Buffett's Successor Exits Amazon Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy AMZN?
Source: Fool
- Investment Strategy Contrast: Warren Buffett's successor, Greg Abel, completely exited Berkshire's Amazon investment in Q1 2026, while billionaire David Tepper nearly doubled his stake in the same stock, showcasing their divergent strategies and differing market perspectives.
- Reason for Holdings Change: Abel's sell-off likely relates to Todd Combs' departure to JPMorgan Chase in January 2026, prompting Berkshire to clean out all positions managed by Combs, indicating a strategic shift following management changes.
- Market Reaction Analysis: Amazon's Q1 sell-off was primarily due to significant investments in AI infrastructure, and Tepper likely viewed the market's punishment of Amazon as unjust, seizing the opportunity to increase his investment during the stock's decline, reflecting his confidence in future growth.
- Future Outlook: Since the end of Q1, Amazon's stock has risen over 20%, and Tepper's decision may be seen as a prescient investment in hindsight, especially considering Amazon's expansion potential in AI and satellite internet services.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 264.140
Low
175.00
Averages
280.01
High
325.00
Current: 264.140
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tepper's Amazon Stake Increase: Billionaire David Tepper nearly doubled his stake in Amazon after its stock price decline, demonstrating confidence in the company's growth potential, particularly in light of its investments in AI infrastructure.
- Market Reaction and Investment Logic: Amazon's Q1 sell-off was primarily driven by increased investments in AI, and Tepper likely viewed the market's punishment of Amazon as unjust, seizing the opportunity to buy at a discount, showcasing his sharp insight as a top hedge fund manager.
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