INDYFINANCE
2026-10-08 UTC
 
BREAKING STORYBEARISH

Michael Burry Says Alibaba Must Fall Another 50% After Exiting Position

The investor who called the 2008 housing crash dropped Alibaba over what he called a broken management pledge, arguing the stock, already down 40% on AI pressure, needs to halve again.

AI & SemiconductorsBABA
Executive takeaway

Michael Burry exited his Alibaba position, saying the stock is down 40% on AI pressure and still needs to fall by half, citing broken management commitments.

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Alibaba's AI-driven slide before Burry's exit. Alibaba shares have already dropped sharply on AI competition worries, the decline Burry cites as insufficient; he argues the stock must halve again from here.

Alibaba's AI-driven slide before Burry's exit

Alibaba shares have already dropped sharply on AI competition worries, the decline Burry cites as insufficient; he argues the stock must halve again from here.

Live BABA price series; decline context from Yahoo Finance reporting on Michael Burry's exit and AI pressure.

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<figure><a href="https://www.indy.finance/news/michael-burry-says-alibaba-must-fall-another-50-after-exiting-position"><img src="https://www.indy.finance/news/michael-burry-says-alibaba-must-fall-another-50-after-exiting-position/graphic.svg" alt="Alibaba's AI-driven slide before Burry's exit" width="1200" height="675"></a><figcaption>Alibaba's AI-driven slide before Burry's exit — <a href="https://www.indy.finance/news/michael-burry-says-alibaba-must-fall-another-50-after-exiting-position">Indy Finance</a></figcaption></figure>
Michael Burry has abandoned his stake in Alibaba, according to Yahoo Finance, citing what he described as a broken management pledge. Burry, known for his early call on the 2008 mortgage crisis, said the stock's roughly 40% decline tied to AI competition pressure has not gone far enough. Burry's specific claim is that Alibaba needs to fall by half again from current levels before he would view it as fairly priced. That is a notably aggressive target and puts him at odds with investors treating the AI-driven selloff as an overreaction. What is unresolved is which management commitment Burry believes was broken and whether Alibaba's own earnings or buyback actions in coming quarters will address his concern, or deepen it.
What would change this view

If Alibaba's next earnings report shows management following through on the capital-return or governance commitment Burry cited, his further-50%-downside call would be undercut.

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.