7 Stocks to Buy BEFORE Amazon Buys Them

Hey bow tie Nation Joseph hog here with what's becoming the most popular series on the channel a look into the stocks being targeted by the biggest tech companies we highlighted nvidia's purchase of six stocks last week with the chipmaker spending hundreds of millions of dollars ownership as high as 8% in these companies those stocks are up an average 64% in the last 6 months as the companies grow into the potential and the reasons Nvidia is buying but that is nothing compared to what I found when I followed the money Amazon is spending buying over $2. 2 billion in shares of 10 companies in fact Amazon has over $1. 7 billion in a single company and owns almost 16% of the total shares issued I'll reveal all 10 stocks Amazon is buying along with the seven stocks to watch and how to use these Insider reports in your own stock research this first stock Amazon is buying is also its largest ownership stake air Transport Services Group ticker atsg Amazon owns 12.

7 million shares worth almost $280 million almost 20% of the total company Air transport offers a complete air Leasing and support services to Blue Chip companies in both passenger and Freight leasing aircraft Freight operations maintenance and servicing leases but now this investment is likely different for Amazon than some of the others on the list this one isn't for that big return or for the exposure into fast growing technology as it is a Strategic investment with its major controlling interest in atsg Amazon has a partner in its Freight delivery with Air transport providing and leasing planes to the company now atsg isn't a fast growing company with Revenue down slightly this year and expected up just 4% next year to $2. 1 billion in sales it's also not terrifically cheap at this point at a 20 times expected earnings though this one does have that very dependable cash flow with its Amazon tie-up now it's possible this one could be a takeover Target by Amazon in the future so there is some upside potential and the revenue growth is Dependable but it's not the growth stocks others on the list could be we're just getting started into our list of stocks Amazon is buying but the only thing better than following these Tex giants into these publicly traded stocks is buying in before the market all of you out there in the nation know I come from this Venture Capital world of pre-ipo startup companies and can tell you there is no better opportunity for returns it's how Peter teal made over 4,000% 40 times his money as an early investor in Facebook and now Elon Musk made his first billion with PayPal it's also why I'm always on the lookout for great investing platforms from that startup scene letting you in on these types of investments before they issue stock and I've just found one that offers more deals than any I've seen link do gives you access to high growth startups like anthropic and its AI model Cloud one of the top three AI models along with chat GPT and Gemini you can also invest in digital assets platform Ripple musk SpaceX and his X AI startup and the best part is this is one of the most accessible early stage platforms I've seen with a minimum investment of just $2,500 to start signing up takes less than 5 minutes and you'll be able to get a referral code to make $1,000 anytime some someone you know signs up now the downside is right now this is only open to accredited investors so make sure you look for the special invite link I'll leave in the description or scan the QR code here to see if you qualify next on the list aera Labs tooker alab just went public in April of this year and was available on the link 2 platform before that and is already up 86% on the Boom in AI stocks Amazon owns over 277,000 shares of the company a relatively low stake of just. 17% worth $27 million now even at a very expensive valuation we're going to see later aera may be one of the best ideas on the list the company offers connectivity and networking Solutions which while so far I've gone under the radar in that AI boom could be the next big bottleneck in artificial intelligence that's because the immense amount of data and processing going on in those AI models is going to stress out the current system for connectivity and networking with only companies like aera being built specifically for that higher demand in AI able to provide the solutions revenue is expected to grow 60% next year to $615 million with earnings already positive and expected to a $117 a share but this is still a tiny company on its financials well tiny until you consider the valuation even on that expected revenue and earnings Shares are trading for 27 times sales and 82 times on a price to earnings basis now that is terrifically expensive so if you are buying shares here I would hold back some money in case we see better prices but the company's position in that data center connectivity and networking theme should mean it grows into that valuation over the long term and produces solid returns ion Q ticker IQ could be the next big theme after artificial intelligence the speed of quantum Computing Amazon owns just over 1.

