Overview

• Pershing Square Capital Management acquired Amazon shares after a more than 30% drop in the stock price earlier this year, triggered by tariffs and AI competition concerns.
• The hedge fund financed the Amazon investment by liquidating its position in Canadian Pacific, a move described as necessary despite strong confidence in the railroad company.
• Pershing Square also rebalanced its portfolio, adding stakes in Hertz and Uber while adjusting holdings in Chipotle, Hilton, Universal Music, and Nike options.
• Chief Investment Officer Ryan Israel expressed confidence in Amazon’s ability to overcome challenges in its cloud business and mitigate the impact of tariffs on retail earnings.
• Amazon shares rose over 2% following the announcement, with Pershing projecting the company to maintain over 20% earnings-per-share growth.