Billionaire Investor Bets Bigger On Amazon As Cloud, AI Soar

Benzinga · 1d ago

Activist investor Dan Loeb’s Third Point LLC boosted its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 4% in the third quarter of 2025.

Details

According to recent 13F filings, reflecting his holdings as of Sept. 30, Third Point raised its stake to 2.81 million shares from 2.71 million in the second quarter of 2025 and 2.35 million shares in the first quarter of 2025.

Also Read: Amazon Hands AI Keys To A 27-Year Company Insider

Recent Earnings Release

In October, the e-commerce giant reported third-quarter net sales of $180.2 billion, which beat the Street consensus estimate of $177.8 billion and earnings per share of $1.95, exceeding the Street consensus estimate of $1.57.

Amazon is guiding fourth-quarter net sales to be in the range of $206.0 billion to $213.0 billion, up 10% to 13% year over year.

Analyst View

Following the earnings release, several analysts raised the price forecast for the company.

Deepwater Asset Management managing partner Gene Munster called Amazon’s earnings reaction a very positive one, underscoring that investors should focus on margin expansion. He noted that automation and artificial intelligence are key contributors to Amazon’s improved profitability.

A Telsey analyst noted that “AWS remained the star of the show, with growth accelerating due to rising demand for cloud and AI products.”

Bank of America Securities' Justin Post, JP Morgan's Doug Anmuth and Wedbush's Scott Devitt said Amazon demonstrated meaningful progress with new autonomous AI agents, stronger performance from its Trainium chips, and deeper integration with Nvidia technology.

Other Key Events

Amazon disclosed a substantial investment in India's artificial intelligence and cloud computing sector, with a commitment of over $35 billion by 2030.

Also, Amazon is reportedly in "fluid talks" to invest $10 billion into OpenAI in a round that would value the company behind ChatGPT at more than $500 billion, according to Reuters. The move would reportedly give OpenAI access to Amazon's Trainium chips.

The company is set to lay off 370 employees or about 8.5% of its Luxembourg workforce. In 2025, the Big Tech giant had shared plans to cut 14,000 jobs.

Moreover, Amazon introduced its new Graviton5 processors to help customers run cloud applications faster, more efficiently, and at lower cost as their workloads grow more complex.

Stock Comparison

Year-to-date, Amazon shares rose around 5.31% compared to the growth of 32.78% in ProShares Online Retail ETF (NYSE:ONLN) and 9.00% in State Street Consumer Discretionary Select Sector SPDR ETF (NYSE:XLY).

Also, the company's share growth lags behind its closest peers, Alibaba Group (NYSE:BABA) and PDD Holdings Inc. (NASDAQ:PDD), which grew 77.64% and 16.04%, respectively.

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Image created using artificial intelligence via Midjourney.