Latest news with #PershingSquare
Yahoo
6 days ago
- Business
- Yahoo
Prediction: This Unstoppable "Magnificent Seven" Member Will Be Wall Street's First $5 Trillion Stock, and Billionaire Bill Ackman Just Bought the Dip
Amazon has witnessed a nearly threefold rise in valuation over the last few years, as AI has become more of a central part of the company. Amazon continues to invest in various areas of AI that can help accelerate revenue growth and profit margin expansion in the long run. While Amazon stock has recovered from a notable dip last month, it still looks like an attractive buy for long-term investors. 10 stocks we like better than Amazon › While there isn't an official start date marking the artificial intelligence (AI) revolution, I personally like to use Nov. 30, 2022, as my timestamp. This is the day that OpenAI released ChatGPT to the public, virtually changing how businesses and consumers access information at the flip of a switch. Back then, Amazon (NASDAQ: AMZN) sported a market capitalization of $835 billion. Today, the company's value is almost triple -- hovering at around $2.3 trillion. While Amazon may not fetch as much attention as its "Magnificent Seven" peers Nvidia or Tesla, the company is quietly building a thriving AI ecosystem -- and Wall Street is finally starting to take notice. Last month, investors learned that billionaire hedge fund manager Bill Ackman initiated a stake in Amazon through his investment firm, Pershing Square Capital Management. Let's explore how Amazon is integrating AI across its various businesses. More importantly, I'll analyze the recent price action in the stock to help make the case for why I think Amazon is positioned to become Wall Street's first $5 trillion stock. The most obvious area of Amazon's ecosystem that has benefited from the AI boom so far is the company's cloud computing segment, Amazon Web Services (AWS). Over the last couple of years, AWS has invested billions into a start-up called Anthropic, which competes with OpenAI. Throughout this partnership, AWS has witnessed notable revenue acceleration combined with significant expansion in operating margins. This is an important notion to understand, as AWS accounts for the majority of operating profits across the entire Amazon ecosystem. Thanks to a successful partnership with Anthropic so far, Amazon now has even more financial flexibility, which it can parlay into other AI-powered services. For instance, Amazon is also testing various forms of AI robotics in its fulfillment centers, which could theoretically bring new levels of efficiency and automation to processes previously managed by human labor. Lastly, Amazon is also developing its own custom chipsets -- dubbed Trainium and Inferentia. In the long run, these could be more opportunities for Amazon to complement its existing hardware business while entering new markets to compete more directly with existing semiconductor designers. As of this writing (June 11), Amazon's stock has declined by roughly 1% on the year. While that might initially come across as uninspiring, consider how sharply shares have rebounded since bottoming out at around $167 in April. It's my suspicion that Ackman took advantage of the sell-off last month and bought the dip. I bring this up because, interestingly, Pershing Square's Amazon position was not included in the fund's 13F filing for the first quarter. Rather, Ackman's Amazon position became publicly reported following news of a call he held with his investors. The chart below benchmarks Amazon's market cap growth relative to several of its Magnificent Seven peers since the release of ChatGPT. I purposely excluded Apple and Tesla from this analysis, as I don't see much in the way of direct competition to Amazon. There are a couple of notable takeaways from the trends above. First, Amazon's valuation has risen considerably more than those of both Microsoft and Alphabet over the last couple of years. This is significant because both companies compete fiercely with Amazon in the cloud computing market, specifically. I see this as a potential signal that investors may be more bullish on Amazon's ability to maintain an edge in the cloud landscape, despite intensifying investments in AI infrastructure from the competition. In addition, it's clear that Nvidia has been the best Magnificent Seven investment throughout the AI revolution thus far. But as I alluded to above, Amazon actually has a unique opportunity to begin competing with Nvidia through the introduction of its new chipsets. In my eyes, Amazon has a strong foundation to continue accelerating revenue and profit growth for the long run. Despite already achieving a monster run over the last couple of years, I think investors will continue to place a premium on Amazon stock relative to its peers, leading to further valuation expansion in the years to come. For these reasons, I believe Amazon's current trajectory supports the idea that the company could see a more than twofold rise in market cap and reach a $5 trillion valuation before its peers. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable "Magnificent Seven" Member Will Be Wall Street's First $5 Trillion Stock, and Billionaire Bill Ackman Just Bought the Dip was originally published by The Motley Fool
Forbes
6 days ago
- Business
- Forbes
2025 Forbes Iconoclast Summit: The Activist Perspective
| Jun 16, 2025, 02:18PM EDT Forbes Chairman & Editor-in-Chief Steve Forbes is joined by Pershing Square Founder & CEO Bill Ackman at the 2025 Forbes Iconoclast Summit in New York City.
