Michael Burry dumps Alibaba ahead of massive Alibaba share sale

Alibaba share sale sparks Michael Burry exit

Veteran value manager Michael Burry announced on Substack that he has liquidated his stake in Alibaba Group Holding Ltd. ahead of the company’s Alibaba share sale, deeming the stock “pricey” and requiring a 50% discount to regain interest. In a

“I planned to move most of it back after a month or two. No longer,” Burry wrote, adding the price would have to “fall by half for me to get interested again.”

The Chinese e‑commerce titan unveiled a HK$80 billion ($10.2 billion) follow‑on offering – the largest ever on the Hong Kong market – to bankroll its AI push. Reuters reported the deal was priced at HK$112.70, below the HK$123 closing price.

Quarterly results showed a ↓ 75% profit plunge as AI‑related capex surged, unsettling investors. The ADRs have slipped 18.6% YTD, while Hong Kong‑listed shares are down ↓ 13.9% for the year. Burry, famed for his profile in “The Big Short,” disclosed in April that he was building a position in Alibaba before pivoting to a “large” stake in rival JD.com Inc. He now expects the return on invested capital to keep eroding and refuses to endorse fresh equity issuances.

Editor’s note: A prior version misstated the timing of Burry’s JD.com purchase.