Michael Burry, one of America’s most closely watched investors and the man who is famous for predicting the 2008 housing crash, has revealed that he has increased his position in Alibaba Group (BABA). According to a report by Stockwits, in a Substack post, Burry said he purchased additional shares at $111.90, describing the Chinese tech giant as “the most advanced company in China as far as AI strategy goes.” Burry’s bullish stance on Alibaba comes as his fund has taken positions against U.S. AI leaders like Nvidia and Palantir. He has repeatedly warned that valuations in the American AI sector are inflated by hype rather than sustainable fundamentals, contrasting them with what he sees as undervalued opportunities in China.
Buybacks and AI spending
Burry highlighted, Alibaba’s ongoing stock repurchase program as a key factor in his investment thesis, arguing that buybacks are boosting shareholder value even though the market has yet to fully recognise it. He added: “The stock is well-off recent highs. When the time comes, the stock will launch fast and fly high.” Alibaba has committed $56 billion over three years to expand its AI footprint, including cloud computing, semiconductors, and model deployment. While its Cloud Intelligence Group posted strong growth in Q1, adjusted earnings per ADS fell 95% year-on-year, reflecting the heavy investment burden.Alibaba shares have declined 23% year-to-date, and traded more than 1% lower overnight heading into Monday. Retail sentiment on Stocktwits shifted from bearish to neutral, with message volume rising 156% in 24 hours. Some traders praised Alibaba’s forward price-to-earnings ratio of 17 compared to Amazon’s 27, while others expressed frustration over long-term underperformance.
‘Big Short’ investor Michael Burry is not impressed with Anthropic valuation
Recently, it was reported that Michael Burry warned about the high valuation of AI giant Anthropic. As reported by Business Insider, in recent Substack discussions, Burry said that he sees little justification for Anthropic’s nearly $1 trillion valuation, calling its AI model business “far too expensive” and unsustainable in the long run. The comments came shortly after Anthropic announced it had raised capital at a $965 billion valuation, a milestone that puts the San Francisco-based AI company on the doorstep of a $1 trillion price tag and sets the stage for a public listing at an even loftier figure. For Burry, the number did not add up. “There is no guarantee, and not even a strong likelihood, that Anthropic is long-term worth anywhere near $1 trillion,” he wrote in a subscriber chat thread, according to a Business Insider report.AI giant Anthropic, who is the maker of the popular Claude AI model, recently raised capital at a $965 billion valuation, paving the way for a public listing. Burry was blunt in his assessment: “There is no guarantee, and not even a strong likelihood, that Anthropic is long‑term worth anywhere near $1 trillion.”