CBS News
16-06-2025
- CBS News
1 person hospitalized after hit-and-run crash in downtown LA
One person was hospitalized after a hit-and-run crash in downtown Los Angeles Sunday night. The collision happened at roughly 7:35 p.m. near the intersection of 5th and Hill streets near Pershing Square, according to the Los Angeles Police Department. Police said the suspect was in a red Toyota vehicle.
Globe and Mail
15-06-2025
- Business
- Globe and Mail
Billionaire Bill Ackman Has Nearly 20% of His Hedge Fund in 1 Growth Stock That's Up 44% in 2025
The average investor can find lucrative investment ideas by following the experts. Bill Ackman, the billionaire hedge fund manager who runs Pershing Square Capital Management, is one such professional. His firm's strategy involves making bold bets on a select few businesses, a focus that rhymes with Warren Buffett's philosophy. That's why it's noteworthy when one position commands 18.5% of the fund at a market value of $2.2 billion (as of March 31). This company is the single largest holding for Ackman. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » As of June 12, this growth stock has soared 44% in 2025. That impressive performance beats the major indexes by a wide margin. Maybe it's time for investors to take a closer look at this business. Strong fundamentals The stock that Pershing Square made a big investment in is Uber (NYSE: UBER). When the hedge fund first bought shares in January, the stock had just come off a disappointing 2024 that saw the share price dip 2%. After that kind of upsetting performance, Ackman still was impressed with Uber's strong fundamentals. Those fundamentals are worth highlighting. Growth is a key part of the Uber story, even though it's a global scale platform. Revenue was up 14% in Q1 (ended March 31), driven by double-digit gross booking gains in both the mobility and delivery segments. It's encouraging to see both parts of Uber's business registering meaningful growth, particularly in the uncertain economic environment. Another positive development deals with Uber's profitability. The company generated over $1.2 billion in operating income just in the last three months, highlighting how financially sound it has become. For an indication of just how much Uber has evolved, understand that in Q1 2019, the business posted a massive $1 billion operating loss. The management team is optimistic. They expect adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to increase at a "high 30s% to 40%" compound annual rate between 2024 and 2027. Competitive positioning Uber's most defining characteristic is probably that it benefits from a powerful network effect. As more riders come to the app to book a trip, drivers who are looking to boost their income will follow because there is more of an opportunity to make money. With this added capacity, Uber becomes more valuable to riders. It's a positive feedback loop. That network effect underscores Uber's remarkable competitive position. This is becoming more evident with the rise of autonomous vehicle (AV) technology. Uber's direct relationship with riders, in particular, makes it a very valuable partner for AV firms looking to achieve faster adoption. Of course, it benefits Uber by giving it a low-risk, capital-light avenue to get into this space that just might be the future of transportation. Uber is one of the rare businesses whose name is used also as a verb. This highlights how well the service resonates with people. Alphabet 's Google, Airbnb, and Netflix are other prominent examples. These are all dominant enterprises in their own right. Reasonable valuation The path of least resistance is to immediately follow in Bill Ackman's footsteps and buy Uber shares. But investors must take the time to understand the investment case with this opportunity. Once that hurdle checkpoint is cleared, the next step is to take the valuation into account. Uber's stock has been on quite the run, accelerating 109% higher since June 2023. Strong financial performance in recent years is doing a great job of winning over the investment community. But the valuation is still very reasonable. The stock trades at a forward price-to-earnings ratio of 23.5. Maybe now is a good time to consider initiating a position in the company. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Alphabet, Netflix, and Uber Technologies. The Motley Fool has a disclosure policy.
