Ken Griffin's Q3 Portfolio Shift: Why This Billionaire Cut Amazon While Doubling Down on Tech Giants

The Unexpected Turnabout

In the third quarter of 2025, hedge fund titan Ken Griffin made a bold portfolio move that caught market watchers’ attention. While his Citadel Advisors increased stakes across most of the “Magnificent Seven” tech powerhouses, he took a contrarian stance on one member of the elite group. Griffin divested 2.1 million Amazon shares, slashing Citadel’s position by 39% — a decision that raises intriguing questions about the e-commerce giant’s near-term prospects.

The Buying Spree Across Tech Titans

Kenny Griffin’s quarterly filings reveal an aggressive accumulation strategy elsewhere. Microsoft emerged as Citadel’s crown jewel after Griffin approximately doubled the fund’s holdings with roughly 2 million additional shares. This repositioning pushed Nvidia into second place, despite the GPU maker also receiving substantial investment. Citadel acquired 1.73 million Nvidia shares, representing a 21.4% increase in the position.

The most eye-catching acquisition involved Meta Platforms. Griffin orchestrated a staggering 12,693% increase in Citadel’s Meta stake, elevating it to the third-largest holding. Apple experienced similar aggressive expansion, with Griffin more than doubling the fund’s position during the quarter. Meanwhile, Tesla and Alphabet received steady reinforcement, with purchases of 1.1 million and 1.25 million shares respectively.

Decoding the Amazon Decision

The rationale behind Griffin’s Amazon liquidation remains somewhat opaque. Conventional explanations fall short. The stock’s valuation didn’t trigger the sale — Amazon’s share price actually declined during parts of Q3, tracking movements similar to other Magnificent Seven constituents. The company’s earnings announcement delivered solid results, beating Wall Street expectations comfortably.

Rather than fundamental deterioration, Griffin’s divestment likely reflects portfolio rebalancing priorities. Citadel has maintained Amazon exposure for years, regularly adjusting positions without apparent strict discipline.

Amazon’s Enduring Investment Thesis

Despite Griffin’s trimmed position, the company retains compelling growth narratives for patient capital. Amazon controls roughly 1% of global retail markets, according to CEO Andy Jassy’s assessment — suggesting substantial expansion headroom ahead.

Advertising services provide an increasingly important revenue stream, accelerating 24% year-over-year in Q3, outpacing AWS’s expansion rate. The cloud division itself remains strategically positioned to capitalize on artificial intelligence advancement and agentic AI deployment, as Jassy emphasized during recent earnings commentary.

The company’s diversification continues expanding. Satellite internet capabilities launch in early 2026, while Zoox robotaxis operate in Las Vegas with Washington, D.C. entry imminent.

Final Verdict: Griffin’s Exit Doesn’t Dictate Your Moves

Ken Griffin’s Amazon reduction may signal tactical reallocation rather than fundamental conviction loss. For individual investors with longer time horizons, Amazon’s remaining growth catalysts and market penetration opportunities justify continued holding. The stock may have temporarily fallen from this particular billionaire’s favor, yet it maintains legitimate appeal for those building wealth systematically across market cycles.