Pershing Square Loads Up on Amazon After Ditching Alphabet

Pershing Square Capital Management, led by Bill Ackman, has significantly increased its stake in Amazon (AMZN) after selling its position in Alphabet (GOOG)(GOOGL).

The investment firm trimmed its Amazon position in the second quarter but still holds it as its fourth-largest holding at around 10% of its reported assets.

Ackman's thesis for investing in Amazon centers on the company's growth engines: Amazon Web Services (AWS) and e-commerce. He expects rising demand for artificial intelligence tools on AWS to potentially reaccelerate growth, which has indeed happened with AWS reporting 37% year-over-year revenue growth in Q2 2025.

Ackman believes Amazon will continue to grow its earnings at over 20% annually, driven by opportunities in AI and e-commerce. He also expects new data center capacity to be absorbed by AI inference workloads and earn attractive returns over time.