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Feb 17, 2021
The Massive Economic Benefit of A.I. that No One Talks About

The Massive Economic Benefit of A.I. that No One Talks About

Humans are bad at predictions. We’re emotional, we have biases, and we often shortchange research and analytics to go with our ‘gut feeling’ instead. There’s an old saying in economics, coined by former Federal Reserve Chairman Alan Greenspan, that the Federal Reserve has “accurately predicted nine of the last five recessions.”

Predictions are not our strong suit, yet business and investment decision-making often rely heavily on them. A CEO’s forecast for sales in a given quarter can impact everything from inventory to new hires, to the earnings forecasts made by analysts on Wall Street. For investors, our decision on how to invest, what types of securities to purchase, and how to allocate our portfolio – all of these decisions rely in great part on our predictions for what will happen in the future.

In short, in business and investment, we place a lot of emphasis on our ability to predict the future, which ultimately means we critically rely on one of our greatest weaknesses.

A.I.’s Economic Benefit: Lower the Cost – and Boost the Accuracy – of Prediction

Professor Ajay Agrawal, who teaches at the University of Toronto’s Rotman School of Management and founded a company called the Creative Destruction Lab, argues that A.I.’s single most transformative and important economic function is its ability to lower the cost of prediction.

Here’s an example Professor Agrawal offers to provide context. Consider Amazon’s recommendation engine, which in and of itself is a prediction application of A.I. Professor Agrawal’s team found Amazon’s tool to be about 5% accurate, meaning that out of every 20 items it recommends you buy, you buy one of them but not the other 19. While that sounds like a pretty low level of accuracy, one must also consider that Amazon picked those 20 items out of the millions upon millions of items in its vast catalog. On that basis, the tool is pretty darned good.

Every day, engineers and data scientists in Amazon’s machine-learning group are working to get those numbers higher, better. As the prediction tool becomes more accurate, perhaps we’ll end up buying 3 or 4 of the items in the recommended list of 20, increasing the economic value of the A.I. and also the revenue and profit model of the business.

The same logic and value-add apply to the investment world. Humans all too often let our emotions and biases play an outsized role in our forecasts for the markets, and that in turn affects our investment decision-making. Artificial Intelligence can remove the emotion completely from the equation, and it can also process more data in seconds than a human could in a year. With research, analytics, back-testing, and statistics, the A.I. can make a market prediction based on data. Humans simply cannot compete.

If You’re Wondering When A.I. Will Start Making Market Predictions…

Guess what – it already is. Hedge funds and large institutional investors have been using Artificial Intelligence to analyze large data sets for investment opportunities, and they have also unleashed A.I. on charts to discover patterns and trends. Not only can the A.I. scan thousands of individual securities and cryptocurrencies for patterns and trends, and it generates trade ideas based on what it finds. Hedge funds have had a leg-up on the retail investor for some time now.

Not anymore. Tickeron has launched a new investment platform, and it is designed to give retail investors access to sophisticated AI for a multitude of functions:

And much more. No longer is AI just confined to the biggest hedge funds in the world. It can now be accessed by everyday investors. Learn how on Tickeron.com.

Related Ticker: AMZN

Momentum Indicator for AMZN turns positive, indicating new upward trend

AMZN saw its Momentum Indicator move above the 0 level on July 07, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 74 similar instances where the indicator turned positive. In of the 74 cases, the stock moved higher in the following days. The odds of a move higher are at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AMZN's RSI Oscillator exited the oversold zone, of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for AMZN just turned positive on July 01, 2026. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 55 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .

AMZN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

AMZN moved below its 50-day moving average on June 05, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for AMZN crossed bearishly below the 50-day moving average on June 11, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for AMZN entered a downward trend on July 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.431) is normal, around the industry mean (6.742). P/E Ratio (31.596) is within average values for comparable stocks, (42.415). Projected Growth (PEG Ratio) (1.834) is also within normal values, averaging (1.303). Dividend Yield (0.000) settles around the average of (0.075) among similar stocks. AMZN's P/S Ratio (3.858) is slightly higher than the industry average of (1.542).

Notable companies

The most notable companies in this group are Amazon.com (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), PDD Holdings (NASDAQ:PDD), eBay (NASDAQ:EBAY), JD.com (NASDAQ:JD), Wayfair (NYSE:W), Chewy (NYSE:CHWY), Vipshop Holdings Limited (NYSE:VIPS), Revolve Group (NYSE:RVLV), Jumia Technologies AG (NYSE:JMIA).

Industry description

The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.

Market Cap

The average market capitalization across the Internet Retail Industry is 87.8B. The market cap for tickers in the group ranges from 622 to 2.62T. AMZN holds the highest valuation in this group at 2.62T. The lowest valued company is RBZHF at 622.

High and low price notable news

The average weekly price growth across all stocks in the Internet Retail Industry was 0%. For the same Industry, the average monthly price growth was -4%, and the average quarterly price growth was -24%. ZKH experienced the highest price growth at 30%, while IPW experienced the biggest fall at -19%.

Volume

The average weekly volume growth across all stocks in the Internet Retail Industry was 2%. For the same stocks of the Industry, the average monthly volume growth was -38% and the average quarterly volume growth was -5%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 55
P/E Growth Rating: 69
Price Growth Rating: 60
SMR Rating: 77
Profit Risk Rating: 92
Seasonality Score: -5 (-100 ... +100)
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General Information

a provider of on-line retail shopping services

Industry InternetRetail

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Industry
Internet Retail
Address
410 Terry Avenue North
Phone
+1 206 266-1000
Employees
1576000
Web
https://www.amazon.com
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