Alibaba's share issuances are "impressive as a disruptive force" but bad for returns
Michael Burry has exited his Alibaba position, moving the full stake into JD, and says BABA would need to fall 50% before he'd consider returning. He acknowledges Alibaba is a genuine disruptive force in the low-cost LLM market but will …
- 01He remains bullish on JD and Meituan, expecting China's delivery wars to resolve toward higher margins and improved narratives for both names.
- 02Burry also confirmed he views JD LEAPS favorably and remains skeptical of PDD.
Michael Burry has exited his Alibaba position, moving the full stake into JD, and says BABA would need to fall 50% before he'd consider returning. He acknowledges Alibaba is a genuine disruptive force in the low-cost LLM market but will not support the company's $10 billion Hong Kong share issuance, arguing it signals a new capital-heavy paradigm that will continue to compress ROIC. He remains bullish on JD and Meituan, expecting China's delivery wars to resolve toward higher margins and improved narratives for both names. Burry also confirmed he views JD LEAPS favorably and remains skeptical of PDD.
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