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Yahoo
4 days ago
- Business
- Yahoo
‘Time to Stock Up,' Says Bill Ackman After Pulling the Trigger on Amazon Stock (AMZN)
Bill Ackman is making waves again—his Pershing Square Capital Management just made a bold bet on Amazon (AMZN), snapping up nearly $1 billion in stock during Q1 2025. The blockbuster move comes at a time when Amazon is under pressure from tariffs, slowing AWS growth, and fierce AI competition—issues that have dragged the stock down year-to-date. Ackman's aggressive play has reignited debate on whether now is the moment to buy into Big Tech's most embattled giant. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Despite macroeconomic headwinds and competition, Ackman sees a resilient AWS, underestimated retail strength gains, and temporary market overreactions as compelling reasons to 'stock up' on AMZN, and I happen to agree. Amazon Web Services (AWS) saw its growth accelerate in the first quarter of 2025, posting $25 billion in revenue, a 17% year-over-year increase. Profitability surged as well, with operating income nearly doubling from $5.1 billion in Q1 2024 to $9.4 billion. As AWS scales, it continues to benefit from powerful tailwinds in the cloud computing industry, which is projected to grow at a 20.4% CAGR and surpass $1 trillion in the coming years. Competing with giants like Microsoft Azure and Google Cloud Platform (GCP), AWS is doubling down on AI to fuel further demand. Amazon's heavy investment in generative AI, through initiatives like its Bedrock platform and custom-built chips such as Trainium, is positioning AWS as a leader in this next phase of cloud innovation. Now accounting for roughly 17% of Amazon's total net sales, AWS has become a growth engine so significant that it could stand alone as a major tech company. Amazon's core retail segment continues to demonstrate strong momentum, with domestic revenue rising 12% year-over-year to $86.3 billion. International markets also contributed positively to the segment's growth. Importantly, Amazon has transformed this historically lower-margin business into a significantly more profitable one, reporting $5 billion in operating income for the quarter—a notable achievement given the inherent challenges of retail operations. This profitability reflects years of strategic investment in its fulfillment infrastructure, which has been refined to deliver faster shipping and reduce transportation costs. Despite persistent macroeconomic pressures and evolving consumer behavior, Amazon's first-quarter retail performance underscores the resilience of both its business model and customer demand. While the retail segment faces increased competition from players like Walmart and Temu, Amazon continues to lead the U.S. e-commerce market with a commanding 37.6% share, well ahead of Walmart's 6.4% in second place. Additionally, Amazon's advertising business—largely integrated within its retail ecosystem—is growing at an impressive 24% year-over-year and remains a key driver of overall profitability. Given Amazon's strong positioning across retail, cloud computing, and AI, it's easy to see why investors like Bill Ackman have taken an interest. The company offers exposure to a diversified array of high-growth sectors. Notably, Amazon's valuation appears reasonable by historical standards, with a current price-to-earnings ratio of 32.8, compared to its typical range of 40 to 80 in recent years. On Wall Street, Amazon has a Strong Buy consensus rating based on 47 Buy, one Hold, and zero Sell ratings in the past three months. AMZN's average price target of $240.62 implies almost 17% upside potential in the next twelve months. DBS analyst Nashrullah Putra Sulaeman has a Buy rating on AMZN. He noted that Amazon's performance, particularly in its cloud segment, was impressive despite a decline in free cash flow due to increased capital expenditure. He also pointed out that 'Amazon's retail segment is on a recovery path, showing sustained profitability and improved operating margins.' Likewise, analyst Brent Thill of Jefferies maintains a Buy rating on AMZN with a price target of $240. He noted that a 6% acceleration in AWS backlog 'indicates a strong demand for AWS services, coupled with record operating margins of 39.5%, showcasing Amazon's ability to manage capacity constraints effectively.' Despite tariffs threatening its retail segment, the analyst believes the retail giant is better suited to handle macroeconomic headwinds than its competitors. In summary, Amazon continues to demonstrate strong performance across its key business segments. Its leadership in e-commerce provides a buffer against broader economic challenges, while