Updated
Updated · Yahoo Finance · Aug 17
Pershing Square Keeps Amazon at 10% Stake, Backs 20%+ Earnings Growth
Updated
Updated · Yahoo Finance · Aug 17

Pershing Square Keeps Amazon at 10% Stake, Backs 20%+ Earnings Growth

3 articles · Updated · Yahoo Finance · Aug 17

Summary

  • Amazon still made up about 10% of Pershing Square’s reported assets after the fund trimmed roughly a quarter of its position in Q2, leaving it as the firm’s fourth-largest holding.
  • Pershing Square’s August investor update said Amazon can grow earnings by more than 20% annually, driven by AI demand in AWS and continued e-commerce expansion.
  • AWS growth accelerated to 37% in the latest quarter from 17% in Q2 2025, while Amazon’s total revenue rose 20% and operating income jumped 43% to $27 billion.
  • Ackman had begun selling Alphabet in late 2025 and said in May he used some proceeds to fund a new Microsoft position, while still arguing Amazon offers a long growth runway.
  • Amazon’s heavy data-center spending pushed Q2 free cash flow to negative $8.8 billion, but Pershing Square says AI inference demand should absorb new capacity and generate attractive returns over time.

Insights

Why did Bill Ackman really trim his massive Amazon stake just as its AI revenue hit a four-year high?
Could Ackman's billion-dollar pivot from Alphabet to Microsoft reveal a surprising new winner in the ongoing AI cloud wars?
What hidden signals drove Pershing Square to swap tech giants for traditional finance stocks like Visa and Mastercard?