INDYFINANCE
2026-08-24 UTC
 
BREAKING STORYBEARISH

Alibaba Shares Slide as Burry Exits Stake and $10.2 Billion Share Sale Lands

Michael Burry's Scion Asset Management dropped Alibaba for JD.com just as Alibaba priced a massive stock placement to fund AI spending.

AI & SemiconductorsEquitiesAsiaBABAJD
Executive takeaway

Alibaba shares fell in Hong Kong after Michael Burry disclosed he had exited his Alibaba stake in favor of JD.com, compounding pressure from a $10.2 billion share placement the company launched to fund AI investment.

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Alibaba slides as JD.com holds steadier. Alibaba shares dropped after the $10.2 billion placement and Burry's exit, while JD.com—the stock he rotated into—shows how the market is pricing the two rivals differently.

Alibaba slides as JD.com holds steadier

Alibaba shares dropped after the $10.2 billion placement and Burry's exit, while JD.com—the stock he rotated into—shows how the market is pricing the two rivals differently.

Live prices for BABA and JD, contextualizing the wire reports on Burry's stake shift and Alibaba's share placement.

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<figure><a href="https://www.indy.finance/news/alibaba-shares-slide-as-burry-exits-stake-and-10-2-billion-share-sale-lands"><img src="https://www.indy.finance/news/alibaba-shares-slide-as-burry-exits-stake-and-10-2-billion-share-sale-lands/graphic.svg" alt="Alibaba slides as JD.com holds steadier" width="1200" height="675"></a><figcaption>Alibaba slides as JD.com holds steadier — <a href="https://www.indy.finance/news/alibaba-shares-slide-as-burry-exits-stake-and-10-2-billion-share-sale-lands">Indy Finance</a></figcaption></figure>
Alibaba stock slumped in Hong Kong trading after two pieces of news hit within a short span: investor Michael Burry disclosed he had sold out of his Alibaba position and moved into rival JD.com, and Alibaba separately priced a $10.2 billion share placement to help pay for its AI buildout. The share sale dilutes existing holders and signals Alibaba needs fresh capital to keep pace with AI infrastructure spending, a costly race across Chinese and US tech firms alike. Burry's move away from Alibaba toward JD.com suggests at least one prominent value-oriented investor sees better risk-reward elsewhere in Chinese e-commerce. What remains unresolved is whether the selloff reflects a one-time adjustment to the new share supply or a broader reassessment of Alibaba's AI spending returns. The stock's next moves will depend on how the market prices the dilution against the AI investment thesis.
What would change this view

A rebound in Alibaba shares back above pre-placement levels within the next few sessions would suggest the market has already absorbed the dilution rather than reassessing the AI spending thesis.

Wire sources cited

Produced automatically by the INDY NEWS Desk from the public wire sources cited above, and checked against them before publication. Market commentary, not investment advice.