Billionaire Dan Loeb Slashed Third Point's Stake in Amazon and Piled Into This Consumer-Facing Stock That's Gained 3,750% Since Its IPO

Few quarterly data releases are more valuable to investors than the filing of Form 13Fs with the Securities and Exchange Commission. A 13F allows investors to track which stocks Wall Street's prominent money managers bought and sold in the latest quarter (in this instance, the fourth quarter).

Billionaire investor Dan Loeb of Third Point certainly fits the bill of a fund manager whose trading activity is closely monitored by investors. According to Third Point's 13F detailing fourth-quarter trades, Loeb slashed his stake in "Magnificent Seven" member Amazon (NASDAQ: AMZN) and loaded up on more than 4.7 million shares of a consumer-facing favorite that's skyrocketed over 3,700% since its initial public offering (IPO).

Image source: Getty Images.

Billionaire Dan Loeb sent almost a quarter of his fund's Amazon shares packing

Third Point's billionaire boss is a relatively active investor. During the fourth quarter, he exited 13 stocks and reduced his fund's stake in 14 others, including dual-industry leader Amazon. The 645,000 shares sold cut Third Point's position in the company by 23%. Moreover, it marks a 57% reduction since the midpoint of 2024.

Profit-taking is one reason for this selling, but it may not be the only one. On average, Loeb has held his top-10 holdings by market cap for just shy of one year, signaling that he's not afraid to cash in his chips when the opportunity presents itself. With Amazon's shares hitting an all-time high of more than $250 during the fourth quarter, Loeb clearly saw an opportunity to take some profit.

But Loeb may also be concerned about tech stock valuations. While he's signaled that companies such as Amazon are well-positioned for success amid the artificial intelligence (AI) boom, he views the tech sector and select crowded tech trades as being ripe for short-sellers.

There's no question that the stock market is historically pricey and has been aided by the rise of AI. If history rhymes and premium stock valuations prove unsustainable, market leaders, such as the Magnificent Seven, may be among the hardest hit.

Image source: Chipotle.

Third Point's chief investor loaded up on a consumer favorite, Chipotle

On the other hand, Dan Loeb added to 11 existing holdings and opened 11 new positions during the December-ended quarter. This includes a newly opened 4,725,000-share stake in fast-casual restaurant chain Chipotle Mexican Grill (NYSE: CMG).

Even though shares of Chipotle have fallen about 50% from their all-time high, they're still up 3,750% since its January 2006 IPO. Gains of this magnitude don't occur by accident. Rather, they reflect well-defined competitive advantages.

Chipotle's commitment to using locally sourced vegetables (when possible) and responsibly raised meats has resonated with a younger audience. Furthermore, the addition of mobile order-devoted drive-thru lanes ("Chipotlanes") helped the company excel during the COVID-19 pandemic. Historically, outsize sales growth and strong pricing power have been the norm.

However, Loeb's newest position isn't a slam-dunk, despite what its track record shows. Negative comparable-restaurant sales in 2025 suggest inflationary pressures are taking their toll.

Although Chipotle Mexican Grill's forward price-to-earnings ratio of 25 is far more palatable than it was two years ago, it may still be a tough pill to swallow for value-focused investors until organic growth returns.

Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Chipotle Mexican Grill. The Motley Fool recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.