economy
Burry says he sold Alibaba, calling it pricey before share sale
Michael Burry criticized Alibaba Group Holding Ltd. shares as overvalued and disclosed that he recently exited his position in the Chinese tech giant in order to build a “large” position in rival online retailer JD.com Inc.
TL;DR
- Michael Burry has exited his position in Alibaba Group Holding Ltd.
- He believes Alibaba shares are overvalued and would need to fall by half to regain his interest.
- Burry is building a "large" position in rival online retailer JD.com Inc.
- He criticized Alibaba's plan to raise HK$80 billion via a share sale to fund AI investments, stating he cannot "bless share issuances."
- Alibaba reported a 75% profit decline for the quarter ended in June due to increased AI capital spending.
- Alibaba's shares have seen significant declines for the year in both Hong Kong and the US.