Billionaire Investors' Favorite AI Shares to Acquire

Amazon, the global e-commerce giant, has announced its Q2 earnings, showcasing a remarkable growth trajectory across its various business segments.

The company's operating profit soared by an astounding 471% since 2022, reaching a staggering $77 billion over the last year. This surge can be attributed to the robust performance of both its e-commerce business and Amazon Web Services (AWS).

Amazon's e-commerce business experienced a notable acceleration in growth, with total sales growing 12% year over year on a constant-currency basis. The online store also marked the first quarter of double-digit growth for the online store since Q3 2022, with a 10% increase in sales.

Meanwhile, AWS continued its steady growth, expanding by 17% year over year in Q2. This growth was bolstered by new agreements with notable companies such as PepsiCo, Airbnb, and Peloton Interactive. Despite AWS growing at about half the rate of Microsoft Azure and Google Cloud, its revenue is expected to continue growing for many years due to the size of the on-premises servers market, which accounts for 85% of information technology spending.

Interestingly, AWS's generative AI business is experiencing triple-digit growth, indicating a promising future for the company in the rapidly evolving AI sector.

Investor interest in Amazon has been high, with notable figures such as Bill Ackman purchasing over 5.8 million shares of Amazon stock in Q2, worth nearly $1.3 billion at quarter's end. Ackman, known for concentrating his portfolio in a handful of carefully selected investment opportunities, usually no more than a dozen holdings, believes in the long-term potential of Amazon.

The stock's forward P/E of 34 reflects high investor expectations for growth. The consensus analyst estimate calls for Amazon's earnings to grow at an annualized rate of 18% in the coming years, higher than estimates for Microsoft.

Pershing Square, led by Ackman, has a record of delivering market-beating returns. An original investment by Pershing Square grew by a 27-fold compared to a 9-fold gain if invested in the S&P 500, underscoring the firm's ability to identify and capitalise on growth opportunities.

Despite the search results not providing specific information about which billionaires bought shares in Amazon during the second quarter, the company's impressive performance and the faith shown by investors like Ackman suggest a positive outlook for Amazon's future.