Is it time to buy Amazon’s stock?

Billionaire investor Bill Ackman’s hedge fund, Pershing Square Capital Management, has reshaped its portfolio with a significant investment in Amazon. They decided on this move because they believe President Donald Trump’s tariff policies won’t heavily impact Amazon, which operates in the trade sector.

Amazon is one of the world’s most valuable companies, valued at over $2 trillion. Its stock price dropped in April due to tariff news, providing Pershing Square a major buying opportunity. They believe Amazon Web Services (AWS), its cloud service branch, can compensate for revenue losses in other sectors, and that tariffs won’t seriously affect its retail business revenue. They also expressed confidence in Amazon CEO Andy Jassy’s leadership. To invest in Amazon, Pershing Square sold its shares in Canadian Pacific, a Canadian railroad company.

Ackman said he regrets having to reshuffle the fund but stressed that reallocating the portfolio was necessary to invest in Amazon. He also emphasized his confidence in Canadian Pacific’s long-term prospects. Additionally, Pershing Square has investments in car rental company Hertz and transportation company Uber. It reduced stakes in companies like Chipotle, Hilton, and Universal Music Group, and purchased Nike shares via call options.

These changes highlight Pershing Square’s strategic shift toward technology and transportation sectors, demonstrating an adaptive investment approach to current market conditions.

Source: Reuters.com