SCS-C02 education - AWS Certified Security ? Specialty Updated: 2024 | ||||||||
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Exam Code: SCS-C02 AWS Certified Security ? Specialty education January 2024 by Killexams.com team | ||||||||
AWS Certified Security ? Specialty Amazon Certified education | ||||||||
Other Amazon examsAWS-CSAP AWS Certified Solutions Architect - Professional (SOP-C01)AWS-CSS AWS Certified Security - Specialty ( (SCS-C01) AWS-CDBS AWS Certified Database-Specialty (DBS-C01) CLF-C01 AWS Certified Cloud Practitioner (CLF-C01) DOP-C01 AWS DevOps Engineer Professional (DOP-C01) DVA-C01 AWS Certified Developer -Associate (DVA-C01) MLS-C01 AWS Certified Machine Learning Specialty (MLS-C01) SCS-C01 AWS Certified Security - Specialty (SCS-C01) SAA-C02 AWS Certified Solutions Architect - Associate - 2023 SOA-C02 AWS Certified SysOps Administrator - Associate (SOA-C02) DAS-C01 AWS Certified Data Analytics - Specialty (DAS-C01) SAP-C01 AWS Certified Solutions Architect Professional SAA-C03 AWS Certified Solutions Architect - Associate ANS-C01 AWS Certified Advanced Networking - Specialty exam (ANS-C01) SAP-C02 AWS Certified Solutions Architect - Professional PAS-C01 SAP on AWS - Specialty Certification DOP-C02 AWS Certified DevOps Engineer ? Professional DVA-C02 AWS Certified Developer ? Associate SCS-C02 AWS Certified Security ? Specialty CLF-C02 AWS Certified Cloud Practitioner DBS-C01 AWS Certified Database ? Specialty | ||||||||
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Question: 75 A company wants to monitor the deletion of customer managed CMKs A security engineer must create an alarm that will notify the company before a CMK is deleted. The security engineer has configured the integration of IAM CloudTrail with Amazon CloudWatch What should the security engineer do next to meet this requirement? A. Use inbound rule 100 to allow traffic on TCP port 443 Use inbound rule 200 to deny traffic on TCP port 3306 Use outbound rule 100 to allow traffic on TCP port 443 B. Use inbound rule 100 to deny traffic on TCP port 3306. Use inbound rule 200 to allow traffic on TCP port range 1024-65535. Use outbound rule 100 to allow traffic on TCP port 443 C. Use inbound rule 100 to allow traffic on TCP port range 1024-65535 Use inbound rule 200 to deny traffic on TCP port 3306 Use outbound rule 100 to allow traffic on TCP port 443 D. Use inbound rule 100 to deny traffic on TCP port 3306 Use inbound rule 200 to allow traffic on TCP port 443 Use outbound rule 100 to allow traffic on TCP port 443 Answer: A Question: 76 A company is building an application on IAM that will store sensitive Information. The company has a support team with access to the IT infrastructure, including databases. The company's security engineer must introduce measures to protect the sensitive data against any data breach while minimizing management overhead. The credentials must be regularly rotated. What should the security engineer recommend? A. Enable Amazon RDS encryption to encrypt the database and snapshots. Enable Amazon Elastic Block Store $13$10 (Amazon EBS) encryption on Amazon EC2 instances. Include the database credential in the EC2 user data field. Use an IAM Lambda function to rotate database credentials. Set up TLS for the connection to the database. B. Install a database on an Amazon EC2 Instance. Enable third-party disk encryption to encrypt the Amazon Elastic Block Store (Amazon EBS) volume. Store the database credentials in IAM CloudHSM with automatic rotation. Set up TLS for the connection to the database. C. Enable Amazon RDS encryption to encrypt the database and snapshots. Enable Amazon Elastic Block Store (Amazon EBS) encryption on Amazon EC2 instances. Store the database credentials in IAM Secrets Manager with automatic rotation. Set up TLS for the connection to the RDS hosted database. D. Set up an IAM CloudHSM cluster with IAM Key Management Service (IAM KMS) to store KMS keys. Set up Amazon RDS encryption using IAM KMS to encrypt the database. Store database credentials in the IAM Systems Manager Parameter Store with automatic rotation. Set up TLS for the connection to the RDS hosted database. Answer: C Question: 77 A company deployed IAM Organizations to help manage its increasing number of IAM accounts. A security engineer wants to ensure only principals in the Organization structure can access a specic Amazon S3 bucket. The solution must also minimize operational overhead Which solution will meet these requirements? A. 1 Put all users into an IAM group with an access policy granting access to the J bucket. B. Have the account creation trigger an IAM Lambda function that manages the bucket policy, allowing access to accounts listed in the policy only. C. Add an SCP to the Organizations master account, allowing all principals access to the bucket. D. Specify the organization ID in the global key condition element of a bucket policy, allowing all principals access. Answer: D Question: 78 A company is undergoing a layer 3 and layer 4 DDoS attack on its web servers running on IAM. Which combination of IAM services and features will provide protection in this scenario? (Select THREE). A. Amazon Route 53 B. IAM Certificate Manager (ACM) C. Amazon S3 D. IAM Shield E. Elastic Load Balancer F. Amazon Guard Duty Answer: A,D,E Question: 79 Your CTO thinks your IAM account was hacked. What is the only way to know for certain if there was unauthorized access and what they did, assuming your hackers are very sophisticated IAM engineers and doing everything they can to cover their