Investors Favor Amazon Stock Amid Major Purchases
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: Fool
- Significant Capital Inflow: In Q4 2025, Bill Ackman's Pershing Square and John Armitage's Egerton Capital purchased 3.7 million and 1.8 million shares of Amazon, respectively, making Egerton its largest position, indicating strong confidence in Amazon.
- Increased Institutional Investment: Seth Klarman's Baupost Group added over 2.1 million Amazon shares last quarter, representing more than 9% of Baupost's total holdings, reflecting expectations of future growth for Amazon.
- Citadel's Major Investment: Ken Griffin's Citadel fund purchased $2.5 billion worth of Amazon stock in Q4, raising its total position value to approximately $3.2 billion, signaling bullish sentiment among large investors, particularly in the growing cloud computing sector.
- Market Attractiveness Boosted: The decision of these investors to buy into Amazon after nearly a year of underperformance suggests that the current stock price is attractive, allowing retail investors to purchase shares at lower prices than these institutional buyers.
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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: 205.270
Low
175.00
Averages
280.01
High
325.00
Current: 205.270
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.
Amazon's Q4 2025 Earnings Report Triggers Stock Plunge
- Stock Volatility: Following Amazon's Q4 2025 earnings report, the stock plummeted 11%, marking a staggering one-day drop for a $2.2 trillion company, indicating market concerns over its future capital expenditures.
- Massive Investment Plans: Amazon plans to invest $200 billion in 2026 for data centers and AI, a capital-intensive strategy that may strain cash flow in the short term but could enhance its competitive position in the long run.
- Cloud Service Market Position: Amazon Web Services (AWS) holds 28% of the global cloud services market and is the primary source of the company's operating profits; despite facing growth constraints, demand from AI applications is expected to further drive cloud service growth.
- Future Growth Potential: Amazon is developing a custom chip, Inferentia, specifically for AI inference, indicating its potential market leadership in AI compute pricing and capacity, with prospects for higher profitability through AI and automation technologies.
See More
Amazon's $200 Billion Investment in AI and Data Centers
- Surging Capital Expenditure: Amazon plans to invest $200 billion in 2026 for data centers and AI, which led to an 11% drop in stock price in the short term, but this investment could yield recurring revenue growth for cloud services in the long run.
- Cloud Market Share: Amazon Web Services (AWS) holds 28% of the global cloud services market, and the demand for cloud services continues to rise with the growth of AI applications, although current capacity constraints limit AWS's expansion.
- AI Inference Technology: Amazon has designed a custom chip, Inferentia, specifically for AI inference, aiming to enhance its market leadership in AI compute pricing and capacity, which is expected to drive future revenue growth.
- Automation and Robotics: With hundreds of thousands of employees in its fulfillment network, Amazon is well-positioned to benefit from advancements in humanoid robotics and automation, giving it a significant competitive edge in this evolving landscape.
See More
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- Declining Company Performance: As of February 17, 2026, Bath & Body Works shares were priced at $24.67, down 32.3% year-over-year and underperforming the S&P 500 by 38.07 percentage points, highlighting its struggles in a competitive landscape.
- Fund Downsizing: Bridger Management's total assets under management (AUM) shrank by 16% quarter-over-quarter, reflecting a lack of confidence in market recovery, particularly given the poor performance during its holding period of Bath & Body Works.
- Uncertain Market Outlook: Despite a modest rebound in late 2025, Bath & Body Works faces ongoing challenges with stagnant sales and declining appeal among younger consumers, leading analysts to forecast lower sales in 2026, indicating significant long-term hurdles for the company.
See More
Bridger Management Exits BBWI Stake Amid Market Challenges
- Share Sale Details: Bridger Management disclosed to the SEC on February 17, 2026, that it sold 300,619 shares of Bath & Body Works, with an estimated trade value of $7.74 million, reflecting strategic decisions amid market volatility.
- Asset Management Shift: This transaction resulted in a 4.98% change in Bridger's 13F reportable AUM, indicating that the fund no longer holds any shares post-trade, which suggests a lack of confidence in the company's future performance.
