The serverless stack offers an innovative approach to building web applications by allowing developers to focus on writing stateless functions, which are executed based on specific events rather than relying on high-maintenance servers. This framework enables organizations to scale applications on-demand, reduce overhead costs, and minimize administrative tasks, as cloud service providers handle resource allocation, security updates, and other technical details. However, serverless applications may face challenges such as cold starts, which can lead to initial latency and timeout issues. To mitigate these, developers can employ strategies like caching event calls or using tools like serverless-webpack for optimization. The tutorial provided guides users through the setup and development of a serverless, microservice-based application using Node.js, Express, and MongoDB, and highlights the benefits of faster deployment cycles and vendor-agnostic cloud support. Despite some pre-configuration steps not covered, the tutorial aims to demonstrate the ease of converting traditional applications to serverless architecture, emphasizing the potential for quick innovation and market delivery.