February 12, 2025

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in 2022 Nasdaq Composite The index fell 33% as macroeconomic headwinds curbed consumer discretionary spending and businesses cut their budgets. Countless companies across various industries reported declines throughout the year.

However, 2023 has seen a resurgence of bullishness among investors. Market is in recovery mode, companies are benefiting from low inflation and improvement in market conditions. The Nasdaq Composite is up nearly 30% since January 1, and some analysts are declaring the start of a new bull market.

As a result, now is an excellent time to invest in the companies most likely to benefit from improving conditions. Here are two ultra-growth stocks that are leading the market recovery.

1. Amazon

Amazon (AMZN 0.08%) suffered heavy losses last year as its e-commerce segments reported a sharp decline in profits. However, the company has a massive upside potential for 2023. Its stock is up 58% year-to-date due to its steadily improving earnings and growing venture into artificial intelligence (AI).

In the second quarter, Amazon reported operating income of more than $3 billion in its North America segment, which posted a loss of $627 million in the year-ago period. The stock jumped on the correction as Wall Street celebrated the retail giant’s return to form.

The quarter also saw revenue for the company’s cloud platform, Amazon Web Services (AWS), rise 12% year-over-year. The industry has grown in recent years as more companies move their businesses online, with Amazon benefiting from its leading market share in the cloud infrastructure sector. AWS has experienced slow growth amid macroeconomic challenges. However, its expansion into AI, its dominance in the cloud market and lack of inflation could make it Amazon’s most attractive business over the long term.

Amazon’s strong position in multiple markets gives shareholders the opportunity to profit from the growth of multiple industries. With the share price still down 29% from July 2021 highs, Amazon is an attractive buy as it looks to lead a market recovery.

2. Apple

Apple (AAPL 0.85%) had a relatively easier time last year than Amazon. Although its stock declined 27% for the whole of 2022, the result was enough to outperform the Nasdaq Composite. The tech giant’s premium-priced products and fast-growing services business made its stock a haven for investors seeking respite from bad market conditions.

Cuts in consumer spending on technology have given Apple momentum in 2023; It reported decline in sales across several product segments in its fiscal third quarter ended July 1. However, the company has continued to outperform the competition, proving its strength and resilience during challenging times.

Data from Counterpoint Research shows that smartphone sales in the second quarter of 2023 are set to decline by 24% year-on-year. Samsung’s sales have decreased by 37%. Nevertheless, Apple’s iPhone sales declined marginally by 6%, increasing its market share from 52% to 55%. The company has performed similarly in the smartphone and PC market last year.

Apple is the most valuable company in the world, with a market capitalization of $2.8 trillion, and when its shares fall, they rarely stay down for long. The tech giant has a history of growing ahead of its competitors and the market. In fact, Apple’s stock is up 228% over the past five years, which is pretty high. Microsoft, AlphabetOr meta platform,

On August 3, after Apple posted disappointing results for its fiscal Q3, the company’s shares plummeted. They are down about 8% since the beginning of August. However, that downside has made them all the more attractive. Apple’s leading market share across multiple product categories, its expansion into AI and virtual/augmented reality, and its rapidly growing digital services business make it a solid investment opportunity.

Apple outperformed the declining tech sector in 2022, and its nearly 40% stock gain this year is boosting investors’ portfolios. The company is an excellent choice almost any time, but especially so in the midst of a market correction.

Susan Frey, an Alphabet executive, is a member of The Motley Fool’s board of directors. John McKay, former CEO of Amazon subsidiary Whole Foods Market, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Danny Cook does not have any position in any of the stocks mentioned. The Motley Fool has positions at and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

Source: www.fool.com

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