Is Amazon 1 of the best stocks to buy right now? Here’s what the smart money was doing
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It’s always interesting to see what stocks some of the world’s best investors have decided to buy recently. And one stock in particular stands out from the latest Q4 2025 data.
The stock in question is Amazon (NASDAQ:AMZN). There are always different opinions in the stock market, but investors seem to have very different opinions about what to do next.
Buyers and sellers
In the last three months of 2025, Baupost Group – led by Seth Klarman – was buying Amazon shares. And that’s surprising given the company’s strategy and positioning.
Baupost is an investment firm with a long-term value strategy. And Klarman’s book on value investing is a dense study that takes the importance of valuation very seriously.
Amazon is rarely thought of as a classic stock, which makes Baupost’s move attractive. But on the other side of the equation is Warren Buffett Berkshire Hathaway.
In Buffett’s last term as CEO, Berkshire slashed more than 90% of its stake in the online marketplace and cloud computing firm. And time will tell if that was a good move.
It’s rare to find value investors with opposing views. The stock is down 12% since the end of the reporting period, but what should investors expect from here?
It’s all about AI
Artificial intelligence (AI) is creating a dynamic Amazon. Unusually, it is a risk and an opportunity for the company at the same time.
The dangers are twofold. Another potential challenge to its marketplace is if users turn to ChatGPT or Gemini to start shopping searches, instead of Amazon’s online marketplace.
Amazon, however, can offer customers something that competitors can’t. Its scale means it can offer faster delivery and better facilitation where consumers can find the things they need in one place.
Another is that the company will spend $200bn this year, most of which will go towards data centres. If demand for AI comes in weaker than expected, this could lead to significant losses.
On the other hand, if things go well, getting a big return on an investment of that size can be a unique opportunity. And the decline in stocks seems to reduce this possibility.
It is also worth noting that Amazon is a major investor in Anthropic – a firm that has been introducing AI plugins for agents. So it must also benefit from the success of AI in another big way.
What I do
Klarman’s buying while Buffett is selling shows why investors should think for themselves when it comes to buying stocks. Even the best in the business don’t always agree.
As for my portfolio, I have a foot in both fields. I wasn’t buying the stock in Q4, but the price drop means I’ve started to add to my stake in the company.
In the case of Berkshire, there is a possibility that the company may buy again in the last six weeks. But it will be another three months before investors find out about the next release.
