Why Michael Burry Thinks Alibaba, JD.Com, Baidu Needs Re-Evaluation?

• Burry thinks that Hong Kong stocks are in the “dumps” and have been struggling for some time. 
• According to Burry, in the last 10 years, Broadcom and Netflix have been leading performers, but Tencent’s stock has almost exactly a 0% return over the last five years.
• Burry has been skeptical on these stocks since last year as his Scion Asset Management liquidated most equity holdings and increased its bearish bets on China in the first quarter of 2025.

Famed investor Michael Burry on Thursday said that several Hong Kong stocks listed in the U.S. like Alibaba, JD.Com, Baidu among others need re-evaluation. 

“These companies deserve a re-evaluation, a deep look into vulnerabilities, virtues and value,” he said in a post on X. 

“First we must take a considerable detour and fully examine a vulnerability that applies to almost all these stocks,” he added. 

Shares of BABA, JD.Com and Baidu were down 3.6%, 2.4% and 6.7%, respectively,  at the time of writing. 

More From Burry

Burry thinks that Hong Kong stocks are in the “dumps” and have been struggling for some time. 

According to Burry, in the last 10 years, Netflix, Broadcom, and Tencent all increased revenue between 4.5-5 times. Broadcom and Netflix have been leading performers, but Tencent’s stock has almost exactly a 0% return over the last five years.

“This is the problem. All of Hong Kong’s massive tech stocks became massive since 2007, and the Hang Seng is today ~27,000, 15% lower than 2007,” he said. 

Skeptical On Hong Kong Stocks

Burry has been skeptical on these stocks since last year as his Scion Asset Management liquidated most equity holdings and increased its bearish bets on China in the first quarter of 2025.

Scion sold some shares of Alibaba (BABA), Baidu (BIDU), JD.com (JD), and PDD Holdings (PDD) in the first quarter of 2025, according to regulatory filings. 

How Did Stocktwits Users React?

Retail sentiment around BABA trended in ‘bearish’ territory and for JD.Com and Baidu it trended in ‘bullish’ territory amid ‘high’ message volume. 

BABA shares have risen nearly 6% over the past year while BIDU shares rose 36.2%. Shares of JD.com fell 37% in the meantime. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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