Ackman Bets Big on Amazon's Cloud Growth
Pershing Square's Bill Ackman is known for his selectivity in stocks, and Amazon (NASDAQ: AMZN) is one of them. With nearly $2 billion invested in Amazon, it accounts for 10.5% of Pershing Square's $19.5 billion portfolio.
Ackman believes investors are misreading the company's ramp-up in capital expenditures, which he sees as a sustainable investment in its high-growth cloud business, Amazon Web Services (AWS).
Amazon's AI infrastructure spending is expected to reach $220 billion this year, but Ackman thinks it's being channeled into a durable growth cycle. He points out that AWS has seen revenue grow from 20% in both 2024 and 2025 to over 30% so far in 2026.
Ackman also highlights the strength of Amazon's retail operations, which saw 15% unit volume growth in the first quarter, its highest since 2021. He believes Amazon can compound total earnings at a pace of at least 20%, citing the impact of AI on growth.