accelerating growth in AWS underscores the company's successful diversification into high-margin, scalable markets. Strategic investments in AI further enhance its competitive positioning and open doors to new verticals. That said, investors should remain mindful of the risks. Cloud computing, digital advertising, and e-commerce are all intensely competitive industries, and Amazon's future success will hinge on its ability to maintain leadership in AWS while driving greater efficiency and sustainable profitability in its retail operations. Despite its operational momentum, Amazon's stock has lagged this year—an underperformance that has drawn attention from high-profile investors like Bill Ackman. With strong institutional support, reflected in Wall Street's 'Strong Buy' consensus rating, and exposure to several high-growth sectors, Amazon remains a compelling long-term opportunity for investors. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
2 Mega-Cap Stocks to Target This Week and 1 to Avoid
"Too big to fail" is how we would describe the megacap stocks in this article today. While they will likely stand the test of time, it's not all sunshine and rainbows as their scale can limit their ability to find new sources of growth. This dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. That said, here are two industry titans that still have big upside potential and one whose existing offerings may be tapped out. Market Cap: $368.6 billion Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE:HD) is a home improvement retailer that sells everything from tools to building materials to appliances. Why Does HD Worry Us? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Estimated sales growth of 1.3% for the next 12 months implies demand will slow from its six-year trend Capital intensity has ramped up over the last year as its free cash flow margin decreased by 2.5 percentage points Home Depot's stock price of $371 implies a valuation ratio of 24.2x forward P/E. If you're considering HD for your portfolio, see our FREE research report to learn more. Market Cap: $3.21 trillion Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets. Why Are We Backing NVDA? Annual revenue growth of 120% over the last two years was superb and indicates its market share increased during this cycle Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 74.3% Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety At $131.17 per share, Nvidia trades at 30.1x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Market Cap: $2.05 trillion Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube. Why Is GOOGL a Good Business? Alphabet's dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin. The company's profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term. Alphabet is trading at $168.77 per share, or 18.6x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as ServiceNow (+178% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
Gulf Insider
16-05-2025
- Business
- Gulf Insider
Hub71 and Google Launch AI Startups in Abu Dhabi
Abu Dhabi's Hub71 and Google have launched the Google for Startups Accelerator, a joint programme to scale AI-focused startups within Hub71+ AI. A total of 26 startups from the Hub71 community have been selected to join the inaugural cohort, gaining access to a tailored three-month curriculum. Startups will gain access to Google's global network of mentors, engineers, product leaders and Google Cloud credits. Abu Dhabi startups Top-performing startups will be eligible for up to $300,000 in credits, the highest tier of support available through the programme globally. They will also be considered for Google Cloud Platform (GCP) ecosystem tier credit allocations, further expanding their technical capabilities. These startups, already based within the Hub71 community, have previously benefited from up to AED500,000 ($136,000) in funding support, including AED250,000 ($68,000) in in-kind support services, AED250,000 ($68,000) in cash via a SAFE note and tailored mentorship. Now, through the Google for Startups Accelerator, they are gaining access to a powerful network of partners, technical experts and business development opportunities within the Hub71+ AI ecosystem, further strengthening their ability to scale globally from Abu Dhabi. Ahmad Ali Alwan, Chief Executive Officer of Hub71, said: 'Bringing the Google for Startups Accelerator to Abu Dhabi is a key milestone in advancing our position as a global centre for AI innovation. Together with Google, we are empowering founders to develop transformative technologies that address real-world challenges. 