Investor Michael Burry said he has no plans to move his stake back to Alibaba Group Holding Ltd. (NYSE:BABA) from JD.com Inc. (NASDAQ:JD), after the Chinese e-commerce giant’s $10 billion share sale to fund its artificial intelligence ambitions sent its Hong Kong-listed shares tumbling nearly 10%.
A New Paradigm He Won’t ‘Bless’
“I moved my entire Alibaba position into JD not too long ago. This greatly increased my JD position. I planned to move most of it back after a month or two. No longer,” Burry said in a post on Substack. “Alibaba would have to fall by half for me to get interested again.”
On X he said the share sale marks “a new paradigm again for BABA,” and that its return on invested capital will “continue to fall” as a result.
Still, ‘The Big Short’ investor said Alibaba is “making serious inroads” in the low-cost AI model race in the U.S., calling it “impressive as a disruptive force” that he expects to continue.
