Billionaires Are Quietly Loading Up on Amazon While It Trades Like a Value Stock
2026-08-26 15:30
•Adam Spatacco •The Motley Fool
••••••• • Axe Cap view
Billionaires Are Quietly Loading Up on Amazon Despite Its Price
Top hedge fund managers see value in Amazon’s cash flow and growth potential despite a high P/E ratio.
Amazon’s high P/E can scare some investors, but cash flow paints a different picture. Recent buying by billionaires like Druckenmiller and Klarman signals confidence in its future beyond just retail. AWS remains the crown jewel, driving solid earnings and cash. Plus, Amazon’s push into AI, robotics, and custom silicon chips points to fresh growth avenues that markets may not fully price yet. For South African investors, Amazon itself isn't listed, but the USD/ZAR is a useful lens. Strong demand for dollars to buy quality tech stocks can support the rand. However, if US tech stumbles or interest rates spike, that could reverse quickly. Given the rand’s sensitivity to global risk, local exposure should be carefully managed. Watch how Amazon’s results impact USD strength and the rand. this is just our opinion and not financial advice
I’d watch USD/ZAR closely and hold off on large SA tech bets for now, but keep an eye on Prosus and Naspers as indirect ways to play global tech through South African stocks.
- USD/ZAR
- Prosus
- Naspers
- US tech sell-off
- Rising US interest rates
- Rand volatility
6/10
Several prominent hedge fund managers including Stanley Druckenmiller, Peter Thiel, Seth Klarman, and David Tepper recently purchased Amazon stock during Q2. The article argues that while Amazon appears expensive on traditional P/E metrics, its enterprise value-to-operating cash flow ratio of 17 is well below its 10-year average of 26, suggesting the stock trades at a discount. The company's diversified ecosystem spanning e-commerce, AWS cloud services, advertising, and emerging AI initiatives positions it as an attractive long-term investment with multiple growth catalysts.
Our take is based on reporting first published by The Motley Fool.