Alibaba Group Holding Limited (BABA): Michael Burry Opens New Position

We just covered the Michael Burry Stock Portfolio: Top 8 Stock Picks in 2026 and Alibaba Group Holding Limited (NYSE:BABA) ranks 5th on this list.

In early April, Michael Burry revealed to his followers on Substack that he had bought shares in Alibaba Group Holding Limited (NYSE:BABA), Burry said, ““I bought shares in JD.com and Alibaba today. JD is a significant add, and Alibaba is a new position, a little over 6%. JD is a bit more than that.” He added that the recent weakness in the shares provided “an attractive entry point.” Previously, Burry had bought a stake in the stock in the second quarter of 2025, per 13F filings for his hedge fund, Scion Asset Management. This position comprised 250,000 shares. However, filings for the third quarter of 2025 showed that he sold it off completely.

Can Alibaba (BABA) Sustain Its Rally as E-Commerce Competition Intensifies?

The Burry bet on Alibaba Group Holding Limited (NYSE:BABA) can be understood in context of the nature of investing. Burry is a value investor who looks for market mispricings where the downside is strictly limited, but the upside is asymmetric. Due to years of geopolitical tensions, regulatory crackdowns in China, and general international investor flight, Alibaba has traded at historically low valuation multiples. Burry views the company as one of the most compressed, mispriced mega-cap value trades in modern market history. By buying in when the stock experiences steep pullbacks, Burry capitalizes on an entry point where the business is valued at a deep discount relative to massive free cash flow generation.

While we acknowledge the risk and potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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