Billionaire Bill Ackman Just Bought Shares of This Company That's Already Scored a $123 Billion AI Win

Bill Ackman's Pershing Square Capital Management recently initiated a new position in Amazon (AMZN), making it approximately 9% of his portfolio and a top-five holding, according to his latest 13F filing. This strategic investment reflects a bet on Amazon's e-commerce leadership and its significant leverage in artificial intelligence, particularly through Amazon Web Services (AWS), which already boasts a $123 billion annual revenue run rate from AI-related offerings. Concurrently, Ackman increased his Alphabet Class A shares and exited Canadian Pacific Kansas City Limited, signaling a strategic focus on major tech players with strong AI growth potential and robust cost structures.

Analysis

According to its latest 13F filing, Bill Ackman's Pershing Square Capital Management has initiated a significant new position in Amazon (AMZN), acquiring 5,823,316 shares. This investment now represents approximately 9% of the firm's reported portfolio, establishing Amazon as a top-five holding and signaling high conviction. The strategic rationale appears to be a dual-pronged bet on Amazon's established leadership in e-commerce and its substantial, and already profitable, position in artificial intelligence. The article highlights that Amazon is actively monetizing AI, particularly through its Amazon Web Services (AWS) division, which has reportedly achieved a $123 billion annual revenue run rate from its AI-related products and services. This is complemented by fundamental improvements, including a recent cost structure overhaul that enhanced profitability. The move was part of a broader Q2 portfolio adjustment that also saw Pershing Square increase its Alphabet (GOOGL) holdings by 20% while fully divesting from Canadian Pacific Kansas City (CP), indicating a strategic concentration in mega-cap technology companies with strong AI narratives. The article also notes that Amazon's stock trades at 34 times forward earnings, a reduction from over 42 times late last year.

Key Decisions for Investors

• Investors should view Ackman's substantial new position as a strong institutional endorsement of Amazon's long-term value, particularly its ability to monetize artificial intelligence through its market-leading AWS platform.
• The key performance indicator to monitor is the revenue growth and margin contribution from AWS, as its cited $123 billion AI-related annual run rate is the central pillar supporting this bullish thesis.
• While the article presents the current forward P/E of 34x as a relative discount, investors should weigh this valuation against their own growth expectations and note Ackman's concurrent increase in Alphabet, which suggests a broader strategy of favoring established tech giants in the current AI landscape.