Ackman Sees Growth Potential in Amazon's AI-Fueled Momentum
Bill Ackman's Pershing Square Capital Management owns Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (META) among its eight to twelve holdings. The fund focuses on large-cap consumer-facing companies, with a recent emphasis on artificial intelligence (AI). Ackman acquired the Microsoft position in early 2026 after closing his Alphabet (GOOG) stake in the first quarter of that year.
The three stocks have different uses for AI, but all are heavily investing. Amazon and Microsoft compete in cloud services, while Meta focuses on social media and developer tools. In their latest quarters, AWS reported a 37% year-over-year sales growth, surpassing its previous rate when it was half the current size.
Ackman's Pershing Square believes that Amazon's retail business can nearly double profitability through higher-margin advertising revenue, network density, and automation initiatives. The company is investing heavily in AI, with a $220 billion capital expenditure target for 2026, up from its initial goal of $200 billion.
Amazon's CEO Andy Jassy emphasized the potential for future growth, stating that Amazon will not have enough capacity to meet demand in 2026 and likely again in 2027. The retail business accounts for most sales, although AWS contributed significantly to operating income in the second quarter.