Bill Ackman's Pershing Square Made Amazon Its Fourth-Largest Holding by Dumping Alphabet. Here's the Thesis Behind the Switch.

The article argues that Bill Ackman’s Pershing Square remains constructive on Amazon after trimming the position in Q2 2026. Amazon is still about 10% of reported assets and the firm says the company’s growth thesis is playing out: AWS revenue growth accelerated to 37% in the latest quarter from 17% when Ackman bought in April 2025, while total revenue rose 20% and operating income jumped 43% to $27 billion. Pershing Square expects Amazon earnings to compound above 20% annually, supported by AI demand, cloud capacity expansion, e-commerce growth, robotics, and improved retail margins. The stock trades around 22x forward earnings, which the article frames as reasonable given the growth outlook. Overall, the piece is bullish on Amazon’s fundamentals and suggests the recent trim was portfolio rebalancing rather than a negative view.