tracks? A. Use CloudTrail Log File Integrity Validation. $13$10 B. Use IAM Config SNS Subscriptions and process events in real time. C. Use CloudTrail backed up to IAM S3 and Glacier. D. Use IAM Config Timeline forensics. Answer: A Explanation: The IAM Documentation mentions the following To determine whether a log file was modified, deleted, or unchanged after CloudTrail delivered it you can use CloudTrail log file integrity validation. This feature is built using industry standard algorithms: SHA-256 for hashing and SHA-256 with RSA for digital signing. This makes it computationally infeasible to modify, delete or forge CloudTrail log files without detection. You can use the IAM CLI to validate the files in the location where CloudTrail delivered them Validated log files are invaluable in security and forensic investigations. For example, a validated log file enables you to assert positively that the log file itself has not changed, or that particular user credentials performed specific API activity. The CloudTrail log file integrity validation process also lets you know if a log file has been deleted or changed, or assert positively that no log files were delivered to your account during a given period of time. Options B.C and D is invalid because you need to check for log File Integrity Validation for cloudtrail logs For more information on Cloudtrail log file validation, please visit the below URL: http://docs.IAM.amazon.com/IAMcloudtrail/latest/userguide/cloudtrail-log-file-validation-intro.html The correct answer is: Use CloudTrail Log File Integrity Validation. omit your Feedback/Queries to our Expert Question: 80 A company is developing a highly resilient application to be hosted on multiple Amazon EC2 instances. The application will store highly sensitive user data in Amazon RDS tables The application must ⢠Include migration to a different IAM Region in the application disaster recovery plan. ⢠Provide a full audit trail of encryption key administration events ⢠Allow only company administrators to administer keys. ⢠Protect data at rest using application layer encryption A Security Engineer is evaluating options for encryption key management Why should the Security Engineer choose IAM CloudHSM over IAM KMS for encryption key management in this situation? A. The key administration event logging generated by CloudHSM is significantly more extensive than IAM KM $13$10 B. CloudHSM ensures that only company support staff can administer encryption keys, whereas IAM KMS allows IAM staff to administer keys C. The ciphertext produced by CloudHSM provides more robust protection against brute force decryption attacks than the ciphertext produced by IAM KMS D. CloudHSM provides the ability to copy keys to a different Region, whereas IAM KMS does not Answer: A Question: 81 A company wants to ensure that its IAM resources can be launched only in the us-east-1 and us-west-2 Regions. What is the MOST operationally efficient solution that will prevent developers from launching Amazon EC2 instances in other Regions? A. Enable Amazon GuardDuty in all Regions. Create alerts to detect unauthorized activity outside us-east-1 and us- west-2. B. Use an organization in IAM Organizations. Attach an SCP that allows all actions when the IAM: Requested Region condition key is either us-east-1 or us-west-2. Delete the FullIAMAccess policy. C. Provision EC2 resources by using IAM Cloud Formation templates through IAM CodePipeline. Allow only the values of us-east-1 and us-west-2 in the IAM CloudFormation template's parameters. D. Create an IAM Config rule to prevent unauthorized activity outside us-east-1 and us-west-2. Answer: B Question: 82 A company's Security Team received an email notification from the Amazon EC2 Abuse team that one or more of the company's Amazon EC2 instances may have been compromised Which combination of actions should the Security team take to respond to (be current modem? (Select TWO.) A. Open a support case with the IAM Security team and ask them to remove the malicious code from the affected instance B. Respond to the notification and list the actions that have been taken to address the incident C. Delete all IAM users and resources in the account D. Detach the internet gateway from the VPC remove aft rules that contain 0.0.0.0V0 from the security groups, and create a NACL rule to deny all traffic Inbound from the internet E. Delete the identified compromised instances and delete any associated resources that the Security team did not create. Answer: B,D Question: 83 A company is using Amazon Macie, AWS Firewall Manager, Amazon Inspector, and AWS Shield Advanced in its AWS account. The company wants to receive alerts if a DDoS attack occurs against the account. Which solution will meet this requirement? A. Use Macie to detect an active DDoS event. Create Amazon CloudWatch alarms that respond to Macie findings. B. Use Amazon Inspector to review resources and to invoke Amazon CloudWatch alarms for any resources that are vulnerable to DDoS attacks. $13$10 C. Create an Amazon CloudWatch alarm that monitors Firewall Manager metrics for an active DDoS event. D. Create an Amazon CloudWatch alarm that monitors Shield Advanced metrics for an active DDoS event. Answer: D Explanation: This answer is correct because AWS Shield Advanced is a service that provides comprehensive protection against DDoS attacks of any size or duration. It also provides metrics and reports on the DDoS attack vectors, duration, and size. You can create an Amazon CloudWatch alarm that monitors Shield Advanced metrics such as