“Big Short” famed investor Michael Burry has moved his investment from Chinese e-commerce giant Alibaba Group Holding (BABA) to its prime rival JD.com (JD). However, rather than buying JD.com on a trigger, Burry did so mostly because Alibaba has become too expensive. He argued that Alibaba would need to “fall by half” for him to be interested again. Moreover, the famous investor disliked Alibaba’s capital raise for AI capabilities and infrastructure investment.
On the other hand, JD.com has emerged as his preference in this paradigm. The company is showing signs of improvement, especially in its bottom line. Moreover, it is trying to expand its operations. For instance, it recently won a newly awarded pilot development area in Hong Kong's Northern Metropolis (a mega-project bordering Mainland China), in a JV with six companies. JD.com also plans to invest RMB 10 billion in resources to the robotics sector by 2028.
