TradingKey – Alibaba (9988) shares came under clear pressure on Monday, dropping more than 10% at one point during Hong Kong trading.

Source: TradingView

Renowned investor Michael Burry publicly stated that he has liquidated his entire position in Alibaba and shifted to increasing his stake in competitor JD.com. Meanwhile, Alibaba has just completed a HK$80 billion (approximately $10.2 billion) share placement, planning to channel all raised funds into AI capabilities and infrastructure construction. Under the impact of these two developments, market concerns have intensified regarding whether Alibaba’s heavy AI investments can yield sufficient returns.

Burry is famous for successfully shorting the US housing market before the 2008…