Ackman's Big Bet on Amazon: A Sustainable Growth Thesis

Pershing Square, led by billionaire investor Bill Ackman, holds nearly 8.6 million shares of Amazon, amounting to over $2 billion and 10.5% of its portfolio.

Ackman believes investors are concerned about the massive amounts of capital being spent on artificial intelligence (AI) infrastructure, particularly at Amazon, which has indicated it'll ramp up annual capital expenditures (capex) to roughly $220 billion this year.

He thinks this spending will be channeled into a sustainable and high-growth activity, supporting Amazon's powerful cloud business, Amazon Web Services (AWS), which has benefited from the broad adoption of AI worldwide.

Ackman wrote that AWS revenue has grown notably, from 20% in both 2024 and 2025 to over 30% so far in 2026, and he believes Amazon can compound total earnings at a pace of at least 20%.