Bill Ackman, the billionaire hedge fund manager and CEO of Pershing Square Capital Management, has recently added Amazon to his portfolio. This move aligns him with renowned investors Warren Buffett and Cathie Wood, who already hold positions in the company. Ackman is known for maintaining a highly concentrated portfolio, typically consisting of only about 10 stocks at any given time.
His decision to invest in Amazon complements his existing exposure to Alphabet, another tech giant. Ackman admires Amazon for its diversified ecosystem, which spans e-commerce, cloud computing, advertising, cybersecurity, and more. The company’s appeal has become too significant to ignore, especially during its recent dip in April.
Amazon’s strategic investments in AI are already delivering results.
Ackman invests in Amazon
The company has partnered with Anthropic, an open-source AI rival to OpenAI, to train its generative AI model on Amazon Web Services (AWS).
This collaboration has led to a doubling of operating income from the cloud business, showcasing the profitability of Amazon’s AI-driven growth. Ackman’s position in Amazon was not included in Pershing Square’s first-quarter filings, indicating a recent acquisition among the 70 analysts covering Amazon, 66 rate it as either a “buy” or a “strong buy,” with an average price target of $239.
Amazon’s journey this year has been a rollercoaster, with shares bottoming out at approximately $167 in April. This dip likely presented the buying opportunity that Ackman seized. With its diverse business operations and meaningful investments in AI, Amazon seems poised for continued growth.
Investors might consider Amazon a solid choice for their portfolios, given the collective endorsement from Ackman, Buffett, and Wood.
