Bill Ackman's Pershing Square bought Amazon stake at ‘extremely attractive' price

Core Insights - Pershing Square Capital Management, led by billionaire Bill Ackman, has acquired a stake in Amazon following a significant drop in its stock price, which fell over 30% from its peak of $242.06 in February due to concerns about competition in AI and potential impacts from tariffs [1][3] Company Performance - Amazon's stock price decline was attributed to fears that US tech companies are lagging in the AI sector after China's introduction of a low-cost language model, alongside worries about tariffs affecting supply chains [1] - Despite the challenges, Amazon is projected to maintain over 20% earnings per share growth, as stated by Pershing's Chief Investment Officer Ryan Israel [2][3] Financial Outlook - Amazon reported first-quarter cloud revenue growth but forecasted operating income below market estimates, indicating potential challenges ahead [4] - CEO Andy Jassy reassured shareholders that Amazon has not yet experienced a decline in consumer spending or price increases due to tariffs, although other retailers have adjusted their forecasts downward due to tariff-related pressures [4][5] Market Reactions - Following the announcement of Pershing's investment, Amazon shares rose over 2%, closing at $203.05 [3] - The broader retail environment is facing difficulties, with companies like Target reducing their annual forecasts amid declining consumer spending and tariff impacts [5]