Leading hedge funds have filed their 13Fs for the first quarter of 2026, and we see some interesting changes at a few, particularly Berkshire Hathaway (BRK.B) (BRK.A) and Pershing Square Holdings. Berkshire sold several smaller holdings in the quarter and was a net seller of stocks for the 14th consecutive quarter. Importantly, it was the first filing under the leadership of Greg Abel, who took over from the legendary Warren Buffett earlier this year. Meanwhile, what caught the eye was Berkshire doubling down on Alphabet (GOOG) (GOOGL) while adding new positions in Delta Air Lines (DAL) and Macy’s (M). Moreover, the conglomerate exited Amazon (AMZN), a position it had initiated seven years ago. The decision was likely taken by Abel, even though the company usually does not explicitly tell who bought or sold a stock.
However, Bill Ackman of Pershing Square – a self-described “Warren Buffett devotee” –doubled down on Amazon, making it the fund’s second biggest holding. He also added Microsoft (MSFT) shares while trimming the stake in Alphabet. In a social media post, Ackman suggested that he finds Alphabet stock overvalued and Microsoft undervalued, even though he remains bullish on the former in the long term.
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Both Ackman and Abel are inspired by Buffett and have a value tilt in their investing philosophy. While only time will tell which of them got it right on Amazon, let’s explore whether investors should buy or sell Amazon stock.
Amazon Stock Forecast
Of the 57 analysts polled, 49 rate Amazon as a “Strong Buy” while five rate it as a “Moderate Buy.” Three analysts rate AMZN as a “Hold,” or some equivalent, and its mean target price of $315.67 is 15.3% higher than current levels.
While AMZN stock closed flat after its Q1 2026 earnings last month, several brokerages hiked the stock’s target price. Looking at some of the notable changes, Wolfe raised Amazon’s target price from $245 to $320 while Piper Sandler raised its from $260 to $315. Cantor Fitzgerald raised Amazon’s target price from $280 to $330 while Benchmark raised it by $95 to a Street-high of $370.
www.barchart.com 
www.barchart.com Amazon Stock Has Underperformed the Nasdaq Over the Last Two Years
Amazon has been a top pick for multiple brokerages for the last couple of years, but its price action hasn’t lived up to the high hopes that the sell-side analyst community pinned on the stock. AMZN is up nearly 50% over the last two years, which trails the Nasdaq Composite Index ($NASX). Sluggish e-commerce growth, market share losses in the cloud segment, and soaring capex taking a toll on its once enviable free cash flows are among the reasons a section of the market has been turning its back on Amazon. There are also concerns over artificial intelligence (AI) agents denting Amazon’s digital advertisement business. However, I believe the fears are overblown, even though not totally misplaced.
www.barchart.com Amazon Is an AI Play
Amazon is among the best AI plays out there, and the company is using the technology internally while also monetizing it through third-party sales, particularly in Amazon Web Services (AWS). During the Q1 2026 earnings call, Amazon said that AWS is now a $150 billion annual revenue run-rate business with an order backlog of $364 billion, which does not include the $100 billion in commitments from Anthropic.
Furthermore, Amazon is scaling up its chip business, and its Trainium3 chips that it started shipping earlier this year are almost fully subscribed. And, much of its Trainium4 chips, which won’t be available broadly for 18 months, have been reserved. According to Amazon, if its chip business were a standalone company, its annual revenues would be $50 billion. Amazon continues to look for newer avenues to monetize its AI capex, and in the most recent move, it has started selling its AI shopping tech to other retailers.
Internally, AI is helping Amazon make its e-commerce platform even better, which would eventually lead to higher sales. AI has also helped Amazon cut down on costs and improve its logistics.
Should You Buy Amazon Stock?
Amazon trades at a forward price-to-earnings multiple of 34.39 times, which I believe is quite reasonable even though not mouthwatering cheap. Given the kind of growth story Amazon brings to the table with its AI initiatives, I am not inclined to sell Amazon shares even though I won't be tempted to add more to my positions, as the risk-reward looks quite balanced at these levels, and I don’t see much near-term upside in the stock.
On the date of publication, Mohit Oberoi had a position in: AMZN , GOOG , MSFT . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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