9 million shares here worth $57 million almost 1% ownership of the company so already here we see that Amazon is making much bigger Investments than Nvidia did in its stocks investing tens of millions and even billions in a stock that I'll show you later it's also investing for different reasons though whereas most of nvidia's stocks seem to be geared towards the nurturing companies in that AI space those that would be buying Nvidia chips Amazon is taking a broader View and investing across Next Generation Technologies ion Q is positioning to be a leader in Quantum Computing that next generation of processing speed and a market it estimates to be worth as much as $850 billion by 2040 across everything from AI to cryptography for a long time seen as nothing more than fantasy Quantum Computing uses the laws of quantum mechanics to solve problems too complex for even the most advanced computers today explained it's computing power that could be 100 million times faster than a regular chip of course we're still extremely early in this technology and even a leader like ion Q isn't quite there yet though it's still got some smaller scale products out while revenue is expected to Surge 88% this year and 99% next it's only at $83 million in sales so this investment is also very much ahead of its time and again here we see some almost comically expensive valuations on the stock it's still posting negative earnings so no PE ratio but on a price to sales basis it's at 79 times even next year's expected Revenue but even that might not matter when Quantum Computing becomes a reality because this will be a hundred billion doll company at that point but it's also likely further out than even the upside in aera lab so maybe dip your toe in now but put this one on your radar for later we've still got four Amazon stocks to highlight but remember we know the company is buying these because every company or large Institutional Investor is required to f a form 13f with the Securities and Exchange Commission the SEC disclosing their investments in publicly traded stocks now that disclosure is meant to help the SEC head off any possible stock price manipulation by these big hedge funds and other big money Players but can also be used by investors to jump in on those Investments ahead of an acquisition or just a bump in the share price you can always find these 13f filings by going to the SEC Edgar database and searching for the company name then clicking through wherever you see the most recent 13f report a list of those Investments Now understand there are different reasons a company might buy shares in another and it could mean a difference in returns for investors for example first as in the case of Nvidia buying shares of arm it's getting a say in the shares of a major supplier arm licenses the architecture that goes into semiconductors so it's a critical component for not just Nvidia but also Intel and AMD Nvidia was blocked by the FDC from buying the company outright but an investment gives it a spot at the table a company may also be interested in a future takeover over of another and want to get its foot in the door with a large block of shares to to ward off rival buyers this is likely the case with Amazon and its ownership of Air transport group with nearly a fifth of the company and then there's also just the good old return drivers for investment companies like Amazon and Nvidia are cash machines generating tens of billions of dollars in cash each year and at times they run out of projects to reinvest that money back into their company so they're looking for stocks to buy you'll notice in all these stocks or in the Nvidia video that the buyers have inside information into these stocks within their sectors they know which companies are going to do best and they're investing in them but you know as we say here on the channel it ain't all rainbows and unicorns and there is a warning to using these 13f reports to invest first is that companies have 45 days after their quarter in to report these to the SEC so there is a big lag in the investment most of these stocks are held longterm so it's not a matter of Amazon buying then and then dumping on a quick return but understand there is a lag to that reporting also though you'll see these stocks just when that 13f is reported and often will give up some of those gains in the months following I always recommend use these 13f filings as a heads up to find the stocks to start your research if it looks like a good buy then maybe invest some right away but leave some cash aside to invest if the price comes down later for example shares of SoundHound AI jumped nearly 70% in February when Nvidia reported its stake in the company the stock surged another 133% over the next month as investors rushed in but in enthusiasm died back down quickly after for patient investors though the stock has jumped back up again as that growth theme plays out and the shares are up 274 this year alone Amazon's investment in shares of Marvel technology tier mrvl isn't even a blip in the ownership terms the tech giant owns just 225,000 shares worth almost $20 million of the $76 billion data infrastructure and Chip architecture company and while that might not be much in ownership terms you don't want to overlook this company either revenue is expected 35% higher next year as we move into that massive data center buildout that's going to benefit Marvel and earnings are expected 73% higher to $253 a share now on those expectations the shares aren't nearly as pricey as others on the list trading for about 35 times on a Ford PE basis just over 10 times its Revenue Amazon's largest dollar investment is in shares of electric truck manufacturer rivian Automotive took her RV in Amazon owns over 158 million shares worth 1 . 9 billion and more than 15% of the shares issued while shares of rivian have been under pressure along with all things EV on fears that President elect Trump is going to kill subsidies to the industry rivan has the Partnerships and the cash flow it needs to grow and and become the EV truck maker rivian is a major supplier of trucks to Amazon delivering over 10,000 electric vans with a contract for up to 100,000 rivian decided to end its exclusivity earlier this year freeing it up to sell to others but on that 15% ownership stake the partnership is still very strong the company has also partnered with Volkswagen in a $5. 8 billion deal to share software and electrical architecture that Shores up immediate cash flow needs for the company and here rivan just announced last week approval for a$ 6.

6 billion loan from the government to build out its Georgia production facility so here while cash flow and earnings are still negative the company has the cash it needs to keep growing with estimates for 133% growth next year to $5. 3 billion and so if rivan can reach that point in production like Tesla did where the costs come down on scale this could be the best deal on the list it's already cheap here at just over 2. 3 times on the price to expected sales basis has the flexibility to become the leader in EV trucks twio Inc tier twwo was a pandemic darling promising to help businesses reach customers wherever they are the stock has come down since but are up 63% this year with Amazon holding 1.

7 million shares worth almost $182 million just over 1% ownership in the company twio offers a complete customer engagement Solution on one platform from messaging to emails phone calls and all driven by developing AI technology for some of the largest companies out there this isn't exactly a growth stock anymore with sales expected up just 6% this year and under 8% growth next to $4. 8 billion though it is cash flow and earnings positive so quite a bit less risk on this one shares aren't particularly cheap but then again nothing is after this year's bull market the stock is trading for about 24 times expected earnings and just three times on a price to forecasted sales basis which may seem cheap but on that kind of growth not so much I'll show you those last four Amazon stocks later including the three that I wouldn't be buying at this point but you won't want to miss our prior video on the stocks Nvidia is buying the chipmaker is becoming a cash machine and putting that money to work and the company's about to take over that AI Revolution so check that video out next vital Farms ticker vitl has surprisingly strong growth for the agricultural space and is up 159% in the last year Amazon owns 1. 5 million shares worth just over $50 million or about 3.