5 Best Stocks to Buy Before SpaceX IPO

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1. Amazon.com Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 381

On April 19, Barclays analysts backed Amazon to outperform other mega-cap tech stocks. In a note to analysts, the investment bank showed confidence in Amazon Web Services’ (AWS) ability to lead the company’s growth on the back of artificial intelligence tailwinds. This renewed optimism comes as AWS reported a $15 billion annualized revenue run rate based on its AI services.

The company’s grocery segment now has $150 billion in annual US gross sales, which makes it the second largest after Walmart. Despite Walmart’s dominance in physical stores, it is struggling to keep Amazon at bay. On April 19, the Financial Times reported that the company was experimenting with new delivery strategies to implement same-day delivery and compete with Amazon.

There is additional tailwind from the company’s microchip segment, which is now up to $20 billion in annualized revenue run rate, doubling in just three months. On top of all this, the SpaceX IPO is likely going to bring Amazon’s space ventures to the forefront, making it an attractive second scaled competitor. Jeff Bezos’ Project Kuiper is still in an early phase, expecting mass deployment of satellites this year with commercial services starting later this year or next year.

Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.

While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Best American Stocks to Buy and Hold in 2026 and 12 Best Mid Cap AI Stocks to Buy According to Hedge Funds.

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