DDoSAttackBitsPerSecond, DDoSAttackPacketsPerSecond, and DDoSAttackRequestsPerSecond to receive alerts if a DDoS attack occurs against your account. For more information, see Monitoring AWS Shield Advanced with Amazon CloudWatch and AWS Shield Advanced metrics and alarms. Question: 84 A company is running internal microservices on Amazon Elastic Container Service (Amazon ECS) with the Amazon EC2 launch type. The company is using Amazon Elastic Container Registry (Amazon ECR) private repositories. A security engineer needs to encrypt the private repositories by using AWS Key Management Service (AWS KMS). The security engineer also needs to analyze the container images for any common vulnerabilities and exposures (CVEs). Which solution will meet these requirements? A. Enable KMS encryption on the existing ECR repositories. Install Amazon Inspector Agent from the ECS container instancesâ user data. Run an assessment with the CVE rules. B. Recreate the ECR repositories with KMS encryption and ECR scanning enabled. Analyze the scan report after the next push of images. C. Recreate the ECR repositories with KMS encryption and ECR scanning enabled. Install AWS Systems Manager Agent on the ECS container instances. Run an inventory report. D. Enable KMS encryption on the existing ECR repositories. Use AWS Trusted Advisor to check the ECS container instances and to verily the findings against a list of current CVEs. Answer: B Question: 85 A business stores website images in an Amazon S3 bucket. The firm serves the photos to end users through Amazon CloudFront. The firm learned lately that the photographs are being accessible from nations in which it does not have a distribution license. Which steps should the business take to safeguard the photographs and restrict their distribution? (Select two.) A. Update the S3 bucket policy to restrict access to a CloudFront origin access identity (OAI). B. Update the website DNS record to use an Amazon Route 53 geolocation record deny list of countries where the company lacks a license. C. Add a CloudFront geo restriction deny list of countries where the company lacks a license. D. Update the S3 bucket policy with a deny list of countries where the company lacks a license. $13$10 E. Enable the Restrict Viewer Access option in CloudFront to create a deny list of countries where the company lacks a license. Answer: A,C Explanation: For Enable Geo-Restriction, choose Yes. For Restriction Type, choose Whitelist to allow access to certain countries, or choose Blacklist to block access from certain countries. https://IAM.amazon.com/premiumsupport/knowledge- center/cloudfront-geo-restriction/ Question: 86 A company wants to remove all SSH keys permanently from a specific subset of its Amazon Linux 2 Amazon EC2 instances that are using the same 1AM instance profile However three individuals who have IAM user accounts will need to access these instances by using an SSH session to perform critical duties How can a security engineer provide the access to meet these requirements? A. Assign an 1AM policy to the instance profile to allow the EC2 instances to be managed by AWS Systems Manager Provide the 1AM user accounts with permission to use Systems Manager Remove the SSH keys from the EC2 instances Use Systems Manager Inventory to select the EC2 instance and connect B. Assign an 1AM policy to the 1AM user accounts to provide permission to use AWS Systems Manager Run Command Remove the SSH keys from the EC2 instances Use Run Command to open an SSH connection to the EC2 instance C. Assign an 1AM policy to the instance profile to allow the EC2 instances to be managed by AWS Systems Manager Provide the 1AM user accounts with permission to use Systems Manager Remove the SSH keys from the EC2 instances Use Systems Manager Session Manager to select the EC2 instance and connect D. Assign an 1AM policy to the 1AM user accounts to provide permission to use the EC2 service in the AWS Management Console Remove the SSH keys from the EC2 instances Connect to the EC2 instance as the ec2-user through the AWS Management Console's EC2 SSH client method Answer: C Explanation: To provide access to the three individuals who have IAM user accounts to access the Amazon Linux 2 Amazon EC2 instances that are using the same IAM instance profile, the most appropriate solution would be to assign an IAM policy to the instance profile to allow the EC2 instances to be managed by AWS Systems Manager, provide the IAM user accounts with permission to use Systems Manager, remove the SSH keys from the EC2 instances, and use Systems Manager Session Manager to select the EC2 instance and connect. References: AWS Systems Manager Session Manager - AWS Systems Manager: AWS Systems Manager - AWS Management Console: AWS Identity and Access Management - AWS Management Console: Amazon Elastic Compute Cloud - Amazon Web Services: Amazon Linux 2 - Amazon Web Services: AWS Systems Manager - AWS Management Console: AWS Systems Manager - AWS Management Console: AWS Systems Manager - AWS Management Console $13$10 Question: 87 A security engineer is using AWS Organizations and wants to optimize SCPs. The security engineer needs to ensure that the SCPs conform to best practices. Which approach should the security engineer take to meet this requirement? A. Use AWS IAM Access Analyzer to analyze the policies. View the findings from policy validation checks. B. Review AWS Trusted Advisor checks for all accounts in the organization. C. Set up AWS Audit Manager. Run an assessment for all AWS Regions for all accounts. D. Ensure