America’s biggest investor Michael Burry dumps Alibaba, buys rival in China
Investor Michael Burry has shifted his portfolio by selling his stake in Alibaba to invest in JD.com. Burry expressed skepticism regarding Alibaba's recent share issuance and its heavy capital expenditure on AI infrastructure.
Why it matters
Reflects broader market concerns about the profitability of the AI arms race and the volatility of Chinese tech stocks.
America’s biggest investor, Michael Burry has now revealed in a Substack post that he has sold his entire stake in Alibaba and moved the position into rival Chinese e-commerce company JD.com. According to a report by Business Insider, Burry who rose to prominence for predicting the 2008 housing crash, said he initially planned to move most of the investment back after a short period but has now decided against it. He added that Alibaba’s stock “would have to fall by half” before he would consider buying again.Alibaba’s Share Sale and AI PushBurry’s comments came as Alibaba announced plans to raise HK$80 billion ($10.2 billion) by selling 710 million new shares at a discount of 8.4% to their previous closing price. The company said proceeds would be used to expand its AI infrastructure and capabilities.
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