Michael Burry Is Buying Alibaba Stock. Should You?

Alibaba (BABA) stock has traded sideways for the last three weeks after a drastic fall in the first two months of the year. This is usually an ideal time to buy for those looking to accumulate shares. It doesn’t come as a surprise that Michael Burry was doing exactly that. Burry disclosed that Alibaba was a significant part of his portfolio at just over 6%. He believes the stock’s weak year-to-date (YTD) performance offers an entry point that is too good to ignore.

While Burry’s bets are often based on risks that the market continues to ignore, he has had a good few months after questioning the sustainability of the AI trade and pointing out the lack of accounting transparency in the way companies book their AI investments. The Mag 7 has struggled in the recent past, and so people have started taking the famed investors more seriously than before. His recent stake in Alibaba comes in addition to his significant position in JD.com (JD) and GME (GME).