Amazon Stock Gains as Ackman Backs Accelerating AWS Growth

This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN), the e-commerce and cloud powerhouse, gained approximately 0.6% Thursday morning as Pershing Square made one thing clear: it is not scared of Amazon’s massive AI spending spree. The fund kept Amazon as a core holding and argued that Wall Street may be staring too hard at the data-center bill while missing what is happening underneath. AWS is accelerating. Retail is getting stronger. And Amazon may be spending heavily because demand is giving it every reason to.

AWS is where the story gets hot. Pershing said revenue growth has accelerated from roughly 20% during 2024 and 2025 to more than 30% this year as AI demand ramps up. Amazon’s retail machine is moving faster too, with first-quarter unit volumes jumping 15%the fastest pace since 2021, according to the fund. That combination matters. Amazon is not throwing billions at AI while waiting for growth to arrive. Growth is already showing…