Alibaba (BABA) stock is under renewed pressure after Michael Burry exited his position and shifted his money toward Chinese rival JD.com (JD). The famed “Big Short” investor said he no longer plans to buy Alibaba back unless the stock falls by roughly half, raising fresh questions about valuation, dilution, and the company’s aggressive artificial intelligence spending.
BABA stock closed at $119.44 on Tuesday after plunging 8.5% in a single session following Alibaba’s latest financing announcement. The shares are down sharply by about 18% in 2026 and remain well below their 52-week high of $192.67, which shows growing investor concerns over profitability and the cost of the company’s AI expansion.