Hedge Funds Are Buying Up Amazon Stock. Should You Join In, Too?

Major hedge funds like Pershing Square and Appaloosa Management are increasing their Amazon positions, viewing the stock as undervalued compared to other AI and cloud computing companies. Amazon trades at a modest 3.4x price-to-sales ratio, significantly lower than competitors like Nvidia (18x) and Intel (12x), making it an attractive option for investors willing to accept its heavy AI infrastructure spending of around $200 billion annually.