Michael Burry Increases Stake in Alibaba, Highlights Buyback Program
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 10 2026
0mins
Source: seekingalpha
Alibaba Group Holding Ltd's stock fell 3.00% and hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.45% and the S&P 500 down 1.03%.
Investor Michael Burry recently increased his stake in Alibaba at $111.90 per share, emphasizing the company's leadership in China's AI strategy. He noted that the ongoing stock repurchase program is enhancing shareholder value, even as the stock remains undervalued. Burry believes that despite the current market conditions, Alibaba's investments in AI infrastructure, amounting to RMB 380 billion ($56 billion) over the next three years, will drive future growth, although it may pressure profits in the short term.
The shift in retail sentiment towards Alibaba, moving from 'bearish' to 'neutral' with a significant increase in message volume, indicates growing investor interest. This could signal a potential rebound for the stock as the market begins to recognize its value.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 104.970
Low
180.00
Averages
203.09
High
230.00
Current: 104.970
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Pressure: Following the lawsuit announcement, Alibaba's stock fell over 1%, with a 0.6% decline in Hong Kong, reflecting investor concerns that escalating U.S.-China tensions could threaten its access to American markets.
- Business Impact: While being on the 1260H list does not automatically lead to sanctions, it could restrict Alibaba's opportunities for Pentagon contracts, and new U.S. regulations may complicate its lobbying efforts, posing challenges for future growth.
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See More
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- Potential Losses: The company may sell back its 2020 Japanese investments to original management teams at a loss, reflecting diminished expected synergies and increasing investment risks.
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- Future Growth Potential: SpaceX plans to acquire AI coding company Cursor for $60 billion, which has seen its annual sales skyrocket from $100 million to $4 billion, potentially providing a robust growth engine, especially at the intersection of AI and space.
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See More
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- Rise of Secondhand Market: Sales of pre-owned electronics surged nearly 80% during the 618 shopping period, highlighting a shift in consumer preference towards lower-cost goods, likely in response to economic pressures.
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See More
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- Antitrust Probe Launched: Since January, China has initiated an antitrust investigation into online travel giant Trip.com, accusing it of market dominance abuse by forcing merchants into exclusive agreements and raising commission fees, with potential fines estimated at up to 4.9 billion yuan ($723 million), which directly impacted its stock, causing a nearly 20% drop in Hong Kong shares in a single day.
- Increased Regulatory Scrutiny: Ahead of the June shopping festival, Beijing summoned major tech firms including Alibaba and Tencent to address aggressive price competition and misleading promotional claims, indicating the government's heightened vigilance over market conduct aimed at maintaining order and preventing deflationary price wars.
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- Policy Shift Signals: After years of stringent oversight on the private sector, Beijing is now pivoting to support private enterprises, emphasizing the need for private sector confidence, job creation, and technology investment to stimulate economic recovery, showcasing a flexible policy approach and a renewed focus on economic growth.
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