America’s biggest investor, Michael Burry has now revealed in a Substack post that he has sold his entire stake in Alibaba and moved the position into rival Chinese e-commerce company JD.com. According to a report by Business Insider, Burry who rose to prominence for predicting the 2008 housing crash, said he initially planned to move most of the investment back after a short period but has now decided against it. He added that Alibaba’s stock “would have to fall by half” before he would consider buying again.
Alibaba’s Share Sale and AI Push
Burry’s comments came as Alibaba announced plans to raise HK$80 billion ($10.2 billion) by selling 710 million new shares at a discount of 8.4% to their previous closing price. The company said proceeds would be used to expand its AI infrastructure and capabilities. While Burry acknowledged Alibaba was “making serious inroads” in the low-cost large language model race and called its technology “impressive,” he criticized the share issuance, saying, “I cannot bless share issuances.”Alibaba’s latest results showed revenue rising 9% in the June quarter, but net profit plunging 75% due to soaring capital expenditure, which jumped 75% to nearly $10 billion. The spending reflects a broader AI arms race among global tech giants including Microsoft, Amazon, Alphabet, and Meta. Despite its AI ambitions, Alibaba’s shares remain more than 60% below their 2020 peak, weighed down by Beijing’s tech crackdown, slowing economic growth, and fierce competition. Shares fell 9% in New York last week and dropped as much as 10% in Hong Kong after the new share sale was announced.
Michael Burry is not happy with with Oracle and Micron
Recently, Burry took aim at two major technology players Oracle and Micron Technology. According to a report by The Street, known for his contrarian bets, Burry argues that both companies are overexposed to the artificial intelligence infrastructure boom and weighed down by financial commitments that could backfire if demand slows.As per the report, Burry disclosed a short position against Oracle, highlighting its massive spending on AI infrastructure. The company has signed long-term leases and GPU capacity contracts worth hundreds of billions, far exceeding its current revenue base. Despite the strong operating cash flow, Oracle reported negative free cash flow due to surging capital expenditures. Burry warns that if AI demand falters, Oracle could be left with costly obligations and declining returns.Micron Technology is also in Burry’s crosshairs. He expanded his short bet against the chipmaker, arguing its recent rally is driven more by investor enthusiasm for AI than by solid fundamentals. Micron has historically struggled with cyclical downturns, and Burry believes its profitability remains vulnerable despite the current boom.
