Ackman's Pershing Square Sees Rapid Growth Potential in Amazon

Billionaire investor Bill Ackman's hedge fund, Pershing Square Capital Management, has a portfolio of eight to twelve holdings at any given time. Its current holdings include Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (META). These are large-cap consumer-facing companies that focus on artificial intelligence (AI) stocks.

Ackman's company previously held Alphabet but sold its shares in the first quarter of 2026 to purchase Microsoft, which it believed was a better investment opportunity.

Out of these three holdings, Amazon is considered the best buy right now due to its rapid growth and high profitability. The company's retail business can nearly double its profitability through higher-margin advertising revenue, network density, and automation initiatives.

AWS, Amazon's cloud business, reported a 37% year-over-year increase in sales in its most recent quarter, with a $4.6 billion addition in the first quarter alone. This growth is similar to what AWS experienced when it was less than half its current size.

Ackman believes that Amazon's retail business can nearly double profitability through higher-margin advertising revenue, network density, and automation initiatives. He also notes that AWS accounts for less than a quarter of the company's sales, although it represented 60% of operating income in the second quarter.