Hedge Funds Increase Positions in Amazon (AMZN) Amid Valuation Belief

Published on 6/27/2026 · Source: finance.yahoo.com

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Hedge funds, including Pershing Square and Appaloosa Management, have reportedly increased their positions in Amazon (AMZN), viewing it as undervalued compared to AI and cloud computing rivals like Nvidia (NVDA) and Intel (INTC). Amazon's price-to-sales ratio stands at 3.4x, while its forward and trailing P/E ratios hover around 30. The company anticipates spending approximately $200 billion on AI infrastructure this year. Despite a 7% increase in stock price over the last 12 months, Amazon's stock remains 20% off its recent highs, presenting a perceived opportunity for investors.

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About Amazon.com Inc. (AMZN)

Amazon is the largest U.S. e-commerce retailer and, through Amazon Web Services (AWS), the leading cloud-infrastructure provider, with growing advertising and logistics arms.

The Consumer Discretionary sector covers retailers, automakers and leisure companies whose sales rise and fall with consumer confidence.