Burry says he sold Alibaba, calling it pricey before share sale

Michael Burry said he exited his Alibaba position, calling the Chinese tech stock “pricey” and planning to rotate into rival JD.com. In a Substack post, the Scion Capital Management founder said he expected to move most of the stake back after a month or two, but no longer plans to do so. He added that Alibaba would need to fall by half for him to reconsider. Burry’s comments followed Alibaba’s announcement of a plan to raise about HK$80 billion (US$10.2 billion) via a share sale to fund AI investments, described as Hong Kong’s largest follow-on offering on record. Alibaba reported a 75% profit decline for the June-ended quarter as it increased AI-related spending. Its ADRs are down 18.6% for the year and fell 8.6% on Friday; Hong Kong shares are down 13.9% year to date.