Cathie Wood and Warren Buffett Each Own This Artificial Intelligence (AI) Stock. 1 Wall Street Analyst Thinks It Could Surge by 26%.

Two of the most closely followed investors on Wall Street are Warren Buffett and Cathie Wood. But the two don’t share much in common.

Buffett has made billions sticking to a relatively simple investing strategy — seeking companies that generate strong, consistent cash flow and build best-in-breed brands. Much of the portfolio of Buffett’s Berkshire Hathaway is concentrated in sectors like consumer goods, financial services, telecommunications, and energy. On the other hand, Wood’s Ark Invest portfolio is comprised of growth stocks in emerging areas such as artificial intelligence (AI), genomics, and crypto.

Despite very different approaches to investing, Wood and Buffett both own “Magnificent Seven” stock Amazon (NASDAQ: AMZN). While the company is best-known for its online store, Amazon is also home to a leading cloud computing operation, and is even beginning to make inroads in streaming, entertainment, and advertising.

With the stock up over 70% in the last year, one analyst on Wall Street sees much more room for growth. Mark Mahaney of Evercore ISI has a price target of $220 for Amazon stock, representing about 26% upside from Thursday’s closing price.

Let’s dig into Amazon’s business and get an understanding of how the company has been able to attract two of the most prominent investors on Wall Street, and why there could be a lot more room for it to run.

How much Amazon stock do Wood and Buffett own?

While Wood’s and Buffett’s portfolios both hold Amazon stock, it’s important for investors to understand that it is a relatively small position for both investors.

Buffett owns about $1.5 billion of Amazon stock, which represents only about 0.44% of Berkshire’s total portfolio. Similarly, Wood’s position in Amazon is in only one of her exchange-traded funds, and the company represents just 0.06% of the fund.

I wouldn’t get caught up in the details of Amazon’s weighting relative to other holdings for either investor. Wood likely views Amazon as a hedge to some of her…