Billionaires Bill Ackman and Chase Coleman Are Buying Amazon Stock Hand Over Fist. Should You?

During Q2 2025, prominent hedge fund managers Bill Ackman (Pershing Square) and Chase Coleman (Tiger Global) significantly invested in Amazon (AMZN), acquiring shares at a steep discount following a >30% price dip. Ackman initiated a new $1.28 billion position of 5.82 million shares, now 9.3% of his portfolio, while Coleman increased his stake by over 62% with 4.1 million additional shares. Their conviction is rooted in Amazon Web Services' (AWS) strong growth outlook, CEO Andy Jassy's focus on efficiency driving profitability (Q2 earnings up 35% YoY), and the company's overall market dominance, signaling a belief in Amazon's compelling long-term value proposition.

Analysis

Significant institutional capital flowed into Amazon (AMZN) during Q2 2025, with Bill Ackman's Pershing Square initiating a new $1.28 billion position and Chase Coleman's Tiger Global increasing its stake by over 62%. These large-scale purchases were strategically executed following a steep stock price decline of over 30%, signaling a strong conviction in the company's value proposition at that discounted level. The shared investment thesis, as articulated by Pershing Square, is anchored in the long-term growth trajectory of Amazon Web Services (AWS) and confidence in CEO Andy Jassy's successful efficiency initiatives, which contributed to a notable 35% year-over-year earnings jump in Q2. While the entry point for these hedge funds was more attractive, the underlying drivers, including AWS's dominance, emerging AI tailwinds, and potential from new ventures like Project Kuiper and Zoox, remain central to the ongoing bullish case for the stock.

Key Decisions for Investors

• Given the strong institutional conviction and fundamental strengths like 35% YoY earnings growth, investors may consider Amazon a core long-term holding, aligning with the thesis that its AWS and e-commerce dominance provide a durable competitive advantage.
• While the stock has rebounded significantly since the Q2 purchases, investors should monitor key performance indicators such as AWS revenue growth and corporate profit margins to validate that CEO Andy Jassy's efficiency improvements continue to drive value.
• Potential investors should be mindful that the deep discount opportunity has passed and should assess the current valuation carefully, potentially looking for market pullbacks to establish or add to positions rather than simply replicating the Q2 trade.