Amazon (NASDAQ:AMZN) is among the top holdings of three famous billionaire investors as of the end of the second quarter, according to the latest 13F filings. Stanley Druckenmiller's Duquesne Family Office raised its Amazon stake over 1,000% in the second quarter. David Tepper's Appaloosa Management made Amazon its single largest position at $1.19 billion, up 33% in value.
Peter Thiel's Thiel Macro is in the news after posting its Q2 holdings. Amazon is the fund's largest position at $118 million, or 28% of its total portfolio. Amazon's third-quarter guidance points to revenue growth of up to 12% year over year.
Revenue growth in the second quarter was 20% year over year, accelerating from 17% in the first quarter. AWS's backlog reached $496 billion in the second quarter, up from $364 billion in the first quarter. That backlog is growing at a triple-digit percentage year over year.
AWS operating income surged 64% year over year. Management said Amazon still won't have enough capacity to meet demand this year or in 2027. Executives are now talking about AWS becoming a trillion-dollar-a-year business one day.
Bulls point to the fact that over 60% to 70% of global IT spending still happens on-premises as the long-term opportunity as that shifts to the cloud. AMZN's trailing adjusted P/E is 21.13, versus a sector median of 15.45 — roughly 37% above the group average. Forward non-GAAP P/E is 21.08, about 30% above the sector median of 16.16.
But both are far below Amazon's own five-year average: trailing P/E has come down from 49.77, and forward P/E from 160.41. The stock is cheaper than its own history even as it trades rich against peers. Bears say Amazon not being able to meet demand is a negative.
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