Kenneth Griffin recently sold off more than 90% of his Amazon (NASDAQ:AMZN) shares through Citadel Advisors. The fund has also sold 14.3% of its Amazon call options while only selling 1.8% of its put options. It seems like Griffin is bearish on Amazon right now, but where is all of that extra capital going?

However, Griffin loaded up on Chipotle (NYSE:CMG). Some analysts believe the stock can go as high as $75, representing a potential 29% upside from current levels.

Amazon Stock Has Soared Lately

Amazon has rallied by more than 40% over the past year. When stocks gain that much value, some investors want to secure their profits instead of risking a downturn. The recent DeepSeek AI news has prompted many reliable AI stocks to shed significant value, demonstrating how quickly high fliers can lose their momentum.

Griffin likely feels that Amazon is due for a slower stretch moving forward. Shares have also jumped by more than 25% over the past six months. Revenue growth hasn’t kept pace with the recent stock gains, but net income has outpaced the stock’s 1-year gain.

Amazon can also be a leader in the artificial intelligence industry due to its Bedrock technology. Any weaknesses in AI bullishness can leave Amazon vulnerable. It remains to be seen how AI stocks will recover from the DeepSeek news. 

Chipotle Is in a Correction

Although Amazon has been soaring, Chipotle is down by more than 10% from its all-time high. Shares are only up by 21% over the past year. Those gains are slightly lower than Chipotle’s year-over-year revenue growth, but the company’s net income growth rate is higher. 

Furthermore, the company is still opening new restaurants and continues to gain market share. Chipotle offers a wide range of food options that cater to individuals who are looking for healthier fast food restaurants. 

Griffin and other investors believe that Chipotle can continue to appreciate from current levels. He purchased an additional 7.1 million shares, increasing his total position by 454.1%. Griffin has allocated 0.10% of his portfolio to the fast food restaurant chain.

The Verdict

Griffin’s shifting from Amazon to Chipotle is a de-risking strategy that still presents some upside. Amazon has enjoyed a strong rally that may make it ripe for a correction. Meanwhile, Chipotle has long-term growth opportunities and is in the middle of a correction. Many fast food restaurant stocks have been sluggish over the past few months, and they may start to get more attention as tech stock valuations continue to soar. 

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