Stanley Druckenmiller has loaded this stock with a 22% decline. You can buy it cheaper

Stanley Druckenmiller is a Wall Street legend, known for his macro trading skills. He managed money for George Soros and famously helped “break the Bank of England” in 1992 by shorting the British pound, netting more than $1 billion in profits. Later as head of Duquesne Capital Managementdelivered an average annual return of 30% for thirty years before closing the hedge fund in 2010. The most remarkable thing was that he never had a losing year in that thirty-year period.

Now 72, Druckenmiller runs Duquesne Family Office. He manages his personal fortune, estimated at $6.2 billion, focusing on high-conviction bets on stocks, bonds and commodities, without the pressure of outside investors.

In his latest 13F filing, Druckenmiller announced a number of new additions to his portfolio, with one of the largest purchases he made being Amazon (AMZN). He bought 437,070 shares worth about $96 million. The stock has since fallen sharply following its fourth-quarter earnings report and is now down 23% from its all-time high of $258.60 reached in November. Druckenmiller’s implied average entry is about $219 per share, meaning investors can grab AMZN for almost $199 today – a 9% discount to what this investment icon paid. This is why that dip offers opportunities.

The market’s overreaction to profits

Amazon’s fourth-quarter results saw an 11% after-hours decline, bringing losses to 14% overall for the week. Revenue was $213.4 billion, up 14% year over year and exceeded estimates by $2.1 billion, fueled by a 24% increase in AWS cloud sales to $35.6 billion. Still, earnings per share of $1.95 were missed by a penny, and the real shock was the forecast: CEO Andy Jassy signaled $200 billion in capital expenditures in 2026, a 60% increase from $125 billion in 2025, mainly for AI data centers and chips.
Investors worried about tight margins in the near term as heavy spending could hit profitability amid economic uncertainty. This knee-jerk sell-off ignored Amazon’s history of transformative investments that paid off, such as the early cloud pivot that turned AWS into a massive $100 billion-plus enterprise.

Why Amazon remains an attractive purchase

Despite the backlash, Amazon’s fundamentals suggest it’s a long-term winner. AWS – with a 31% market share – is once again accelerating demand for AI, with tools like Bedrock and custom chips driving multi-year contracts. The backlog was $150 billion, indicating a difficult turnover. E-commerce dominates with 37% of online sales in the US, supported by faster delivery and Prime benefits that bring 200 million subscribers. Ad revenue rose 20% to $15 billion in the fourth quarter, rivaling Google as brands flocked to its platform. International segments are becoming profitable, and businesses like healthcare through One Medical are providing diversification.
AMZN trades at 40 times forward earnings – below its historical average – and offers value amid expected 15% annual revenue growth through 2030, driven by cloud AI tailwinds.

In short

Blindly imitating Wall Street titans like Druckenmiller is risky; even he has missteps, and the 13F filings lag behind reality – he could have sold his position by now. Still, his AMZN bet is a smart clue to due diligence. Digging deeper reveals Amazon’s cloud, retail and advertising woes, plus its AI-powered benefits that far outweigh its investment concerns. At this discount, it’s a buy for patient investors looking for multi-year profits.