- Market Environment Challenges: Bath & Body Works has faced stagnating sales and declining popularity among Gen Z consumers in recent years, and despite a slight rebound in stock price at the end of 2025, Bridger's exit indicates a cautious outlook on future growth.
- Investor Advisory: Following Bridger's exit, analysts advise caution for investors considering Bath & Body Works stock, as the company did not make it onto Motley Fool's list of top 10 stocks, reflecting broader market concerns about its future performance.
See More
Investors Favor Amazon Stock Amid Major Purchases
- Significant Capital Inflow: In Q4 2025, Bill Ackman's Pershing Square and John Armitage's Egerton Capital purchased 3.7 million and 1.8 million shares of Amazon, respectively, making Egerton its largest position, indicating strong confidence in Amazon.
- Increased Institutional Investment: Seth Klarman's Baupost Group added over 2.1 million Amazon shares last quarter, representing more than 9% of Baupost's total holdings, reflecting expectations of future growth for Amazon.
- Citadel's Major Investment: Ken Griffin's Citadel fund purchased $2.5 billion worth of Amazon stock in Q4, raising its total position value to approximately $3.2 billion, signaling bullish sentiment among large investors, particularly in the growing cloud computing sector.
- Market Attractiveness Boosted: The decision of these investors to buy into Amazon after nearly a year of underperformance suggests that the current stock price is attractive, allowing retail investors to purchase shares at lower prices than these institutional buyers.
See More
Investors Favor Amazon Stock Amid Major Purchases
- Significant Capital Inflow: In Q4 2025, Bill Ackman's Pershing Square and John Armitage's Egerton Capital purchased 3.7 million and 1.8 million shares of Amazon, respectively, indicating strong confidence in the company, especially after a year of underperformance.
- Increased Institutional Investment: Seth Klarman's Baupost Group added over 2.1 million shares of Amazon last quarter, making it over 9% of Baupost's total holdings, reflecting institutional investors' optimism about Amazon's future growth.
- Citadel's Major Investment: Ken Griffin's Citadel fund purchased $2.5 billion worth of Amazon stock in Q4 2025, bringing its total position to approximately $3.2 billion, further solidifying Amazon's leadership in the cloud computing and AI markets.
- Positive Market Signal: The buying behavior of these professional investors is seen as a strong endorsement of Amazon stock, especially as current prices are below their purchase costs, providing a potential buying opportunity for retail investors.
See More
Amazon's Q4 2025 Earnings Report Triggers Stock Plunge
- Stock Volatility: Following Amazon's Q4 2025 earnings report, the stock plummeted 11%, marking a staggering one-day drop for a $2.2 trillion company, indicating market concerns over its future capital expenditures.
- Massive Investment Plans: Amazon plans to invest $200 billion in 2026 for data centers and AI, a capital-intensive strategy that may strain cash flow in the short term but could enhance its competitive position in the long run.
- Cloud Service Market Position: Amazon Web Services (AWS) holds 28% of the global cloud services market and is the primary source of the company's operating profits; despite facing growth constraints, demand from AI applications is expected to further drive cloud service growth.
- Future Growth Potential: Amazon is developing a custom chip, Inferentia, specifically for AI inference, indicating its potential market leadership in AI compute pricing and capacity, with prospects for higher profitability through AI and automation technologies.
See More
Amazon's $200 Billion Investment in AI and Data Centers
- Surging Capital Expenditure: Amazon plans to invest $200 billion in 2026 for data centers and AI, which led to an 11% drop in stock price in the short term, but this investment could yield recurring revenue growth for cloud services in the long run.
- Cloud Market Share: Amazon Web Services (AWS) holds 28% of the global cloud services market, and the demand for cloud services continues to rise with the growth of AI applications, although current capacity constraints limit AWS's expansion.
- AI Inference Technology: Amazon has designed a custom chip, Inferentia, specifically for AI inference, aiming to enhance its market leadership in AI compute pricing and capacity, which is expected to drive future revenue growth.
