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Updated · Bloomberg · Aug 24Michael Burry Exits Alibaba, Says Shares Must Halve Before He Returns
3 articles · Updated · Bloomberg · Aug 24Summary
- Michael Burry said he recently sold his Alibaba stake and is now building a “large” position in rival JD.com.
- Alibaba would need to “fall by half” before he would be interested again, Burry wrote on Substack, calling the stock overvalued and too pricey.
- Burry said he had planned to move most of the money back into Alibaba after a month or two, but has since abandoned that idea.
- The shift marks a sharp preference for JD.com over Alibaba as Burry reassesses value in Chinese e-commerce stocks.
Insights
What hidden metric drove Michael Burry to abruptly dump Alibaba for its fiercest rival? Will Alibaba's massive AI infrastructure gamble destroy shareholder wealth before it pays off? Could Burry's stark warning on AI capital expenditure signal a looming tech market correction?