Pershing Square Capital Management, L.P. on Amazon
Thesis
We initiated a position in Amazon at a highly attractive valuation, believing it operates two world-class franchises. AI adoption is accelerating AWS’s growth, and we expect planned capacity increases to be rapidly absorbed. Furthermore, the retail business has the potential to nearly double its profitability through higher-margin advertising revenue, network density, and automation.
“Amidst broader market volatility in April 2025, we were able to opportunistically initiate a position in Amazon at a highly attractive valuation... AI adoption extends and potentially accelerates AWS’s growth runway... Structural potential to nearly double retail profitability, driven by increasing mix of higher-margin advertising revenue, network density, and automation initiatives”