- Automation and Robotics: With hundreds of thousands of employees in its fulfillment network, Amazon is well-positioned to benefit from advancements in humanoid robotics and automation, giving it a significant competitive edge in this evolving landscape.
See More
Bridger Management Sells Entire Stake in Bath & Body Works Amid Struggles
- Share Sale Details: Bridger Management disclosed the sale of 300,619 shares of Bath & Body Works in Q4 2026, with an estimated transaction value of $7.74 million, indicating a strategic exit during a challenging market phase.
- Declining Company Performance: As of February 17, 2026, Bath & Body Works shares were priced at $24.67, down 32.3% year-over-year and underperforming the S&P 500 by 38.07 percentage points, highlighting its struggles in a competitive landscape.
- Fund Downsizing: Bridger Management's total assets under management (AUM) shrank by 16% quarter-over-quarter, reflecting a lack of confidence in market recovery, particularly given the poor performance during its holding period of Bath & Body Works.
- Uncertain Market Outlook: Despite a modest rebound in late 2025, Bath & Body Works faces ongoing challenges with stagnant sales and declining appeal among younger consumers, leading analysts to forecast lower sales in 2026, indicating significant long-term hurdles for the company.
See More
Bridger Management Exits BBWI Stake Amid Market Challenges
- Share Sale Details: Bridger Management disclosed to the SEC on February 17, 2026, that it sold 300,619 shares of Bath & Body Works, with an estimated trade value of $7.74 million, reflecting strategic decisions amid market volatility.
- Asset Management Shift: This transaction resulted in a 4.98% change in Bridger's 13F reportable AUM, indicating that the fund no longer holds any shares post-trade, which suggests a lack of confidence in the company's future performance.
- Market Environment Challenges: Bath & Body Works has faced stagnating sales and declining popularity among Gen Z consumers in recent years, and despite a slight rebound in stock price at the end of 2025, Bridger's exit indicates a cautious outlook on future growth.
- Investor Advisory: Following Bridger's exit, analysts advise caution for investors considering Bath & Body Works stock, as the company did not make it onto Motley Fool's list of top 10 stocks, reflecting broader market concerns about its future performance.
See More
Investors Favor Amazon Stock Amid Major Purchases
- Significant Capital Inflow: In Q4 2025, Bill Ackman's Pershing Square and John Armitage's Egerton Capital purchased 3.7 million and 1.8 million shares of Amazon, respectively, making Egerton its largest position, indicating strong confidence in Amazon.
- Increased Institutional Investment: Seth Klarman's Baupost Group added over 2.1 million Amazon shares last quarter, representing more than 9% of Baupost's total holdings, reflecting expectations of future growth for Amazon.
- Citadel's Major Investment: Ken Griffin's Citadel fund purchased $2.5 billion worth of Amazon stock in Q4, raising its total position value to approximately $3.2 billion, signaling bullish sentiment among large investors, particularly in the growing cloud computing sector.
- Market Attractiveness Boosted: The decision of these investors to buy into Amazon after nearly a year of underperformance suggests that the current stock price is attractive, allowing retail investors to purchase shares at lower prices than these institutional buyers.
See More
Investors Favor Amazon Stock Amid Major Purchases
- Significant Capital Inflow: In Q4 2025, Bill Ackman's Pershing Square and John Armitage's Egerton Capital purchased 3.7 million and 1.8 million shares of Amazon, respectively, indicating strong confidence in the company, especially after a year of underperformance.
- Increased Institutional Investment: Seth Klarman's Baupost Group added over 2.1 million shares of Amazon last quarter, making it over 9% of Baupost's total holdings, reflecting institutional investors' optimism about Amazon's future growth.
- Citadel's Major Investment: Ken Griffin's Citadel fund purchased $2.5 billion worth of Amazon stock in Q4 2025, bringing its total position to approximately $3.2 billion, further solidifying Amazon's leadership in the cloud computing and AI markets.
- Positive Market Signal: The buying behavior of these professional investors is seen as a strong endorsement of Amazon stock, especially as current prices are below their purchase costs, providing a potential buying opportunity for retail investors.
See More
