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

Core Viewpoint - The article discusses the significant investments made by billionaire hedge fund managers Bill Ackman and Chase Coleman in Amazon stock during Q2 2025, highlighting their differing investment strategies yet shared confidence in Amazon's growth potential. Group 1: Investment Activity - Ackman's Pershing Square Capital Management purchased approximately 5.82 million shares of Amazon, valued at $1.28 billion, making up about 9.3% of his portfolio by the end of Q2 2025 [3][6] - Coleman's Tiger Global Management increased its stake in Amazon by over 62%, acquiring an additional 4.1 million shares, bringing its total to nearly 10.7 million shares, making Amazon the fourth-largest holding in the portfolio [4][8] Group 2: Reasons for Investment - Ackman and his team viewed the 30% drop in Amazon's stock price earlier in the year as a buying opportunity, believing that the long-term growth prospects for Amazon, particularly in Web Services (AWS), remain strong [6][10] - Both hedge fund managers appreciate Amazon CEO Andy Jassy's focus on improving efficiency, which is expected to enhance profit margins and revenue growth [7][11] - The rapid adoption of artificial intelligence (AI) is seen as a significant advantage for Amazon, contributing to its dominance in e-commerce and cloud services [8][10] Group 3: Future Growth Potential - Amazon's long-term growth opportunities in cloud computing are promising, as a significant portion of global IT spending is still on-premises, indicating a shift towards cloud solutions in the next 10 to 15 years [10][11] - The company is also exploring new markets, such as satellite internet services through Project Kuiper and potential advancements in the robotaxi market via its Zoox unit [11]