that Amazon Inspector agents are installed on all Amazon EC2 in-stances in all accounts. Answer: A Question: 88 A company's security engineer has been tasked with restricting a contractor's IAM account access to the company's Amazon EC2 console without providing access to any other IAM services The contractors IAM account must not be able to gain access to any other IAM service, even it the IAM account rs assigned additional permissions based on IAM group membership What should the security engineer do to meet these requirements'' A. Create an mime IAM user policy that allows for Amazon EC2 access for the contractor's IAM user B. Create an IAM permissions boundary policy that allows Amazon EC2 access Associate the contractor's IAM account with the IAM permissions boundary policy C. Create an IAM group with an attached policy that allows for Amazon EC2 access Associate the contractor's IAM account with the IAM group D. Create a IAM role that allows for EC2 and explicitly denies all other services Instruct the contractor to always assume this role Answer: B Question: 89 A company is using AWS Organizations to manage multiple accounts. The company needs to allow an IAM user to use a role to access resources that are in another organization's AWS account. Which combination of steps must the company perform to meet this requirement? (Select TWO.) A. Create an identity policy that allows the sts: AssumeRole action in the AWS account that contains the resources. Attach the identity policy to the IAM user. B. Ensure that the sts: AssumeRole action is allowed by the SCPs of the organization that owns the resources that the IAM user needs to access. C. Create a role in the AWS account that contains the resources. Create an entry in the role's trust policy that allows the IAM user to assume the role. Attach the trust policy to the role. D. Establish a trust relationship between the IAM user and the AWS account that contains the resources. E. Create a role in the IAM user's AWS account. Create an identity policy that allows the sts: AssumeRole action. Attach the identity policy to the role. Answer: A,C Explanation: $13$10 Option A: Create an identity policy that allows the sts:AssumeRole action in the AWS account that contains the resources. Attach the identity policy to the IAM user. This will ensure that the IAM user has the necessary permissions to assume roles in the other account. Option C: Create a role in the AWS account that contains the resources. Create an entry in the role's trust policy that allows the IAM user to assume the role. Attach the trust policy to the role. This step is necessary to allow the IAM user from the other account to assume the role in this account. Explanation of other options: Option B: This option involves Service Control Policies (SCPs), which are used to define the maximum permissions for account members in AWS Organizations. While ensuring the SCPs allow the sts:AssumeRole action might be necessary, it doesn't directly allow cross-account role assumption. Option D: This option seems too vague and doesn't clearly explain how the trust relationship would be established. Trust relationships are generally established via trust policies, as mentioned in option C. Option E: This option suggests creating a role in the IAM user's account and attaching a policy allowing sts:AssumeRole to this role. This wouldn't be effective since the role that needs to be assumed would be in the other AWS account that contains the resources, not in the IAM user's own account. Question: 90 A company's AWS CloudTrail logs are all centrally stored in an Amazon S3 bucket. The security team controls the company's AWS account. The security team must prevent unauthorized access and tampering of the CloudTrail logs. Which combination of steps should the security team take? (Choose three.) A. Configure server-side encryption with AWS KMS managed encryption keys (SSE-KMS) B. Compress log file with secure gzip. C. Create an Amazon EventBridge (Amazon CloudWatch Events) rule to notify the security team of any modifications on CloudTrail log files. D. Implement least privilege access to the S3 bucket by configuring a bucket policy. E. Configure CloudTrail log file integrity validation. F. Configure Access Analyzer for S3. Answer: A,D,E $13$10 | ||||||||
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[{"ID":"partnerWFPRegisteredNurse-{4E0A5CF1-3C43-4713-A36A-7A6045F10084}","IsSelected":false,"DataOther":null,"Text":"No","Value":"No"},{"ID":"partnerWFPRegisteredNurse-{01538BC5-9171-451C-BA35-16C40E34BE2B}","IsSelected":false,"DataOther":null,"Text":"Yes","Value":"Yes"}] It looks like you don’t meet the application requirements for this program. But don’t worry — our admission counselors can help find the right pathway for you. Contact us today at 888.387.0861 or enroll@snhu.edu. We’re sorry. Applicants must be registered nurses or within 3 months of US state nursing licensure. Please select another program. It looks like you don’t meet the application requirements for this program. But don’t worry — our admission counselors can help find the right pathway for you. Contact us today at 888.387.0861 or enroll@snhu.edu. By clicking “Get Info”, I agree to receive emails, phone calls, and SMS/Text Messages from Southern New Hampshire University (SNHU) at the numbers I provided (land and/or wireless), including calls or texts made using automated technology or prerecorded voice messages. This consent is not required to purchase services, you may also call SNHU at 800.668.1249. Terms and Conditions apply.
