Amazon (AMZN) Stock: Billionaire Druckenmiller Returns With Major Buy

TLDR

• Stanley Druckenmiller repurchased Amazon stock in Q3, allocating over 2% of his portfolio to the Magnificent 7 company
• AWS revenue accelerated to 20% year-over-year growth, reaching $33 billion last quarter
• North America e-commerce grew 11% while international sales increased 10% in constant currency
• Operating margin hit a record 12% when excluding one-time charges, showing strong profit expansion
• Partnership with AI firm Anthropic driving cloud computing momentum as client projects $9 billion in ARR soon

Stanley Druckenmiller made waves in Q3 by repurchasing Amazon stock through his Duquesne Family Office. The veteran investor allocated more than 2% of his portfolio to the e-commerce and cloud computing giant after being a previous shareholder for years.

Amazon.com, Inc., AMZN

The move comes as Amazon shows renewed strength in its cloud business. AWS revenue grew 20% year-over-year to $33 billion last quarter. This marks an acceleration from the prior quarter’s 17.5% growth rate.

The AWS rebound stems largely from its relationship with Anthropic. The AI startup uses AWS for its cloud computing needs and is experiencing explosive growth. Anthropic started 2025 with $1 billion in annual recurring revenue and expects to reach $9 billion soon.

Some investors had worried Amazon was falling behind Microsoft Azure and Google Cloud in the AI race. The recent AWS acceleration suggests those concerns may be overblown. The company continues expanding infrastructure to support AI workloads.

E-Commerce Business Maintains Steady Growth

Amazon’s retail operations posted solid numbers last quarter. North America revenue reached $106 billion, up 11% year-over-year. International sales hit $40 billion with 10% growth in constant currency.

The company keeps investing in faster delivery options. New initiatives include rapid grocery delivery and robotic warehouses. Generative AI tools are being rolled out for both shoppers and sellers on the platform.

Amazon is also developing several future-focused projects. The Zoox autonomous driving division continues its work. Alexa smart devices remain in development. Project Kuiper aims to provide satellite internet service.

These experimental divisions currently burn cash with minimal revenue. However, they represent potential long-term growth drivers for patient shareholders.

Profit Margins Reaching New Heights

The real story might be Amazon’s improving profitability. The company over-hired during the pandemic boom from 2020 to 2022. This led to compressed profit margins as growth slowed.

Management has since implemented consistent layoffs. The workforce reductions are creating a leaner, more efficient operation. The strategy is starting to pay off in the numbers.

Last quarter’s stated operating margin came in under 10%. That figure declined from the same period last year. But the number included one-time charges for fines and layoff costs.

Excluding those expenses, Amazon’s operating margin hit a record 12% in Q3. This represents continued improvement in profitability. The company generated just under $80 billion in EBIT over the trailing twelve months.

Analysts expect margin expansion to continue as restructuring costs fade. Combined with steady revenue growth in both cloud and retail, profit growth should accelerate. The company reported these results as it continues optimizing operations across all business segments.

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