2 Nasdaq Stocks to Buy in June

Group 1: Nasdaq vs S&P 500 Performance - The Nasdaq Composite's return of 275% over the last 10 years significantly outpaces the S&P 500's return of 178% [1] - The Nasdaq is characterized by tech-centric companies that drive change and innovation, presenting stocks with high growth potential [1] Group 2: Alphabet Overview - Alphabet's shares have recently surged despite concerns over competition, recession fears affecting advertising, and potential breakup risks [3] - The company has achieved double-digit growth in revenue and earnings over the last decade, with the stock doubling in the last five years and trading at a forward price-to-earnings multiple of 18 [4] - Alphabet generates 56% of its revenue from its search business, which faces competition from AI models like OpenAI's ChatGPT [5] Group 3: Alphabet's Competitive Position and Growth Potential - Alphabet has developed strong AI technology and infrastructure, including investments in Tensor Processing Units (TPUs) and quantum computing [6][7] - The company generated $75 billion in free cash flow on $360 billion of annual revenue, with expected earnings per share growth of 15% annually [8] - Investments in data centers, Gemini, and cloud services position Alphabet to capture a significant share of a $1 trillion AI opportunity [8] Group 4: Amazon Overview - Amazon's stock has risen 144% since bottoming out in 2022, outperforming the Nasdaq's return of 83% [9] - The company shows solid revenue growth, with cost reduction efforts in retail and growth in cloud computing enhancing profitability [9] Group 5: Amazon's E-commerce and Cloud Computing - Amazon's online store revenue grew 6% year over year to $57 billion, with essential goods sales growing faster than other segments [10] - Amazon Web Services (AWS) leads the $348 billion cloud computing market, generating $112 billion in revenue with a 17% year-over-year increase in the first quarter [11] - AWS is experiencing triple-digit growth in AI services, indicating a significant long-term growth opportunity for Amazon [12] Group 6: Amazon's Future Outlook - Management believes AWS could generate hundreds of billions in revenue long-term, with increasing demand trends supporting this outlook [13] - The stock trades at 33 times trailing earnings, suggesting potential for market-beating returns given the expected double-digit earnings growth [13]