Sustainability initiatives have been organised for most of the agricultural commodities of the Pan Amazon, including palm oil, soy and beef, but also for coffee and cacao. Several of these initiatives have adopted the term roundtable in their names because it conveys the notion of inclusiveness that is a core concept in these multi-stakeholder initiatives. Typically, the stakeholders include all the participants in a supply chain, from the farmer to the retailer, but also commodity traders, consumer goods manufacturers, banks and service supplies, as well as civil society groups. Their shared goal is to identify effective solutions to the social and environmental challenges associated with conventional production systems. The mechanism used to reform supply chains is typically a voluntary certification system that verifies that the production, trade and transformation of a commodity has complied with a set of best practices that have been agreed to by all the parties. The search for consensus is important, because it means all of the stakeholders have agreed to accept this package of solutions and commit to supporting the commercialisation of the goods that have been certified as sustainable. Some environmental activists view these initiatives as a form of greenwash and have questioned their efficacy. Participating companies certify the production within their own supply chain, but roundtable initiatives have not succeeded in transforming their respective sectors. Demand for certified commodities has failed to attract a critical mass of producers that would actually transform the market and change the economic drivers of deforestation. Adoption is highest for coffee (40%) and cocoa (22%), while commodities linked to industrial plantations tend to be lower: palm oil (20%), sugar (3%) soy (2%) and beef (<1%). Part of the explanation for the slow uptake of the voluntary standards is the lack of demand; typically, only about fifty per cent of certified production is actually sold as a certified commodity. The lack of uptake is yet another manifestation of the dilemma of allocating the cost of environmental protection and social justice. Sustainability protocols cost money, which either adds to the price of a consumer good or reduces the profit margin of commodity producers. Although North American and European consumers are concerned about deforestation, most still choose a lower-cost product, while those in Asia, Latin America and the Middle East are overwhelmingly focused on price. Moreover, global commodity markets are dominated by producers on landscapes that were transformed by agriculture decades or centuries in the past, and these farmers operate without fear of being accused of environmental crimes. Consequently, traders are not motivated to pay a premium to farmers on the agricultural frontier. A few producers seek to differentiate their products as organic, deforestation-free, fair-trade or antibiotic-free because they are selling their products into a differentiated market and receive a premium for their production in compensation for the extra cost and reduced yields that these systems [allegedly] entail. Others participate because it guarantees them market access. Most producers opt to circumvent the voluntary guidelines or sell to traders unconcerned about sustainability or just ignore the whole process entirely. Social advocates have questioned the economic benefits of certification because they tend to discriminate against small-scale producers who cannot meet the record-keeping and logistical demands of a certification process. These protocols are negotiated by large-scale producers that dominate the roundtable initiatives and tailor the certification criteria to their supply chains. As formalisation spreads throughout national and international markets, smallholders could be increasingly marginalised within regional and even local markets in contradiction with the stated social objectives of these certification schemes. “A Perfect Storm in the Amazon” is a book by Timothy Killeen and contains the author’s viewpoints and analysis. The second edition was published by The White Horse in 2021, under the terms of a Creative Commons license (CC BY 4.0 license). Read the other excerpted portions of chapter 3 here: Chapter 3. Agriculture: Profitability determines land use
2023 was largely a tale of two markets. The “S&P 493” (roughly two-thirds of the index, by market cap) was up 20.3% (on average), while the seven largest mega-cap stocks (i.e. "The Magnificent 7”) were up ~100%, on average (see table below). In this report, we rank each of the Magnificent 7 stocks for 2024, with a special focus on Amazon (NASDAQ:AMZN) (including an update on its business, its four big growth opportunities, valuation and risks). We conclude with our stern opinion on investing in Amazon (and the Magnificent 7) in 2024, especially as compared to non-mega-cap growth stock opportunities. The Magnificent 7For some perspective, here is a look at the performance of the Magnificent 7 for 2023 (they are ranked by market cap in the table). They all dramatically outperformed the S&P 500 for the year, but this comes after a weak 2022 (see the 2-year total returns column). (AAPL) (MSFT) (GOOGL) (GOOG) (NVDA) (META) (TSLA) You’ll also notice in the table above that Wall Street’s consensus rating for all of these stocks is significantly better than the S&P 500 (note: a 1.0 rating is a “strong buy” whereas a 5.0 rating is a “strong sell”). Also worth mentioning, you can see how they compare on various valuation metrics, such as price-to-earnings and price-to-sales, but there is always more to the story than just those numbers (more on this later). Also, for a little more perspective, here is a look at just how lopsided performance was in 2023 (i.e. an unusually large percentage of individual stocks (72%) underperformed the S&P 500 because the gains were dominated by the “magnificent 7” representing ~one-third of the total market cap). Next, we’ll take a closer look at one of the magnificent 7 stocks in particular, Amazon. AmazonMany people think of Amazon as the website where you search for whatever you want, click “buy,” and then it shows up at your home or office some days later. And while that part of its business generates the majority of its revenues (84%), basically all of the profits come from its cloud-data hosting service (Amazon Web Services, AWS), which makes up only 16% of the revenues. So with that high-level backdrop in mind, let’s get into the four big factors that we see driving growth for Amazon in 2024 and beyond. 