'Our ambition is for startups from Abu Dhabi to compete globally, lead with purpose, and create lasting impact.' Doron Avni, Vice President of Government Affairs & Public Policy (GAPP) for Emerging Markets at Google, said: 'Startups are at the forefront of solving critical challenges with AI, and our partnership with Hub71 is about equipping them with the resources to go further, faster. 'Through this accelerator, we are enabling Hub71 startups access to global expertise and infrastructure, so they can build AI solutions that make a real impact, both regionally and around the world.' Alongside mentorship and technical resources, Google will provide early-stage founders with tailored playbooks and toolkits, as well as introductions to its investment arms and Alphabet's wider network, opening doors to new funding and commercial opportunities. The launch follows the strategic agreement signed in late 2024 to bring Google's startup programme to Abu Dhabi, reinforcing a shared ambition to expand access to advanced digital infrastructure, attract top talent, and foster cross-border collaboration in AI. As Abu Dhabi continues to invest in emerging technologies, the accelerator programme marks a significant milestone in its journey to becoming a global centre for AI. With the support of a global tech leader and world-class ecosystem, selected startups are poised to scale breakthrough innovations and shape the future of AI from Abu Dhabi to the world. Also Read: Photos: US President Trump Arrives In Abu Dhabi Source Arabian Business
Gulf Today
15-05-2025
- Business
- Gulf Today
Google for Startups Accelerator welcomes 26 Hub71 ventures
Hub71, Abu Dhabi's global tech ecosystem, and Google have launched the Google for Startups Accelerator, a joint programme to scale AI-focused startups within Hub71+ AI, the ecosystem's specialist vertical, and drive innovation across high-impact sectors from Abu Dhabi. A total of 26 startups from the Hub71 community have been selected to join the inaugural cohort, gaining access to a tailored three-month curriculum. Startups will gain access to Google's global network of mentors, engineers, product leaders and Google Cloud credits. Top-performing startups will be eligible for up to $300,000 in credits, the highest tier of support available through the programme globally. They will also be considered for Google Cloud Platform (GCP) ecosystem tier credit allocations, further expanding their technical capabilities. These startups, already based within the Hub71 community, have previously benefited from up to Dhs500,000 in funding support, including Dhs250,000 in in-kind support services, Dhs250,000 in cash via a SAFE note and tailored mentorship. Now, through the Google for Startups Accelerator, they are gaining access to a powerful network of partners, technical experts and business development opportunities within the Hub71+ AI ecosystem, further strengthening their ability to scale globally from Abu Dhabi. Ahmad Ali Alwan, Chief Executive Officer of Hub71, said, 'Bringing the Google for Startups Accelerator to Abu Dhabi is a key milestone in advancing our position as a global centre for AI innovation. Together with Google, we are empowering founders to develop transformative technologies that address real-world challenges. Our ambition is for startups from Abu Dhabi to compete globally, lead with purpose, and create lasting impact.' Doron Avni, Vice President of Government Affairs & Public Policy (GAPP) for Emerging Markets at Google, said, 'Startups are at the forefront of solving critical challenges with AI, and our partnership with Hub71 is about equipping them with the resources to go further, faster. Through this accelerator, we are enabling Hub71 startups access to global expertise and infrastructure, so they can build AI solutions that make a real impact, both regionally and around the world.' Alongside mentorship and technical resources, Google will provide early-stage founders with tailored playbooks and toolkits, as well as introductions to its investment arms and Alphabet's wider network, opening doors to new funding and commercial opportunities. The launch follows the strategic agreement signed in late 2024 to bring Google's startup programme to Abu Dhabi, reinforcing a shared ambition to expand access to advanced digital infrastructure, attract top talent, and foster cross-border collaboration in AI. As Abu Dhabi continues to invest in emerging technologies, the accelerator programme marks a significant milestone in its journey to becoming a global centre for AI. With the support of a global tech leader and world-class ecosystem, selected startups are poised to scale breakthrough innovations and shape the future of AI from Abu Dhabi to the world. Last year, Hub71, Abu Dhabi's global