Bill Ackman Sells Hilton Stake, Shifts to AI Giants
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 25 2026
0mins
Source: Fool
- Hilton's Strong Performance: Bill Ackman invested in Hilton in 2018, during which time global hotel rooms increased from 913,000 to 1.3 million, and membership grew from 85 million to 243 million, driving revenue up 35% from $8.9 billion to over $12 billion and operating income up 88%, showcasing the success of its asset-light business model.
- Rising Market Valuation: Ackman initially purchased Hilton shares at a P/E ratio of 23, but the current ratio exceeds 32, indicating a significant increase in market expectations for future earnings, prompting Ackman to sell his stake in search of more attractive investment opportunities.
- New AI Investment Opportunities: Ackman has shifted his focus to Amazon and Meta Platforms, believing these tech giants have long-term growth potential in generative AI, particularly as Amazon's cloud services and Meta's advertising business benefit from advancements in AI technology.
- Capital Expenditure Plans: Despite both Amazon and Meta planning substantial increases in capital expenditures, Ackman believes these investments will yield strong future returns, especially as Amazon's cloud services have achieved triple-digit revenue growth amid a surge in AI spending.
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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: 232.690
Low
175.00
Averages
280.01
High
325.00
Current: 232.690
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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