Bill Ackman sells Alphabet, boosts Amazon to fourth-largest holding.

Bill Ackman's Pershing Square Capital Management has made a significant shift in its investment strategy by selling off its position in Alphabet, thereby elevating Amazon to its fourth-largest holding. This move was executed in the second quarter of 2026, with Amazon now comprising approximately 10% of Pershing Square's reported assets. Ackman’s decision reflects his belief in Amazon's strong growth potential, particularly in the realms of artificial intelligence and e-commerce.

This strategic pivot comes as Ackman continues to seek opportunities in the tech sector. He began reducing his stake in Alphabet in late 2025, a decision he attributed to a need for liquidity to invest in Microsoft. Despite trimming his Amazon investment during the second quarter, he remains optimistic about the company's trajectory. Pershing Square's latest update to investors highlighted expectations for Amazon's earnings to grow by over 20% annually, driven by robust performance from Amazon Web Services (AWS) and a thriving e-commerce business.

Amazon's financial performance has validated Ackman's investment thesis. When he initially invested in April 2025, AWS was already showing signs of growth, reporting a 17% increase in revenue year-over-year. Recently, that growth accelerated to 37%, marking the fastest pace in over four years. In the same quarter, Amazon's overall revenue rose 20% year-over-year, while operating income surged by 43%, reaching $27 billion. These figures indicate that Amazon's retail operations have substantial room for profitability improvements, supported by advancements in robotics and inventory management.

Looking ahead, Ackman anticipates that Amazon will continue to deliver high double-digit earnings growth. The company's ongoing investments in technology and automation are expected to enhance its operational efficiency and profitability. As the landscape of technology and retail evolves, Ackman’s confidence in Amazon suggests that it may remain a focal point of his investment strategy for the foreseeable future.