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The director of the hedge fund billionaire Bill Akman – who has become famous for his bold and contradictory proofs – has become a great name in the world of investment in recent years. When one of the stocks buy today, people tend to note.
Recently, I invested Ackman, which runs Pershing Square Capital, in one of my favorite favorites S & P 500 Growth shares. Should investors think about following this?
Wonderful privilege in Very attractive evaluation’
Ackman shares that have been purchased Amazon (NASDAQ: Amzn), one has a big site (it’s currently the second largest individual shares).
He first started buying shares in April when it witnessed a large sale due to the uncertainty in customs tariffs. At that time, trading was much lower than its highest levels.
We do not have much information about trade now (we will be able to get more details when publishing Q2 13F regulatory files in mid -July). However, it is clear that Akman and his team believed that they got a long -term winner at a great price.
Based on a call with analysts, the chief investment official in Birching Square Ryan Israel said that the company acquired “Wonderful privilege“in”Very attractive“The evaluation. It should be noted that Israel praised the company’s multi -side business model, saying that the company must be able to move in any slowdown resulting from the customs tariff and continue to provide strong growth in profits.
Is Amazon worth a look today?
Is this growth worth looking today? I think so. It has seen a great bounce since its lowest level in April (Ackman’s purchase was very good). But I still think the evaluation is attractive at today’s share.
Nowadays, Wall Street expects Amazon to generate profits per share 6.17 dollars for 2025. This puts the stock on the price ratio (P/E) around 33.
This is high according to UK standards, but I do not think it is unreasonable given the huge Amazon record (it achieves arrow price gains about 25 % annually over the past decade) and long -term growth capabilities. This is a good position to take advantage of the growth of a group of industries including online shopping, cloud computing, artificial intelligence (AI), digital advertising, video flow, digital health care, spacecraft cars, and even self -driving cars.
Other attractive features include their public budget for the fortress and huge cash flows. Last year, the company produced the operating cash flow with a huge amount of $ 116 billion (an increase of about 36 % on year).
I will point out that while I am optimistic about Amazon, I do not expect the stock to rise in a straight line from here. Historically, the stocks were very volatile and I expect to see continued rise and landing.
Looking at the future, there are many factors that may lead to the weakest results and fluctuation of prices including Donald Trump’s tariff, consumer slowdown, less work on cloud computing/artificial intelligence, and competition from adult technology competitors.
However, taking a view from five to 10 years, I see huge potential here. I think this stock can outperform the market with a long -term margin and deserve a closer look.