From Nasdaq: 2025-06-13 06:15:00

Billionaire Bill Ackman’s Pershing Square fund recently purchased shares of Amazon at an “extremely attractive” price, likely near the stock’s bottom in April. Although Amazon’s stock has risen 30%, Ackman believes earnings will continue to grow despite potential tariff impacts due to the strength of Amazon Web Services (AWS).

While Pershing Square is already up 30% on their investment, they are focused on long-term growth from AWS rather than short-term gains. AWS, with a 17% revenue growth in Q1, contributes significantly to Amazon’s profits, making it less susceptible to tariff impacts on commerce. This focus on AWS profitability is why Ackman believes tariffs won’t hurt Amazon as much as expected.

Investors may find Amazon’s stock appealing due to the strong growth and profitability of AWS, which is expected to drive margin expansion and EPS growth faster than the market average. While Ackman’s entry point may not be accessible, Amazon’s long-term investment potential remains compelling, especially with AWS’s performance.

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Read more at Nasdaq: Billionaire Bill Ackman Just Scooped Up Shares of This Unstoppable Stock