In the third quarter, Ken Griffin sold Amazon stock and bought shares of Palantir, a stock that has surged 1,030% since January 2024. Amazon’s AI investments lead to strong sales growth and improved operating margin. Palantir’s AI platform drives growth, but the stock’s valuation is deemed unsustainable.

Citadel Advisors, run by Ken Griffin, outperformed the S&P 500 by 8% over three years. Griffin sold 1.6 million Amazon shares and bought 388,000 Palantir shares in Q3. Palantir stock skyrocketed 1,030% since Jan 2024, outpacing Nvidia’s 281% increase.

Amazon’s AI investments pay off with 13% revenue growth to $180 billion and a 60 basis point expansion in operating margin. Operating income rose 23% to $21.7 billion. Griffin’s sale of Amazon shares could be a profit-taking move, not a lack of confidence. Amazon remains a top 10 holding for Citadel Advisors.

Palantir’s ontology-based AI platform drives growth with revenue up 63% to $1.1 billion in Q3. However, the stock trades at an exorbitant 119 times sales, making it the S&P 500’s most expensive stock. Palantir’s stock price outpaces revenue growth, raising concerns about a potential crash.

Before buying Palantir stock, consider that it wasn’t among the top 10 stocks identified by the Motley Fool Stock Advisor team for potential monster returns. The list has historically outperformed the S&P 500 by 790% and includes stocks like Netflix and Nvidia. Evaluate investment options carefully before making a decision.

Read more at Nasdaq: Billionaire Ken Griffin Sells Amazon Stock and Buys an AI Stock Up 1,030% Since 2024 (Hint: Not Nvidia)