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Billionaire Bill Ackman’s Pershing Square fund purchased shares of Amazon (NASDAQ: AMZN) during the stock market sell-off in mid-April, reportedly at around $167 per share. Since then, Amazon’s stock has surged approximately 30%. Ackman’s investment strategy focuses on long-term value rather than short-term gains.
In Q1, Amazon Web Services (AWS) generated 63% of Amazon’s total operating profits, even though it accounted for only 19% of sales. AWS revenue grew 17% year-over-year, significantly outpacing Amazon’s overall commerce growth. Ackman believes that the potential impact of tariffs on Amazon’s stock is overstated, as the company’s profitability relies heavily on its cloud computing segment rather than its commerce division.
Despite Amazon’s stock recovering to within 10% of its all-time high, analysts are divided on its current value, with the Motley Fool’s advisor team suggesting alternative stocks may yield better returns.
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