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Okay, welcome to Wall Street X. My name is Hugh. I have a master's degree in finance and we are covering Cathie Wood just made a massive bet on these two stocks. A reminder that most active funds do not beat the S&P 500 long term to always do your own research. But the first stock that she bought today was $92 million worth of X Energy shares or XE stock.
It IPO'd today and it's currently up 27% on the day. Very volatile day of trading. Everybody's talking about this one. Um and because it's an IPO with limited historical data, fundamental analysis is going to be quite difficult for this one. But there are some things we can look at. Firstly, TTM revenue of 109 million is pretty good.
But that gives XE a revenue per share of 41 cents and at its current price of 2920, that gives this a price to sales of 70. So clearly, investors are expecting big things out of X Energy with a price to sales of 70. That's high for a price to earnings, let alone a price to sales. Uh and this sort of valuation comes with high earnings expectations.
And by our calculations, X Energy's going to need to grow its revenue by at least 30% over the next year to even be in line with some of these expectations. You know, 30% increase to the revenue over the next four quarters gets their PSG ratio close to like a 2.4, which is like still super high, but just at least somewhat reasonable.
So that's kind of what we're aiming for here is a 30% increase to the revenue over the next 12 months. 82% of the revenue is from the government right now, anyways. Um so we're going to see how that turns out. But regardless, the global nuclear power market is expected to grow at a compound annual growth rate, meaning a year-over-year growth compound rate of 5.86% out to 2035 with a $76 billion market size predicted by them.
The market size in 2025, so last year was 37 billion. And X Energy currently has a $7.7 billion market cap at its 2920 price. That means investors are expecting X Energy to eventually command a 21% market share or thereabouts given today's numbers and valuation. And while we do think the global nuclear market will be able to outpace or at least match a lot of these estimates that we're seeing at 5.8 cager, we think the likelihood that XE X Energy's going to be able to earn a 20% market share or 21% market share over the next 10 years is probably more less likely than it is likely.
Um so we've put we've put this one as a high risk, high reward stock because that's what it is. A very exciting, very volatile stock. This is perfect for investors that want exposure to that nuclear market that think it's going to be the next hype wave. It's going to be the next craze and it very well could be.
Um but at a 5.8% cager estimated, it's got a long ways to go for that. Um but yeah, perfect for investors that want some excitement in their portfolios, that want to put some money in just see what happens. We put XE stock as a hold with a 3075 one-year price target, which equates to an upside of just over 5%.
So just under the nuclear market. Although it could and probably should and hopefully it will be able to outpace the global nuclear market compound annual growth rate. But like I said, this one's an IPO. There's no historical data. Very limited data on this one. That's what we got for you on XE. But the number two stock that Cathie Wood bought is Amazon or AMZN.
This one has been very much overshadowed thanks to X Energy. But Cathie Wood bought $71 million worth of Amazon shares today, April 24th, 2026. It's up 16% year-to-date and we have continued to rate Amazon stock very highly. And we maintain our strong buy rating with a 20% one-year upside. Amazon currently has a PEG ratio of 1.3, which is quite a bit lower than the 10-year historical average of around 2.48, which means that it's undervalued relative to its past performance when you take valuation and growth into account.
Amazon's beat their last three earnings calls, which is fantastic. Long history of being able to post strong earnings beats. Low risk thanks to their diverse revenue sources. They make up most of the revenue from five sources. Online stores, third-party, AWS, advertising, subscriptions and the average analyst is a strong buy with a 13% upside.
So we're seeing a lot of analysts agree with us on this one. Amazon stock is still a buy even after the recent tech sell-off and even more so because of that sell-off. But those are the two stocks that Cathie Wood has recently bought. Please like the video if you enjoyed it. Thank you so much for watching and I'll see you next time.
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