JD, BABA Stocks In Focus: Michael Burry Sees Hong Kong Market Benefiting From Korea's AI-Memory Unwind

• Burry’s comment comes as Chinese tech stocks stage a modest rebound in July after months of sustained declines.
• On Wednesday, the Chinese media outlet Jiemian reported that Alibaba disclosed a narrowing of losses in its instant-commerce business in the June quarter, while overall profitability held steady.
• Stocktwits sentiment for BABA shifted to ‘extremely bullish’ from ‘bullish,’ while sentiment for JD remained ‘bullish.’

JD.com’s stock fell 0.3% in early premarket trading, while Alibaba Group shares rose, after ace investor Michael Burry said he increased his JD.com position and believes the Hong Kong stock market could gain in the near term.

“The Big Short” investorMichael Burry disclosed on Wednesday that he bought more JD shares. But more importantly, he said he believes the recent pullback in memory stocks in South Korea and AI-linked stocks in Japan will benefit the Hong Kong market, which is dominated by Chinese tech companies.

“I also bought more JD at $27.58. This is one of my top three positions,” Burry wrote in a Substack trading update. “ I believe the unwinding of the AI/memory mania in South Korea and Japan will benefit Hong Kong/Chinese stocks.”

Burry’s comment comes as Chinese tech stocks stage a modest rebound in July after months of sustained declines, driven by concerns over heavy spending on quick commerce initiatives, weak consumer demand, and the broader slowdown in China’s economy.

Alibaba Posts Strong Bottom-Line Signal

BABA stock rose 11% on Wednesday after a report in the local media outlet Jiemian said that the company disclosed narrowing losses in its instant-commerce business in the June quarter while overall profitability held steady. The company has yet to set the date for its fiscal first-quarter results announcement.

Hong Kong’s Hang Seng has climbed nearly 6% so far this month. Chinese technology companies account for roughly 35% to 40% of the Hang Seng Index by weight.

Apple supplier Luxshare Precision went public in Hong Kong on Thursday, after raising $3.09 billion in the city’s biggest IPO this year.

Retail View On BABA, JD

On Stocktwits, retail sentiment for BABA shifted to ‘extremely bullish’ early Thursday from ‘bullish’ the previous day, while the sentiment for JD remained ‘bullish.’

“$BABA Alibaba stock is rallying as its pre-earnings briefing signals AI momentum and improving core business efficiency. China might be picking back up! Other Chinese names bullish today: $JD $BIDU,” a trader wrote.

BABA stock is down 25% year-to-date, while JD shares are down 0.3%.

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