Betting on AI! Ackman bought $1.3 billion worth of Amazon and increased his stake in Google

Billionaire and hedge fund mogul Bill Ackman established a new position in Amazon worth nearly $1.3 billion in the second quarter, significantly increasing his stake in Google's parent company Alphabet, highlighting his optimism about investment opportunities in the AI sector.

On August 14th, regulatory filings submitted to the U.S. SEC showed that Bill Ackman's Pershing Square Capital Management held over 5.8 million shares of Amazon stock at the end of the second quarter, valued at approximately $1.28 billion, accounting for 9.31% of its portfolio. This marks Pershing Square's first investment in Amazon, making it their fourth-largest holding.

Amazon's stock price has rebounded 5.3% this year, having previously plummeted over 30% due to market concerns about the generative AI boom and U.S. tariff policies. Ackman's timing coincided with the stock price being at a low, reflecting his consistent style of contrarian investing.

At the same time, Ackman also significantly increased his holdings in Google's parent company Alphabet, adding 925,000 shares, a 20.84% increase, bringing the total value of his holdings to $945 million.

Analysts pointed out that this series of actions indicates that this investor, known for his aggressive investment strategies, is ramping up his allocation to tech giants.

Betting on AI: New $1.3 Billion Amazon Position and Increased Stake in Google's Parent Company

Pershing Square first disclosed its investment in Amazon during an analyst conference call in May this year. At that time, Amazon's stock price had sharply declined due to market concerns about the prospects of generative AI development and the so-called "reciprocal tariff" policy announced by Trump on April 2nd.

According to regulatory filings, as of the end of June, Pershing Square held 5.823316 million shares of Amazon stock, with a total value of approximately $1.28 billion, accounting for 9.31% of its portfolio.

This made Amazon leap to become the fourth-largest holding of the fund, only behind Uber Technologies, Brookfield Corp, and Restaurant Brands International.

Amazon's stock price has significantly rebounded from earlier lows. As of Thursday's close, the stock has risen 5.3% this year, indicating that market confidence in its competitiveness in the cloud computing and AI sectors is recovering.

In addition to the new Amazon position, Ackman also significantly increased his investment in Alphabet. In the second quarter, Pershing Square added 925,000 shares of Alphabet stock, a 20.84% increase, bringing the total number of shares held to 5.36298 million This increase has an impact of 1.19% on the current investment portfolio, with the total value of Alphabet's holdings reaching $945 million. As the parent company of Google, Alphabet also has a strong competitive advantage in the fields of artificial intelligence and cloud computing.

Analysis indicates that Ackman's heavy allocation in these two tech giants reflects his optimistic expectations for the commercialization prospects of AI technology.

According to reports, Ackman's investment in Amazon is part of a larger-scale asset reallocation towards AI-integrated companies. His holdings in Alphabet, Hertz, and Hilton highlight a strategy targeting mature companies with scalable AI ecosystems.

Alphabet's AI-driven search algorithms and cloud infrastructure resonate with Amazon's dual focus on data and automation. Similarly, Hertz and Hilton's application of AI in dynamic pricing and customer service demonstrates how traditional industries are adapting to the demands of the digital age.

This strategy contrasts with Ackman's reduction in holdings of companies like Canadian Pacific and Chipotle, where AI integration is still in its infancy. By prioritizing investments in companies with proven AI scalability, he is betting on long-term resilience rather than short-term gains.

Complete Exit from Railway Operator Canadian Pacific

While adding positions in tech stocks, Ackman adjusted his holdings in traditional industries: he completely exited his position in the railway operator Canadian Pacific Kansas City, which was once a successful case of Ackman's activist investment strategy.

Ackman also made slight adjustments to existing holdings, increasing his stakes in rental car service provider Hertz Global, hotel resort chain Hilton Worldwide, and Canadian investment firm Brookfield.

Analysis points out that this investor, known for his activist investment victories in companies like Canadian Pacific, Fortune Brands, and Allergan, reflects a strategic layout towards large tech stocks with this portfolio adjustment.

As of the end of the second quarter, Pershing Square's investment portfolio includes 11 stocks. The top five holdings are:

Uber Technologies (20.59%), Brookfield Corp (18.54%), Restaurant Brands International (11.11%), Amazon (9.31%), and Howard Hughes Holdings (9.27%)