1. Amazon Web Service (“AWS”), Despite CompetitionAmazon Web Service is the leader in the cloud market because Amazon had the foresight to recognize the massive secular opportunities ahead of the traditional big boys, like Microsoft, Google and others (and because Amazon had an infrastructure head start via its online marketplace). You can see the recent worldwide cloud market share in the following graphic. (BABA) (IBM) (CRM) (ORCL) (OTCPK:TCEHY)
Cloud competition is absolutely a concern for Amazon, but it is important to keep it in perspective. Specifically, Amazon is still the worldwide cloud leader, it is very profitable in this space, and it is still growing rapidly. Moreover, the cloud opportunity (and the digitization of everything) remains perhaps the biggest technology secular trend in the world, expected to continue growing rapidly for many years, and recently being accelerated by Artificial Intelligence (more on Amazon AI later). 2. Ads Are Coming to Prime VideoThe next big theme that will impact Amazon’s business in 2024 and beyond is the addition of advertising to Amazon Prime videos (expected to begin near the end of January). Amazon Prime is a subscription service that gives users access to additional services (including faster delivery, streaming music and videos, and more). According to this article, customers will be able to pay an additional $2.99 per month to avoid ads (a prime membership costs $14.99 per month or only $139 if you pay annually). According to the company
Considering the large size of Amazon Prime (over 200 million customers worldwide), ads have the potential to meaningfully move the revenue needle for the company. 3. Artificial Intelligence Is HereWith technological advances in artificial intelligence, it has become a major theme (and growth driver) across businesses in every sector. And Amazon is also looking to capitalize on AI opportunities. According to the company:
Given the profound impact AI is expected to have on the economy, it’s important that Amazon stays at least on pace with the curve so as to not be left behind (as many slower movers inevitably will be). The company says it is also using AI beyond AWS, including helping customers better discover products that meet their needs, forecasting inventory levels, and improving delivery, to name a few. 4. The Andy Jassy FactorAndy Jassy joined Amazon in 1997, he founded AWS, and he became CEO (succeeding Jeff Bezos) in 2021. Bezos wisely left near the peak of the pandemic bubble (he went out on top), and Jassy has been at the helm while the market bubble burst, and we believe he now has something to prove. Specifically, Jassy is a winner (he went to Harvard and founded the largest cloud service in the world, AWS), but his compensation has been terrible because it has been tied to the stock price (which has not been great during his short-term as CEO so far). For example, Jassy’s pay was just $1.3 million in 2022 (tiny for a mega-cap CEO) because, again, it is tied mainly to stock performance (which was terrible in 2022). Jassy’s compensation will likely be much bigger for 2023 (Amazon shares were up 80%), but we suspect he still has a lot more to prove. We like Jassy as CEO and suspect he will do big things with success in the years ahead (such as growing AWS, succeeding with advertising initiatives and prudently implementing AI initiatives). Amazon’s ValuationAs you can see in our earlier table, Amazon has the second lowest forward PEG ratio (i.e. Price/Earnings/Growth (lower is better)) among the Magnificent 7 (second only to Tesla, which we view as a much more volatile and risky business). Also, don’t be misled by Amazon’s low price-to-sales ratio (it's attractive, but not as attractive as it may seem considering the low margins on the Amazon online marketplace business). However, the forward revenue growth rate is strong, Wall Street rates the shares very highly versus mega-cap peers and (unlike most other mega-caps) Amazon shares are still well below their all-time high. In our view, Amazon is a healthy growing business, benefiting from large secular trends and with a highly competent CEO at the helm. Amazon’s RisksLike any company, Amazon faces a variety of risks. For example, the introduction of ads on Prime could backfire. The company may lose customers over it if not done correctly (especially considering there are a variety of streaming competitors). Initially, the magic of streaming was that there were no ads, but as that now changes and competition has increased, Amazon Prime Ads may not be a slam dunk. Another risk is that Microsoft Azure and Google Cloud are both growing faster than AWS. Fortunately, the cloud is a very big place (and is expected to keep growing rapidly for many years, see our earlier chart from Grandview Research) so there is room for multiple big winners. Nonetheless, AWS competition is a risk. Another risk is share price volatility. Recall these shares were down dramatically in 2022, up dramatically in 2023, and they could again be volatile in 2024. So with that information on Amazon, let’s briefly consider the other Magnificent 7 stocks, before drawing a few final conclusions. The Other Magnificent 7 Stocks:
