Major hedge funds made Amazon their most frequently overweighted stock in Q1 2026, with Bill Ackman's Pershing Square and David Tepper's Appaloosa Management leading the charge. The moves reflect growing confidence in Amazon's e-commerce cash flow, AI-linked cloud services, and digital advertising growth.
Pershing Square and Appaloosa's Big Bets
Ackman's firm added 1.84 million Amazon shares, boosting its position by 19% to join Brookfield and Uber as top holdings. Tepper went further, nearly doubling Amazon exposure with a 98% stake increase that made it Appaloosa's largest equity position at $900 million. The firm simultaneously cut Nvidia, Alphabet, and Alibaba while adding Taiwan Semiconductor and surging 242% into Uber shares.
Widespread Fund Conviction
Amazon appeared in the top holdings of Daniel Loeb, Seth Klarman, and Chase Coleman's funds, confirming its status as the sector's standout. Warren Buffett’s Berkshire Hathaway took a different path, increasing Alphabet while reducing Bank of America exposure. This divergence highlights how Amazon's appeal cut across diverse investment strategies.
Three Pillars Driving Interest
Managers cited Amazon's resilient e-commerce cash flow as a bedrock strength. They also pointed to surging demand for AWS cloud services tied directly to AI infrastructure needs. Digital advertising revenue acceleration provided the third leg of the investment case, with no funds mentioning other factors.
Hidden Gaps in the Data
These reported positions come with significant caveats. 13F filings carry a 45-day reporting lag and exclude options, short positions, and non-U.S. assets. The picture shows only long positions as of March 31, not current strategies. Many funds likely held derivatives or non-U.S. instruments not captured in the data.
The next opportunity to gauge whether this Amazon momentum continues arrives with Q2 filings due in mid-August.
