Billionaire Investors Boost Holdings in Amazon Shares. Is Following Suit Advisable?

Billionaires Invest Heavily in Amazon Shares - Is it advisable for you to do the same?

Amazon continues to impress with its consistent high-single-digit to low-double-digit revenue growth rate, a trend that has held steady for some time. This growth is attributed to the success of two key areas: Amazon Web Services (AWS) and advertising services.

The growth of AWS, Amazon's cloud computing division, is particularly noteworthy. In Q2 2025, AWS reported an annual cloud revenue of $30.9 billion and a growth rate of 17.5%. This surge in growth is due in part to the increasing demand for AI workloads coming online.

Advertising services, another significant part of Amazon's business, have been the company's fastest-growing segment over the past few years. In Q2, these services grew by 23% year over year. Although Amazon does not disclose the operating margin for this segment, it's reasonable to assume they are high, given the impressive margins of companies like Meta Platforms and Alphabet.

The success of AWS and advertising services is key to Amazon's stock performance. In fact, these factors have contributed to improvements in Amazon's commerce divisions' operating margins.

Notably, billionaire investors Warren Buffett and Berkshire Hathaway have owned Amazon for a long time. More recently, hedge fund managers like Bill Ackman at Pershing Square and Chase Coleman at Tiger Global Management have added Amazon shares to their portfolios. In Q2, Ackman purchased $1.28 billion worth of Amazon shares, while Coleman increased his Amazon position by 62%.

These investments indicate a positive outlook on Amazon's future. Ackman, in particular, views Amazon as a high-conviction investment supported by its accelerating e-commerce growth, improved cost efficiency, and AI capabilities integrated into its services.

Despite slower operating profit growth compared to the past, Amazon is still posting impressive growth. In the second quarter, Amazon's revenue rose by 13% year over year. This growth, combined with the potential for further improvements in operating margins due to the continued growth of AWS and advertising services, could lead to outsized profit growth compared to revenue growth.

The slow revenue growth of Amazon does not necessarily indicate a lack of growth potential for the stock. In fact, the focus on Amazon's operating income growth by investors suggests that there is still much to be gained from this tech giant.

In conclusion, the success of AWS and advertising services, combined with the bullish bets of renowned investors like Buffett, Ackman, and Coleman, make Amazon an attractive investment opportunity. The company's continued growth in AI and cloud computing, as well as its integrated AI capabilities, position it as a long-term value play despite competition and valuation risks. The operating income growth data for Amazon can be found on YCharts for those interested in further analysis.