After Amazon's one-third plunge, Ackman's Pershing Square accurately bottom-fished
Paine Schwartz Partners stated that Amazon's previous sharp decline presents a unique favorable opportunity, believing that Amazon can overcome the slowdown in its cloud business and is smoothly achieving over 20% growth in earnings per share
After Amazon's stock price was nearly halved, hedge fund mogul Bill Ackman's Pershing Square Capital Management seized the opportunity to make a significant entry.
Pershing Square Capital Management has established a new position in Amazon, stating that it has "excellent franchise operations" and noting that it acquired shares at a "very attractive" price.
The company's Chief Investment Officer Ryan Israel stated during a conference call with analysts on Thursday that due to concerns over the AI boom and tariffs, Amazon's stock price plummeted 31% as of April 21, after which the company bottom-fished the stock. Overnight, Amazon closed at $203.10, rebounding about 20% from its April low.
Israel stated:
This is a unique favorable opportunity, as we believe Amazon can overcome any slowdown in its cloud business, and Amazon is smoothly continuing to achieve over 20% earnings per share growth.
It is worth mentioning that during Wednesday's shareholder meeting, Amazon CEO Andy Jassy stated that the online retailer has not seen any meaningful reduction in consumer spending, nor has it experienced price increases due to tariffs introduced by Trump this year.
Amazon executives indicated earlier this month that the company is preparing for a potentially more challenging business environment due to escalating tariffs. Investors are closely monitoring reports from U.S. retailers for signs of how shoppers and brands are responding to tariffs
