Berkshire Hathaway's Big Mistake: Selling Off Amazon Stake
Greg Abel has made his mark on Berkshire Hathaway since becoming its CEO. In addition to reshuffling the stock portfolio and acquiring new companies, he sold 2.3 million Amazon shares in his first quarter as head of the company. This decision might prove a huge mistake for Berkshire Hathaway, considering Amazon's rapid growth.
AWS, Amazon's cloud business, has been driven by interest in AI and its engagement with AI development platforms. It offers a vast array of tools and services through Bedrock and owns an AI chip business with a $25 billion run rate. AWS alone would make the 24th-largest business by sales in the U.S. if it were a standalone company, and Jassy expects this in 2027.
Jassy believes that Amazon still doesn't have enough capacity to meet demand even at its current rate of build-out, which will require $220 billion in 2026. The market has picked up on his future predictions, which are confident and compelling. Many Wall Street analysts raised their 12- to 18-month price target on Amazon stock after the report.