Greg Abel Leads Berkshire Hathaway with Strategic Shifts and Amazon Exit

Berkshire Hathaway is under new leadership with Greg Abel at the helm, initiating a significant reshuffling of the company’s stock portfolio and acquiring new businesses, adding to its approximately 200 subsidiaries. The company recently completed the $6.8 billion acquisition of homebuilder Taylor Morrison, anticipating a housing market rebound.

Key Actions and Portfolio Changes

Abel has also divested from 16 of Berkshire’s smallest stock holdings, including 2.3 million shares of Amazon (AMZN), which were previously purchased in 2019 before the COVID-19 pandemic. Former CEO Warren Buffett noted his initial underestimation of Amazon’s potential.

Amazon’s Continued Growth Despite Berkshire’s Sale

Despite the sale, Amazon continues to demonstrate robust growth, with revenue increasing 20% year-over-year in the second quarter, driven by a 37% surge in AWS sales. Operating income rose 63%, accounting for over 60% of total income. AWS sales growth also reached 37% compared to 28% in Q1 2026 and 24% in Q4 2025.

AWS Dominance and Future Outlook

The AWS cloud business is fueled by increasing interest in AI and its development platforms, including Bedrock and an AI chip business with a $25 billion run rate. With an overall $169 billion run rate, AWS could be the 24th-largest business in the U.S. if it were a standalone company. Amazon anticipates continued high demand, projecting a need for $220 billion in 2026 and “striking” demand into 2028, with AWS potentially reaching a $1 trillion market size.

Amazon Stock Performance

Amazon’s stock price jumped 26% following the report. As of today, the stock is trading at $277.42, down $2.32.