Billionaire investor Bill Ackman, CEO of Pershing Square Capital Management, has recently expanded his hedge fund’s portfolio by adding a stake in Amazon (NASDAQ: AMZN), complementing its existing position in Alphabet. This move places Amazon among the “Magnificent Seven,” a group of leading tech stocks, and highlights its appeal to prominent investors like Warren Buffett, who also holds Amazon in his Berkshire Hathaway portfolio.
Amazon has attracted investments due to its diverse ecosystem, which spans e-commerce, cloud computing, and AI-driven projects. Ackman capitalized on a recent dip in Amazon’s stock valuation, purchasing shares during a downturn in April. The company has also invested $8 billion into AI start-up Anthropic, enhancing its capabilities in cloud computing and automation.
Despite being viewed as a significant opportunity in the AI space, Amazon’s current forward earnings multiples indicate it may not be a bargain. However, its robust growth prospects position it potentially as a safer investment compared to other volatile stocks in the AI market.
