Michael Burry Just Abandoned Alibaba Stock. How to Play BABA Stock from Here.

Alibaba (BABA) faced renewed market pressure after Michael Burry exited his position and shifted money toward Chinese rival JD.com (JD). Burry said he will not buy Alibaba again unless the stock falls roughly half, fueling fresh debate over valuation, dilution risk, and the company’s aggressive artificial intelligence spending. BABA closed at $119.44 on Tuesday following an 8.5% drop after Alibaba’s latest financing announcement. The shares are down about 18% in 2026 and remain well below the $192.67 52-week high. On Aug. 24, Alibaba announced an HK$80 billion ($10.2 billion) share placement—710 million new shares priced at an 8.4% discount—raising dilution concerns. Financial results for the fiscal first quarter ended June showed revenue up 9% year-over-year to 268.95 billion yuan, while net income fell about 75% to 10.54 billion yuan as capital expenditures rose 75% to 67.68 billion yuan.