{
  "id": 5856583,
  "title": "Michael Burry Says He Sold Alibaba, Calling It Pricey Before $10.2 Billion Share Sale",
  "url": "https://urgent.news/2026/09/05/michael-burry-says-he-sold-alibaba-calling-it-pricey-before-10-2",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-05T22:45:25.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/michael-burry-says-sold-alibaba-224525107.html"
  },
  "original_language": "en",
  "account": "Michael Burry, the investor known for his role in The Big Short, disclosed on August 23 that he had sold his entire stake in Alibaba Group Holding Limited, deeming the company's shares as overvalued. In a Substack article, Burry explained that he had initially planned to reinvest the majority of his investment within a month or two, but revised his decision. He stated that the stock's price would need to drop by half before he would consider investing again. Alibaba's recent share placement of HK$80 billion, or $10.2 billion, to fund its AI initiatives prompted Burry to abandon his plan to reinvest in the stock. Burry objected to the dilution from the financing and expressed concerns that Alibaba's return on invested capital would continue to decline. The company's decision to issue new shares instead of relying on organic growth has altered Burry's willingness to buy back the stock. JD.com, Inc., Alibaba's main domestic e-commerce competitor, has seen modest growth in hedge fund ownership during the same period. Burry's skepticism towards Alibaba's valuation and his swift rotation of investments highlight the importance of closely monitoring his moves for investors. While Alibaba's share issuance may not be inherently a red flag, the potential dilution and pressure on per-share economics warrant caution. JD.com's value case remains strong, based on its earnings potential, shareholder distributions, and logistics network. Investors should focus on the company's fundamentals when assessing its investment potential.",
  "summary": null,
  "key_points": [
    "Michael Burry sold his entire stake in Alibaba, deeming shares overvalued.",
    "Alibaba's HK$80 billion share sale to fund AI initiatives prompted Burry's decision.",
    "Burry expressed concerns over dilution and declining return on invested capital."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}