Pershing Square's Q3 Portfolio: Amazon Stake, Alphabet Boost, Canadian Pacific Dissolution

Pershing Square reports a stake in Amazon, dissolves its stake in Canadian Pacific, and raises its stake in Alphabet. Amazon is a world leader in online product distribution, operating a marketplace for individuals and companies to buy and sell goods and services. Net sales are distributed geographically, with the US accounting for 69.3% of sales.

Pershing Square Capital Management, the hedge fund led by billionaire Bill Ackman, has made notable moves in its investment portfolio. The firm has recently reported a stake in Amazon and dissolved its stake in Canadian Pacific, while also raising its stake in Alphabet. These moves reflect strategic shifts aimed at leveraging the strengths of these companies.

Amazon

Amazon, a global leader in online product distribution, continues to expand its reach and services. The company's recent move to offer same-day grocery delivery to all customers in over 3,500 U.S. cities has been praised by analysts [1]. This expansion, previously limited to Prime members, now includes lower fees for Prime subscribers and a flat fee for non-Prime customers. Analysts see this as a significant opportunity in the $90 billion online grocery market [1].

Amazon's move to expand its grocery delivery service is expected to boost shopping frequency, improve customer retention, and compete more effectively with traditional retailers like Walmart and Target [1]. The company's strong logistical network and ability to deliver fresh groceries at scale position it as a formidable player in the market.

Alphabet

Alphabet, the parent company of Google, has seen Pershing Square increase its stake in the company. This move comes after the hedge fund previously held shares in Google but has since shifted its focus to other investments. The exact reasons behind Pershing Square's decision to increase its stake in Alphabet are not publicly disclosed, but the move suggests confidence in the company's long-term prospects.

Alphabet's diverse range of businesses, including search, advertising, and cloud computing, make it a strong investment choice. The company's dominance in search and advertising, along with its growing cloud computing business, provides a robust foundation for future growth.

Canadian Pacific

Pershing Square's decision to dissolve its stake in Canadian Pacific reflects a strategic realignment of the hedge fund's portfolio. Canadian Pacific is a major railway company that has been facing challenges in recent years, including a decline in freight volumes and increased competition. Pershing Square's exit from the company may indicate a reassessment of the risks and opportunities in the railway sector.

Conclusion

Pershing Square's strategic moves in Amazon and Alphabet reflect a focus on leveraging the strengths of established companies with strong market positions. The hedge fund's decision to dissolve its stake in Canadian Pacific suggests a reassessment of the risks and opportunities in the railway sector. As investors, it is essential to stay informed about these strategic shifts and their potential impacts on the companies and the broader market.

References

[1] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/08/47130312/amazons-grocery-delivery-expansion-seen-as-game-changer-in-90-billion-online-market-opportunity
[2] https://www.aol.com/billionaire-bill-ackman-loading-uber-094200632.html?utm_content=AOLcom/magazine/Business&utm_source=flipboard
[3] https://seekingalpha.com/news/4482586/howard-hughes-raises-2025-cash-flow-guidance-to-410m-midpoint-as-pershing-square-led-strategy