Michael Burry exits Alibaba stake, cites overvaluation and shifts to JD.com

Michael Burry, the Scion Capital Management founder known for his 2008 housing-market bets, announced on Substack that he has sold his Alibaba Group Holding Ltd. shares, describing the stock as overvalued and stating it would need to halve in price before he might consider re-entering. He also revealed a plan to build a large position in JD.com Inc., abandoning an earlier intention to hold the JD.com stake only briefly.

His remarks come after Alibaba disclosed a plan to raise roughly HK$80 billion through a share sale aimed at financing artificial-intelligence investments, marking the biggest follow-on offering recorded in Hong Kong. The Chinese e-commerce giant reported a 75% decline in profit for the quarter ending June, driven by increased AI-related capital spending, which has unsettled investors. Alibaba’s American Depositary Receipts have dropped 18.6% and its Hong Kong-listed shares are down 13.9% year-to-date. The offering was priced at HK$112.70 per share, below the market close of HK$123.