Ackman Boosts Amazon Stake by $865 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: CNBC
- Amazon Stake Increase: Ackman's Pershing Square expanded its Amazon stake by over $865 million in Q4 2025, a 65% increase, bringing the total value above $2.2 billion, reflecting confidence in Amazon's growth potential.
- Stock Price Volatility: Despite a 5% rise in Amazon's stock in Q4 2025, it has since fallen over 12% in Q1 2026, indicating market concerns about its future performance, resulting in a market cap loss exceeding $450 billion.
- Analyst Ratings Optimistic: The majority of analysts polled by LSEG maintain buy ratings on Amazon, with an average price target suggesting a potential rebound of over 38% in the next year, providing investors with a promising outlook.
- Portfolio Adjustments: In addition to increasing his Amazon stake, Ackman announced a stake in Meta valued at over $1.7 billion, while cutting his Alphabet holding by more than 38% and completely exiting his investment in Chipotle, demonstrating flexibility in his investment strategy.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 198.790
Low
175.00
Averages
280.01
High
325.00
Current: 198.790
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant AI Budget Increase: Amazon plans to raise its capital expenditures to $200 billion for 2023, significantly exceeding Wall Street's expectation of $150 billion, which will decelerate free cash flow and impact short-term stock performance.
- Strong AWS Growth: Amazon Web Services (AWS) generated $35.6 billion in revenue during Q4, reflecting a 24% year-over-year growth, with a staggering $244 billion backlog indicating robust market demand and substantial future growth potential.
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- Tech Stock Reductions: Coatue reduced its holdings in Alphabet Inc. Class A shares from approximately 7.2 million shares to roughly 6.8 million shares, a decrease of about 400,000 shares, showcasing a cautious stance towards traditional tech stocks that may impact long-term growth expectations.
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- Reductions and Increases: The fund reduced its holdings in Analog Devices (ADI) by 90,000 shares and Broadcom (AVGO) by 65,000 shares while increasing its stake in Meta Platforms (META) to 90,000 shares, reflecting a reassessment and strategic adjustment towards tech stocks.
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See More
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- Significant Revenue Growth: The company achieved a 10.4% year-over-year revenue increase to $802.3 million in Q4, exceeding analyst estimates of $791.3 million, reflecting robust demand for advertising and digital content.
- Subscriber Growth: By the end of Q4 2025, New York Times added approximately 450,000 net digital-only subscribers, bringing the total to 12.78 million, showcasing success in attracting new users and enhancing future revenue sustainability.
- Increased Shareholder Confidence: Berkshire Hathaway acquired 5.07 million shares of New York Times in Q4, leading to a 3.3% rise in stock price during after-hours trading, demonstrating market confidence in the company's growth potential.
See More
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- Surge in Trading Volume: The trading volume reached 67.9 million shares, approximately 43% above the three-month average, indicating heightened investor interest and confidence in Amazon's future developments.
- Significant AWS Contribution: Amazon Web Services (AWS) saw a 24% revenue increase in Q4, contributing $128 billion to Amazon's total $717 billion revenue last year, underscoring its strong position in the cloud services market.
- Investment Outlook Analysis: Despite the massive capital expenditure plan, investors are weighing Amazon's growth potential against AWS's profitability, reflecting trust in the company's long-term strategic direction.
See More
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- Market Volatility: The S&P 500 rose 0.10% to 6,843.22, reflecting ongoing AI-related concerns that pressured growth stocks, indicating investor uncertainty about future market conditions.
- Tech Stock Performance: Amazon ended its historic slide with a 1.19% increase, while Apple and GE Aerospace rose 3.12% and 3.61%, respectively, providing support to the Dow, highlighting investor preference for value stocks amid volatility.
- Consumer Goods Pressure: Consumer staples and packaged food stocks faced challenges as investors expressed concerns that a softening U.S. consumer could impact margins and earnings in defensive sectors, signaling caution in the market.
- Investment Strategy Shift: JPMorgan noted that select quality stocks appear mispriced post-AI rerating, suggesting investors are increasingly focusing on moats and regulatory factors while positioning for upcoming inflation and GDP releases.
See More
