7 Stocks to Buy BEFORE Amazon Buys Them

Summary

In this video, Joseph Hog highlights Amazon's strategic stock investments, focusing on 10 companies the tech giant has bought into, totaling over $2.2 billion. Amazon's largest stake is in Air Transport Services Group, a key partner for its freight delivery, with additional investments spanning AI, quantum computing, electric vehicles, and data infrastructure. Hog also explores the rationale behind these investments, from partnerships to future acquisitions, and the potential for strong returns. He emphasizes the importance of following insider reports and leveraging these insights for your own stock research.

Takeaways

• 😀 Amazon has invested over $2.2 billion across 10 companies, targeting a broad range of industries including AI, quantum computing, and electric vehicles.
• 📈 Air Transport Services Group (ATSG) is Amazon's largest investment, holding 20% of the company, and is a strategic tie-up for Amazon's freight operations.
• 💡 Amazon’s stake in Aera Labs is a bet on the growing demand for AI-driven connectivity and networking solutions to support advanced data processing.
• ⚡ IonQ represents Amazon's focus on quantum computing, with a long-term vision of investing in a market worth up to $850 billion by 2040.
• 🚗 Amazon’s $1.9 billion stake in Rivian Automotive reflects its interest in the EV market, especially with Rivian supplying electric trucks to Amazon's fleet.
• 🥚 Vital Farms, with its focus on pasture-raised eggs, is a niche investment aimed at capturing a growing market in sustainable and organic food products.
• 💼 The 13F SEC filings give valuable insight into institutional investments, and Amazon’s purchases can serve as a signal for future stock trends.
• 💰 Amazon’s investments are typically long-term, with the company focusing on growth sectors like AI, quantum computing, and electric vehicles.
• 🚀 The Link2 platform offers early-stage investment opportunities, allowing accredited investors to buy shares in startups like SpaceX and Anthropic before they go public.
• ⚠️ Be cautious when following 13F filings, as there is often a reporting delay of 45 days, and stocks may experience volatility after disclosure.

Q & A

What is the focus of the video script?

The video script focuses on Amazon's investments in various companies, highlighting its largest investments and explaining the rationale behind each purchase. It also explores the significance of these investments in emerging technologies like AI, electric vehicles, and quantum computing.

How much has Amazon invested in total across the companies mentioned?

Amazon has invested over $2.2 billion in shares of 10 companies, with its largest stake being in Air Transport Services Group (ATSG), worth nearly $280 million.

Why is Amazon investing in Air Transport Services Group (ATSG)?

Amazon's investment in ATSG is strategic, providing a major controlling interest in a company that supports Amazon's freight delivery operations. The investment ensures a dependable cash flow and strengthens the partnership between Amazon and ATSG, which leases planes to Amazon.

What is the potential upside of Amazon's investment in ATSG?

The potential upside includes the possibility of Amazon acquiring ATSG in the future, as well as the company's dependable cash flow and its role in supporting Amazon's logistics infrastructure.

What is Link2 and how is it related to Amazon's strategy?

Link2 is an investment platform that gives investors access to high-growth startups, including AI models like Anthropic and companies like SpaceX and Ripple. Amazon's interest in these companies aligns with its broader strategy of investing in innovative technologies before they go public.

What role does Aera Labs play in Amazon's investment strategy?

Aera Labs provides connectivity and networking solutions for AI data centers, which could become a critical bottleneck as AI technologies advance. Amazon's investment in Aera Labs positions it to capitalize on the increasing demand for AI infrastructure.

What is the potential for IonQ in the tech industry?

IonQ is positioning itself as a leader in quantum computing, a field expected to revolutionize industries from AI to cryptography. Amazon's investment in IonQ is based on its potential to lead the quantum computing space, though the technology is still in its early stages.

How does Amazon's investment in Rivian Automotive align with its business operations?

Amazon owns a significant stake in Rivian, an electric vehicle manufacturer, as part of its long-term strategy to electrify its delivery fleet. Rivian has a major contract with Amazon to supply electric vans, which supports Amazon's sustainability goals.

Why did the script highlight the use of SEC Form 13F filings?

Form 13F filings, which institutional investors like Amazon must submit to the SEC, disclose their investments in publicly traded stocks. These filings are used by investors to track stock picks from major companies and potentially invest in these stocks ahead of future price movements or acquisitions.

What is the current outlook for Vital Farms, and why is Amazon investing in it?

Vital Farms, which produces pasture-raised eggs, has shown strong growth in the agricultural sector. Amazon's investment supports its strategy of investing in companies with a unique market position, as Vital Farms capitalizes on the growing demand for organic and sustainable food products.