Pershing Square Seizes Opportunity with Amazon Investment Following Significant Stock Decline

Bill Ackman’s Pershing Square Capital Management has recently taken a significant position in Amazon.com Inc., dubbing it a “remarkable franchise” and highlighting the attractive price at which they acquired shares.

This investment came after Amazon’s stock plummeted over 30% earlier this year due to worries surrounding the rapid growth of generative AI technologies and U.S. tariffs, as noted by Ryan Israel, the firm’s chief investment officer, during an analyst call on May 22.

Amazingly, Amazon holds the top spot on Transport Topics’ list of North America’s largest logistics firms and ranks first globally in freight services.

“We believe this is a uniquely favorable moment for investment,” Israel remarked. He expressed confidence that Amazon would navigate any potential downturns in its cloud sector effectively.He also mentioned that they expect earnings per share to grow by over 20% moving forward.

during a shareholder meeting on May 22, CEO andy Jassy reassured attendees that consumer spending remains stable despite new tariffs imposed by President trump earlier this year.

The market is keenly observing how U.S. retailers are adapting to these tariffs—some reaching as high as 145% on Chinese imports—especially since trump announced a temporary halt for negotiations.

A month ago, Amazon executives indicated they were preparing for tougher business conditions due to rising tariff rates.

The stock saw its highest point of the year on February 4 at $242.06 but faced a steep decline of about 31% by April’s end. As of May 22, shares rebounded slightly with an increase of 1.4%, closing at $203.97 around mid-afternoon in New York.