Ranking The Magnificent 7:We wouldn’t bet against the Magnificent 7 in 2024, but we do believe some may perform meaningfully better than others, and that investors may want to reconsider the size of their allocations to these stocks in their portfolios. For 2024, we’re breaking the Magnificent 7 into three tiers: Tier 3: If the market’s aggregate taste shifts from growth to value in 2024, Apple may be the winner. It is arguably one of the steadiest Magnificent 7 stocks (people aren’t going to get rid of their iPhones, even if the market crashes). But Apple has the lowest expected growth rate and trades at a fairly rich forward PEG ratio. The business is still better than most companies in the world, just not necessarily better than the other Magnificent 7 stocks, in our opinion. Tier 2: We’re putting Tesla in this group as the valuation has gotten stretched, and Elon will need to pull another rabbit out of his hat (in an election year, no less, when he’ll inevitably be putting out fires at Twitter (now “X”)). We could end up being very wrong on this one, but Tesla is Tier 2 here. Tier 1: We like Amazon, Alphabet, Microsoft, Meta and Nvidia, but the question is how much of them you want to hold. They make up a truly enormous percentage of the U.S. (and global) market cap, and it could be quite risky to avoid them altogether. However, considering the tremendously strong performance in 2023, you may or may not want to be “overweight” these names for 2024. For a little more perspective, we offer a few non-mega-cap growth stock alternatives and ideas below. Non-Mega-Cap Growth AlternativesWe noted above how the Magnificent 7 dominated the markets in 2023, but if you actually look closer, there were plenty of non-mega-cap growth stocks that also performed extremely well (in most cases, rebounded very hard), and may be poised for strong gains again in 2024. For example, check out the following table which includes top-performing non-mega-cap growth stocks in 2023, that are also rated very highly by Wall Street. In fact, many of them have dramatically more price appreciation potential than the Magnificent 7, as per Wall Street analysts, as you can see in the following table. (SMCI) (CRWD) (UBER) (PANW) (MDB) Also, here are the same data points for highly rated non-mega-cap growth stocks that underperformed the market in 2023. These names have a ton of upside potential in 2024, as per Wall Street, as you can see in the table below. If you are looking to diversify away some of your exposure to the Magnificent 7 (especially after the incredible 2023 performance), you might find a few worthwhile ideas in the data above. ConclusionDespite the strong 2023 performance, Amazon (and the Magnificent 7, in general) remain extremely attractive businesses. Amazon in particular, is the only Magnificent 7 stock that still sits well below its all-time high (other than Tesla, which we view as a wildcard, especially considering the distractions CEO Elon Musk increasingly faces). And despite Amazon’s incomplete price rebound (so far), it has some extremely attractive qualities, such as AWS, the launch of advertising, AI, current valuation, and CEO Andy Jassy. Some investors believe the market’s infatuation with “The Magnificent 7” has gone too far, and now prefer to focus on smaller, lessor known, growth stocks with potentially much more upside (such as those we shared in the tables in this report). However, considering the Magnificent 7 makes up such a large (and important) part of the global market cap, we’re absolutely not willing to completely sell out of them altogether. Regarding Amazon, we’re currently long-shares (in our Disciplined Growth Portfolio) and have no intention of selling anytime soon. In 2023, EdSurge published a record number of stories on early care and education — the most we’ve run since we began covering the age group nearly five years ago. So this year, for the first time, we’re bringing you a list of the stories that resonated most with you, our readers. Below, you’ll find our 10 most popular early childhood stories from the last 12 months, which can loosely be divided into two camps. In one, we have several stories that dive into the dire conditions of the early learning sector today and what’s at stake now that pandemic-era federal funding has expired. Why is this field so fractured and fragile? What happens now that early learning programs have gone over the “fiscal cliff”? In the other, we have stories of hope and resilience. In these, our reporters and contributors explore possible solutions and promising innovations underway that may offer a salve to this struggling field, now that broad federal investment in early education is highly improbable. These stories include local efforts, private sector contributions and public-private partnerships that, in many cases, can be scaled up. Check out our most-read stories of 2023 below. And if 10 isn’t enough, you can read all of our early childhood coverage here. 10. How a Small Town in a Red State Rallied Around Universal PreschoolBy Emily Tate Sullivan In 2017, kindergarten readiness rates in American Falls, a one-stoplight farming community in conservative Idaho, hit “rock bottom.” Then a school leader launched a campaign encouraging families to “read, talk, play” with children every single day. That simple mantra became a movement, and today, the town has embraced a goal of universal preschool. Our reporter visited American Falls to find out exactly how this transformation unfolded. 9. The Child Care Cliff, A Cautionary TaleBy Rebecca Gale and Dianne Kirsch What is the child care cliff, and why should people care? Those are the questions Rebecca Gale and Dianne Kirsch teamed up to explore with their graphic story. In a series of illustrations, the duo unpacks the child care cliff, what happens after federal funding for child care runs out and why we need to support efforts to invest in child care infrastructure. 8. Child Care Programs See Closures, Resignations and Tuition Hikes After Federal Funding ExpiresBy Emily Tate Sullivan It’s been a few months since $24 billion in child care stabilization grants expired, sending the nation’s early care and education programs over the so-called fiscal cliff. Without a stopgap funding solution, the problems those dollars helped paper over are resurfacing. We spoke with educators and families in West Virginia to understand what that historic funding enabled them to do — and the “impossible choices” they now face. 7. What to Know About the Growing Popularity of Employer-Sponsored Child CareBy Emily Tate Sullivan Employers are increasingly getting involved in child care, offering perks such as on-site care and monthly stipends to offset costs. Last May, EdSurge published an in-depth story about this growing trend and the controversy surrounding it. The next month, we ran a separate story about the top takeaways from our reporting on employer-sponsored child care — our “TL;DR” version. 