Ken Griffin's Citadel Makes Strategic Shift: Sells Amazon, Boosts Palantir

Investment Portfolio Rebalancing

Citadel Advisors, the hedge fund managed by billionaire Ken Griffin, has made significant changes to its investment portfolio in Q3 2025. The firm sold 1.6 million shares of Amazon, while simultaneously purchasing 388,000 shares of Palantir Technologies. This move represents a strategic rebalancing of Citadel's portfolio, with Griffin taking profits from Amazon's long-standing position while increasing exposure to the rapidly growing Palantir.

Amazon: Profit-Taking Strategy

The sale of 1.6 million Amazon shares should not be interpreted as a loss of confidence in the tech giant. Amazon remains among the top 10 holdings in Citadel's portfolio, maintaining its position as a core investment. The decision to reduce Amazon's weighting is better understood as a profit-taking strategy following the stock's significant rally. Amazon continues to dominate three major sectors driven by artificial intelligence: e-commerce, cloud computing, and digital advertising.

Palantir: Emerging Opportunity

The purchase of 388,000 Palantir shares represents a significant investment in a company that has seen its stock price surge by 1,030% recently. Palantir's technology, particularly in data analytics and AI, appears to be attracting significant investor interest. This investment aligns with the growing trend of hedge funds increasing their exposure to technology companies with strong growth potential.

Market Implications

Griffin's investment decisions are closely watched by market participants due to Citadel's track record of successful investment strategies. The shift between Amazon and Palantir reflects broader market dynamics and investor sentiment towards technology stocks. While Amazon represents a mature tech giant with established market leadership, Palantir embodies the growth potential of newer technology companies leveraging AI and data analytics.