Billionaire investors have ramped up their stakes in Amazon (AMZN), a stock that has astonishingly returned over 200,000% since its IPO 29 years ago. Notable figures like Bill Ackman and Stanley Druckenmiller added shares in Q4, signaling their confidence in the tech giant’s continued growth. Despite the purchases being reported with a lag, Amazon’s current stock price is lower than it was during that quarter, potentially making it an attractive buy for retail investors.
The appeal lies not just in Amazon’s e-commerce dominance but significantly in its cloud computing arm, Amazon Web Services (AWS). This segment is experiencing rapid growth, particularly in AI applications, where AWS’s custom Trainium processors offer a cost-effective alternative to traditional GPUs. With AWS contributing over half of Amazon’s operating profits and expanding at a triple-digit rate, the stock remains a compelling option for those looking to capitalize on AI trends.
For market professionals, Amazon’s fair valuation at 27 times forward earnings suggests it remains a strong investment choice, particularly as it positions itself at the forefront of the AI revolution.
Source: fool.com