6. We Need Better Pathways for Becoming an Early Childhood TeacherBy Jay Lee “Access to high-quality early childhood education is among the most powerful, proven ways to close equity gaps and support communities,” writes Jay Lee, an early childhood teacher in Oakland, California. But there aren’t enough teachers. Why, then, Lee wonders, is it so difficult to become a certified early childhood teacher? In his essay, Lee explores why building inclusive, accessible pathways is key. 5. Federal Government Launches First-of-Its-Kind Center for Early Childhood WorkforceBy Emily Tate Sullivan Challenges facing the early care and education workforce have reached crisis levels since the pandemic began, and the federal government has taken notice. No, the feds are not offering universal pre-K or capping the cost of child care (at least not yet), but they have launched a first-of-its-kind ECE Workforce Center to improve compensation and working conditions for the field. And they’re looking to produce real solutions, not just research reports. 4. Who’s Looking Out for the Mental Health of Infants and Toddlers?By Emily Tate Sullivan There’s been a lot of attention lately on the mental health crisis among teens. But what about younger kids? Children of all ages — even babies — can suffer from mental health issues, and they were not immune to the stressors caused by the pandemic. We talked with experts to find out what it looks like when infants and toddlers are struggling — and why early intervention is essential. 3. Did Covid Break Child Care or Was It Already Broken? A Brief Visual ExplainerBy Rebecca Gale and Dianne Kirsch “The U.S. child care system isn’t working for anyone. Without sustained federal investment, it will remain broken,” writes Rebecca Gale, a reporting fellow at Better Life Lab at New America. This visual explainer, which Gale collaborated on with illustrator Dianne Kirsch, explains why. 2. As Bezos Academy Preschools Spread Nationally, Early Childhood Experts Weigh InBy Lilah Burke Five years ago, Amazon founder Jeff Bezos announced plans to donate money to launch a chain of free preschools. As of May 2023, the Bezos Academy network had more than a dozen sites across Washington, Texas and Florida. Here’s what has pleasantly surprised early childhood experts about the new Montessori-style programs — and what has left them less than impressed. 1. What Happens When You Give Child Care Providers Money — With No Strings Attached?By Emily Tate Sullivan What happens if you give child care providers predictable, unconditional cash? That’s the question driving the Thriving Providers Project, a pilot launched in Colorado and expanding to cities across the country. The initiative hinges on the idea that guaranteed income will improve caregivers’ economic stability and, in turn, allow them and the families they serve to thrive. We take a close look at how it works and how it’s going. Whether you're famous for your homemade holiday cookies or just want a festive place to store Santa's chocolate chips, this ceramic jar is a must. Standing nearly a foot tall, it's hand-painted and made from sturdy earthenware, ensuring it'll last decades. Plus, at $45, it's currently nearly half off the list price of $78. The mission of the Dual Special Education Program is to develop competent, caring, and ethical educators who are able to meet the diverse learning needs of all students across a variety of age, grade, and ability levels. The preparation program will facilitate competence in areas of academic, social, and emotional growth, and methods of maximizing a student’s capabilities through diagnostic and instructionally adaptive practices. The Dual Special Education Certification program prepares candidates to work with special needs populations in pre-kindergarten through twelfth grades (PK-12). Students will follow the requirements for an initial certification program in Elementary and Early Childhood Education, Middle Level Education, or Secondary Education with a few course substitutions permitted as noted below, in addition to completing the extra requirements for the Special Education program. Special Education is a concentration that students may add to their initial program in order to qualify for dual certification. Elementary and Early Childhood Education Major with Dual Special Education CertificationStudents majoring in Elementary and Early Childhood Education with a concentration in Special Education PK-12 will complete the following courses in addition to the afore-cited Elementary and Early Childhood program requirements (not the course substitutions permitted):
Special Education certification candidates will complete half their student teaching in a special education setting and half in a regular education setting. Middle Level Education Major with Dual Special Education CertificationStudents majoring in Middle Level Education with a concentration in Special Education PK-12 will complete the following courses in addition to the afore-cited Middle Level Education program requirements (not the course substitutions permitted):
Special Education certification candidates will complete half their student teaching in a special education setting and half in a regular education setting. Secondary Education Minor with Dual Special Education CertificationStudents minoring in secondary education with a concentration in Special Education PK-12 will complete the following courses in addition to their specific program in the major:
Special Education certification candidates will complete half their student teaching in a special education setting and half in a regular education setting. | ||||||||
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