Big short investor Michael Burry is betting on two wobbly Big Tech stocks from China

Big short investor Michael Burry is betting on two volatile Chinese Big Tech stocks in his current portfolio.

• Burry added to Alibaba and in Q4
• Chinese stock market under pressure
• Experts positive for Alibaba and

Burry is betting on Chinese Big Tech stocks

The Chinese stock market has been under pressure for some time. Attention is primarily focused on the real estate crisis and China’s economic growth. Nevertheless, Michael Burry, the asset manager made famous by the film Big Short, recently increased his bets on Chinese Big Tech stocks.

In recent months, the big-short investor has significantly increased his positions in Chinese tech giants Alibaba and With 75,000 shares worth around $5.81 million, Alibaba is now the largest position in Burry’s Scion Asset Management portfolio worth around $94.6 million. As shown in the recently filed Form 13F with the SEC, the investor increased the position by a full 50 percent in the last quarter of 2023, meaning that the e-commerce giant now accounts for 6.15 percent of its entire portfolio.

Smaller rival Inc. was Scion’s second-largest holding (6.11 percent), with about $5.79 million, after the company increased its position by 75,000 shares, or 60 percent, in the quarter.

Fluctuating China titles

So far, the two investments have not proven to be lucrative. Since the beginning of the year, Alibaba’s share price has fallen by 4.64 percent in US trading, while has even recorded a decline of around 16.16 percent (as of February 16, 2024). According to Bloomberg, this is due to global fund managers reducing their positions in Chinese stocks due to the ongoing housing crisis and slowing growth.

Burry, who became known for his prediction of the US real estate market crash in 2008, is once again betting on these companies, as Bloomberg reports. Already in 2022, he acquired shares in Alibaba and, listed on the New York Stock Exchange, after China had just overcome the pandemic. However, he liquidated his positions again in the second quarter of 2023, only to enter them again a few months later.

This is how other investors and experts rate the shares

However, Burry wasn’t the only fund manager to pick up Alibaba shares last quarter. The company was also picked up by the Canada Pension Plan Investment Board as the largest new addition to the portfolio, according to Bloomberg. On the other hand, Tiger Global Management decided to sell its position in the retailer, selling 1.48 million shares worth $128 million.

Wall Street analysts also appear bullish on Alibaba and, according to data from TipRanks. According to the website, Alibaba shares received a “strong buy recommendation” from 18 expert assessments (15x “Buy”, 3x “Hold”) in the past three months. The average price target is $101.49, which represents a growth potential of 37.32 percent compared to the last price of $73.91.

According to TipRanks, shares received a “moderate buy” recommendation (5x “Buy”, 5x “Hold”) from 10 analyst reviews. The average price target here is $38.10, representing a change of 57.31 percent compared to the last price of $24.22.

Editorial team

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