economy
February 18, 2026
Hedge funds have a clear favorite Magnificent 7 stock, attracting the likes of Ackman, Druckenmiller and Klarman
Notable institutional investors bought a net 40.9 million shares in the cloud provider in the fourth quarter, according to a CNBC analysis of data from Verity.
TL;DR
- Hedge funds, including Pershing Square, Duquesne Family Office, and Baupost Group, collectively bought a net 40.9 million Amazon shares in Q4.
- Amazon is now the most favored Magnificent Seven stock among these leading institutional investors.
- Despite a recent stock decline of over 20% from its November high, 92% of analysts covering Amazon have a buy rating.
- Amazon Web Services (AWS) generated $35.58 billion in revenue last quarter, exceeding analyst expectations.
- Concerns about high valuations and massive capital expenditures, especially a projected 2026 spending of $200 billion, have weighed on the stock.
- Value investors like Seth Klarman took a significant stake, attracted by Amazon's historically low forward P/E ratio compared to its five-year average.
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