The Motley Fool·2026-03-21 08:48Amazon - Bill Ackman's investment thesis for Amazon highlights its strong presence in e-commerce and cloud services, with Amazon being the largest online marketplace in North America and Western Europe, and AWS being the largest public cloud provider [2] - Amazon has developed numerous generative AI applications to enhance retail operations, which Ackman believes could lead to significant margin expansion, as evidenced by a 1.5 percentage point increase in operating margin in Q4 [3] - AWS has introduced various AI products and services, contributing to a 24% increase in cloud revenue in Q4, marking the fastest growth in 13 quarters [4] - Despite shares being 16% below their peak due to concerns over AI investment, analysts believe Amazon will benefit significantly from physical AI, justifying the spending [5] - Wall Street projects Amazon's earnings to grow at 19% annually over the next three years, with a median target price of $285 per share, indicating a 37% upside from the current price of $208 [6] Meta Platforms - Ackman's investment thesis for Meta Platforms is based on its position as the second-largest adtech company globally, with platforms like Facebook and Instagram providing valuable consumer insights for targeted advertising [7] - Meta is viewed as a leader in AI innovation, having developed custom AI chips and models that enhance user experience and drive better advertising outcomes [8] - In Q4, optimizations led to a 7% increase in views of organic posts on Facebook, with a 6% year-over-year rise in average ad prices, driven by improved ad performance [9] - Meta is projected to grow its earnings at 22% annually over the next three years, with a median target price of $855 per share, suggesting a 41% upside from the current price of $606 [10]