Why Michael Burry Is Doubling Down on JD.com Stock

Famed investor Michael Burry has shifted his funds from Chinese e-commerce titan Alibaba Group to JD.com, citing Alibaba's high valuation. Burry believes Alibaba's capital raise for AI and infrastructure is unnecessary and that JD.com's performance is showing improvement. JD.com has secured a Hong Kong pilot development area and plans to invest $10 billion in robotics by 2028.

While JD.com's revenue has dropped 2.9% year-over-year, its bottom line has surged, driven by strong performance in its JD Retail segment. Analysts have a largely positive outlook on JD.com, with a consensus "Strong Buy" rating and an expected price target 40% higher than the current level.