed some US$70 million in bills as of March. Amazon responded by threatening to withhold payments for advertising it runs on the platform.

The dispute can perhaps be understood as yet another attempt by Twitter to radically reduce operating costs. Its a a trend that began late last year when Elon Musk acquired the company for US$44 billion.

Musk, who just appointed former NBC Universal advertising executive Linda Yaccarino as Twitter CEO, has implemented a suite of cost-cutting measures since the takeover among these, the firing of more than half of the companys 7,500 employees.

Looking at the big picture, we see Musk in the throes of trying to make Twitter a leaner, more efficient business.

At stake in this dispute are services that help keep Twitter free of malicious, dangerous and offensive content. Twitters battle against this content, as well as against spam and bots, has been ongoing. While its difficult to predict the outcome of the dispute with Google, its likely Twitter will take whatever course of action helps the company save money.

That could mean moving those services to a different provider, or retaining Google Clouds services but on more favourable terms. Another possibility (although less likely) is for Twitter to migrate those particular services in-house where it will have more control. But this would also require spending and human resources to manage the data.

In a worst-case scenario, Twitter may collapse or destabilise if certain elements within it go offline. Aside from Twitter trolls, this outcome would be in nobodys best interest. So its more likely Twitter and Google Cloud will find a mutually agreeable way forward.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Read more from the original source:
Elon Musk's Twitter is refusing to pay for Google Cloud: what could ... - Startup Daily

Read More..

A Bull Market Is Coming: 1 Unstoppable Growth Stock to Buy and Hold – The Motley Fool

The stock market continues to perform well this year despite fears of a coming recession. While this could be the early innings of a new bull market, especially following last year's downturn, nobody can tell for sure. However, a sustained bull run will come eventually. That is one thing we can bet the farm on. And there are plenty of quality stocks to consider buying before that happens. One that looks particularly attractive is Amazon (AMZN -1.27%). Let's consider why the tech juggernaut remains such an excellent option for investors.

Amazon faced a barrage of headwinds last year, culminating in the first annual net loss it's had since 2014. Consumer activity declined, leading to lower sales for its e-commerce business than it would have typically generated. Businesses strapped for capital reduced investment in cloud computing, and expenses and costs, partly related to inflation, were up.

That's a bad combination for any company. But Amazon is turning over a new leaf this year. It has gone through several cost-cutting initiatives, including layoffs, to decrease costs. In the first quarter, the company's revenue increased by 9% year over year to $127.4 billion. Amazon's net loss of $3.8 billion in Q1 2022 swung to a net income of $3.2 billion this time around.

Things should continue to improve for Amazon, which is why its shares are up by 50% already this year. But the company's long-term prospects are even more appealing.

Amazon's biggest strength isn't its leadership in several fast-growing industries ripe for growth, its size, or the amount of cash it generates. Of course, all those things are important, but they are all the result of something more fundamental. Amazon has created a culture that enables it to identify exciting growth opportunities and expertly pounce on them.

That's what it did with e-commerce in its early days and with cloud computing. Now, Amazon is seeking to do the same with the newest technological revolution: artificial intelligence (AI). The company recently announced Amazon Bedrock through its cloud service, Amazon Web Services (AWS). Bedrock will give developers the tools to build generative AI models, applications that take in a set of queries and generate text, images, videos, etc. ChatGPT is an example.

To help speed up the development of new generative AI applications, Amazon will provide foundation models, the backbones behind applications like ChatGPT. foundation models are trained to identify patterns on large datasets (pictures, text, etc.) and fine-tuned to perform various tasks. Building foundation models are expensive and time-consuming.

Developers will be able to save time and money in developing generative AI applications thanks to Bedrock. AI is, of course, on the rise. While estimates vary, they all promise an exciting future for the industry. Grand View Research predicts that the generative AI market will reach $109.7 billion by 2030, clocking in at an impressive compound annual growth rate of 35.6% through then.

Amazon could be a winner here. We can also expect the company to continue making headway elsewhere, from its attempt to make waves in healthcare to its dominance in e-commerce and the broader cloud computing industry, both of which are still growing rapidly.That's not to mention Amazon's presence in music and video streaming.

Further, Amazon's competitive advantage from multiple sources will help it stay ahead of its peers. The company benefits from a powerful brand name, one of the most valuable in the world.Its e-commerce platform is a prime example of the flywheel effect, where its value increases with usage (more merchants attract more customers and vice-versa).

AWS also benefits from high switching costs. Amazon should succeed in delivering plenty more years of market-beating performance, given all that it has going for it.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

Here is the original post:
A Bull Market Is Coming: 1 Unstoppable Growth Stock to Buy and Hold - The Motley Fool

Read More..