5 Stocks Big Short Michael Burry Is Buying and Selling

4. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 105

Scion Asset Management’s Stake Value: $4,404,500

Alibaba Group Holding Limited (NYSE:BABA) made its way onto Michael Burry’s portfolio in Q4 2022, when he acquired 50,000 shares of the company valued at $4.40 million. 

On January 11, Barclays analyst Jiong Shao raised the firm’s price target on Alibaba Group Holding Limited (NYSE:BABA) to $141 from $114 and maintained an Overweight rating on the shares. The analyst anticipates that Alibaba Group Holding Limited (NYSE:BABA)’s revenue for the December quarter will be similar to expectations, but with improved margins. More importantly, the analyst noted that Alibaba is expected to experience growth in gross merchandise volume in the March quarter, marking the first growth in this area in 12 months.

According to Insider Monkey’s data, 105 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA) at the end of Q3 2022, compared to 106 funds in the prior quarter. David Blood and Al Gore’s Generation Investment Management is the biggest stakeholder of the company, with 4.50 million shares worth $360.7 million. 

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”