Appaloosa's Amazon position June 2026: 1.2 billion dollars

Appaloosa Management added to its Amazon stake in the second quarter of 2026, lifting the position by 16% to land at $1.2 billion. The move makes Amazon the single largest holding in David Tepper's fund, consuming 15.9% of a $7.5 billion portfolio spread across 25 positions. This is the clearest signal from the filing: when capital is tight and conviction matters, Appaloosa went bigger on Amazon.

!Appaloosa's top 10 holdings, June 2026. Amazon is now the largest position, followed by Micron and TSMC. The top 10 account for 81.6% of the total portfolio.

What Amazon business generates the revenue

Amazon operates three primary revenue engines. Retail and subscription services (including Prime membership) generate the bulk of consumer sales. Amazon Web Services, or AWS, is the cloud computing division that runs a significant portion of the internet's infrastructure. Advertising, increasingly important, comes from product recommendations and sponsored listings on the retail platform. For the trailing twelve months, the company's revenue sat above $570 billion, though operating margins vary sharply by segment: retail runs thin, AWS produces substantial operating profit, and advertising scales efficiently.

How big is this position really

At $1.2 billion across a $7.5 billion fund, Amazon represents a concentrated bet. Only Micron rivals it in absolute dollars. The 15.9% weight means a 10% move in Amazon stock swings the portfolio by roughly 1.6%, a material daily driver. For context, the top 10 holdings represent 81.6% of Appaloosa's book, so conviction in mega-cap names dominates the strategy. A fund manager does not add 16% to a $1 billion position without viewing it as a core conviction, not a passing trade.

Where Amazon sits relative to SteadyShares' fair value

SteadyShares rates Amazon at 68 out of 100, placing it in the middle band of conviction. The stock trades at a 24% discount to our fair value estimate. That gap suggests either that the market is pricing in genuine risks Appaloosa is willing to accept, or that Appaloosa sees asymmetric upside the broader market is not yet pricing. Tepper's 16% addition to the position during a period when he trimmed Micron by 41% and exited five other names entirely indicates a preference for Amazon's risk-reward over competitors in the same mega-cap technology tier.

Amazon's scale in cloud computing and the structural tailwinds in advertising growth remain core to any bull thesis. The company's ability to cross-subsidize lower-margin retail with high-margin cloud and advertising services creates a financial moat that few competitors can match. Yet at a 24% discount to fair value, the stock is not a screaming bargain; Appaloosa is betting on a longer accumulation curve, not a sudden rerating.

The bottom line

Appaloosa is putting real money behind Amazon as its largest position, not hedge it or test it. The 16% addition, the $1.2 billion size, and the context of simultaneous trimming elsewhere all point to conviction. Whether that conviction is justified depends on whether AWS and advertising growth can sustain the company's competitive advantage against rivals like Microsoft and Google.

You can track Appaloosa's full portfolio activity and compare it to other institutional managers on SteadyShares.

This is educational information, not financial advice.