Yahoo
15-06-2025
- Business
- Yahoo
Billionaire Bill Ackman Has Nearly 20% of His Hedge Fund in 1 Growth Stock That's Up 44% in 2025
This dominant platform-enabled business is Pershing Square's largest holding, demonstrating Bill Ackman's strong conviction. Running a scaled mobility service, powered by a network effect, makes this company a partner of choice for firms working on autonomous vehicle technology. Even after the stock's huge rise in 2025, the valuation is compelling. 10 stocks we like better than Uber Technologies › The average investor can find lucrative investment ideas by following the experts. Bill Ackman, the billionaire hedge fund manager who runs Pershing Square Capital Management, is one such professional. His firm's strategy involves making bold bets on a select few businesses, a focus that rhymes with Warren Buffett's philosophy. That's why it's noteworthy when one position commands 18.5% of the fund at a market value of $2.2 billion (as of March 31). This company is the single largest holding for Ackman. As of June 12, this growth stock has soared 44% in 2025. That impressive performance beats the major indexes by a wide margin. Maybe it's time for investors to take a closer look at this business. The stock that Pershing Square made a big investment in is Uber (NYSE: UBER). When the hedge fund first bought shares in January, the stock had just come off a disappointing 2024 that saw the share price dip 2%. After that kind of upsetting performance, Ackman still was impressed with Uber's strong fundamentals. Those fundamentals are worth highlighting. Growth is a key part of the Uber story, even though it's a global scale platform. Revenue was up 14% in Q1 (ended March 31), driven by double-digit gross booking gains in both the mobility and delivery segments. It's encouraging to see both parts of Uber's business registering meaningful growth, particularly in the uncertain economic environment. Another positive development deals with Uber's profitability. The company generated over $1.2 billion in operating income just in the last three months, highlighting how financially sound it has become. For an indication of just how much Uber has evolved, understand that in Q1 2019, the business posted a massive $1 billion operating loss. The management team is optimistic. They expect adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to increase at a "high 30s% to 40%" compound annual rate between 2024 and 2027. Uber's most defining characteristic is probably that it benefits from a powerful network effect. As more riders come to the app to book a trip, drivers who are looking to boost their income will follow because there is more of an opportunity to make money. With this added capacity, Uber becomes more valuable to riders. It's a positive feedback loop. That network effect underscores Uber's remarkable competitive position. This is becoming more evident with the rise of autonomous vehicle (AV) technology. Uber's direct relationship with riders, in particular, makes it a very valuable partner for AV firms looking to achieve faster adoption. Of course, it benefits Uber by giving it a low-risk, capital-light avenue to get into this space that just might be the future of transportation. Uber is one of the rare businesses whose name is used also as a verb. This highlights how well the service resonates with people. Alphabet's Google, Airbnb, and Netflix are other prominent examples. These are all dominant enterprises in their own right. The path of least resistance is to immediately follow in Bill Ackman's footsteps and buy Uber shares. But investors must take the time to understand the investment case with this opportunity. Once that hurdle checkpoint is cleared, the next step is to take the valuation into account. Uber's stock has been on quite the run, accelerating 109% higher since June 2023. Strong financial performance in recent years is doing a great job of winning over the investment community. But the valuation is still very reasonable. The stock trades at a forward price-to-earnings ratio of 23.5. Maybe now is a good time to consider initiating a position in the company. Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Alphabet, Netflix, and Uber Technologies. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Has Nearly 20% of His Hedge Fund in 1 Growth Stock That's Up 44% in 2025 was originally published by The Motley Fool
