Billionaire Bill Ackman Just Bought Amazon Stock -- Should You Jump In Too?

Wall Street's latest power move just dropped—and it's got everyone talking.

Billionaire investor Bill Ackman just placed a massive bet on Amazon, sending shockwaves through traditional finance circles. The hedge fund titan's Pershing Square Capital Management snapped up shares of the e-commerce behemoth, signaling confidence in its long-term growth trajectory.

Why Amazon Now?

Amazon continues dominating cloud computing with AWS while expanding its retail empire globally. The company's relentless innovation—from AI integration to logistics optimization—keeps competitors scrambling to catch up.

Retail Investor Dilemma

Following billionaires into trades rarely works out for the little guy—by the time you hear about it, the smart money might already be planning its exit. But Amazon's fundamentals remain robust despite macroeconomic headwinds.

Tech vs Traditional Finance

While old-school investors play musical chairs with stocks, crypto natives understand true disruption happens outside traditional markets. Amazon's move might be solid—but it's hardly revolutionary compared to blockchain's potential to reshape global finance.

Final Verdict: Do your own research—blindly following billionaires is how you end up holding the bag while they take private jets to their next investment conference.

Image source: Getty Images.

The nature of the trade

Through his Pershing Square fund, Ackman purchased 5.82 million Amazon shares, worth roughly $1.35 billion. That made it one of his top four holdings, about 9% of his U.S. equity portfolio.

It's not known when Ackman purchased the stock, but it likely occurred in April, when markets sold off after tariff announcements. Amazon's shares briefly dipped to $161 -- well below recent levels around $230 -- suggesting that Ackman stepped in when sentiment was weak and prices were favorable.

What might have caught Ackman's attention?

Observers cannot know exactly what's in Ackman's mind. Still, judging from his history, he likely saw Amazon as a chance to own a proven franchise at an attractive valuation.

Let's start with the obvious. Amazon is the de facto leader in U.S. online retail. Its massive logistics network, vast third-party marketplace, and more than 200 million Prime members worldwide create a flywheel that competitors cannot replicate. This entrenched position provides consistent revenue growth, even if the pace has slowed as the business has scaled.

While e-commerce growth has moderated in recent years, Amazon Web Services(AWS), the cloud computing division, remains a solid growth engine. This segment grew revenue by 19% in 2024 to $108 billion and generated $39.8 billion in operating profit -- more than half of Amazon's group-wide operating profit of $68.6 billion. Ackman likely views AWS as the steady cash generator that funds innovation and cushions retail cyclicality.

Talking about innovation, one of the most significant tailwinds that's driving Amazon is artificial intelligence (AI), which runs throughout the organization. In AWS, Amazon trains and deploys large models for enterprise clients. In retail, AI optimizes logistics, fulfillment, and personalized shopping. With a solid foundation, Amazon is well positioned to invest heavily in AI to evolve its business model while growing new products and services.

And let's not forget the quietly growing advertising business, the third largest segment after e-commerce and cloud computing. This business grew even faster than AWS -- 22% in Q2 2025 -- with an annualized revenue rate of close to $50 billion. By monetizing its Core assets, such as retail search and Prime Video, Amazon converts its massive user base into high-margin advertising revenue.

What investors should do (if they are interested in Amazon's stock)

It makes sense to note the trades of great investors, but not to copy them mindlessly. Instead, investors should use them as prompts to reassess. Here are four practical steps:

Do you believe Amazon's moat, AWS growth, and advertising optionality still offer compounding value? If yes, you share the same thread, even if you don't copy the trade.

Ackman entered at a favorable time in April. If Amazon trades above your fair value band currently, wait for a better price.

Ackman allocated nearly 10% of his equity bucket. For you, decide what conviction warrants -- and don't breach your own thresholds.

Watch AWS margins and growth, advertising revenue trends, Prime engagement, and regulatory signals. Let fundamentals, not momentum, drive conviction.

What does it all mean for investors?

Bill Ackman likely bought Amazon not on hype, but on its resilient e-commerce base, growth in cloud computing and AI, and the expanding advertising business.

The real takeaway for investors? Don't copy trades. Instead, learn to recognize when the market underrates enduring businesses and be ready to act with clarity and a plan when conviction is high.