tech ecosystem, signed a strategic partnership with Google to accelerate startup growth in the UAE. This partnership introduces Google's startup programme, Google for Startups' to Abu Dhabi, creating unique opportunities for Hub71 startups to continue a fulfilling growth journey from Abu Dhabi. The collaboration between Google and Hub71 uniquely positions the Abu Dhabi tech ecosystem as a global hub, advancing innovation and growth opportunities for startups in the UAE and beyond. During a signing ceremony with representatives from Abu Dhabi Department of Economic Development, Mubadala Investment Company, Google and Hub71, it was announced that through this strategic collaboration, Google will launch a dedicated accelerator programme in 2025, selecting 25 high-potential startups from Hub71's ecosystem for a three-month programme focused on scalable growth strategies and optimising business models. Additionally, all startups within the Hub71 community will be eligible for substantial Google Cloud credits, with top-performing startups accessing up to US$300,000 in credits – the highest tier available globally. In addition, Google will offer tailored playbooks to support early-stage ventures within Hub71's community. Hub71 startups will benefit from Google's mentor network, connecting them with global industry leaders and experts. Google will also introduce Hub71 startups to its relevant investment divisions and its parent company, Alphabet, creating the potential for funding conversations centred on innovation and technology transformation. WAM
Al Etihad
15-05-2025
- Business
- Al Etihad
Google for Startups Accelerator welcomes 26 Hub71 ventures
15 May 2025 15:58 ABU DHABI (WAM)Hub71, Abu Dhabi's global tech ecosystem, and Google have launched the Google for Startups Accelerator, a joint programme to scale AI-focused startups within Hub71+ AI, the ecosystem's specialist vertical, and drive innovation across high-impact sectors from Abu Dhabi.A total of 26 startups from the Hub71 community have been selected to join the inaugural cohort, gaining access to a tailored three-month will gain access to Google's global network of mentors, engineers, product leaders and Google Cloud credits. Top-performing startups will be eligible for up to $300,000 in credits, the highest tier of support available through the programme will also be considered for Google Cloud Platform (GCP) ecosystem tier credit allocations, further expanding their technical startups, already based within the Hub71 community, have previously benefited from up to Dh500,000 in funding support, including Dh250,000 in in-kind support services, Dh250,000 in cash via a SAFE note and tailored mentorship. Now, through the Google for Startups Accelerator, they are gaining access to a powerful network of partners, technical experts and business development opportunities within the Hub71+ AI ecosystem, further strengthening their ability to scale globally from Abu Ali Alwan, Chief Executive Officer of Hub71, said, "Bringing the Google for Startups Accelerator to Abu Dhabi is a key milestone in advancing our position as a global centre for AI innovation. Together with Google, we are empowering founders to develop transformative technologies that address real-world challenges. Our ambition is for startups from Abu Dhabi to compete globally, lead with purpose, and create lasting impact."Doron Avni, Vice President of Government Affairs & Public Policy (GAPP) for Emerging Markets at Google, said, "Startups are at the forefront of solving critical challenges with AI, and our partnership with Hub71 is about equipping them with the resources to go further, faster. Through this accelerator, we are enabling Hub71 startups access to global expertise and infrastructure, so they can build AI solutions that make a real impact, both regionally and around the world."Alongside mentorship and technical resources, Google will provide early-stage founders with tailored playbooks and toolkits, as well as introductions to its investment arms and Alphabet's wider network, opening doors to new funding and commercial launch follows the strategic agreement signed in late 2024 to bring Google's startup programme to Abu Dhabi, reinforcing a shared ambition to expand access to advanced digital infrastructure, attract top talent, and foster cross-border collaboration in AI. As Abu Dhabi continues to invest in emerging technologies, the accelerator programme marks a significant milestone in its journey to becoming a global centre for AI. With the support of a global tech leader and world-class ecosystem, selected startups are poised to scale breakthrough innovations and shape the future of AI from Abu Dhabi to the world.
