Michael Burry Stock Portfolio: Top 8 Stock Picks

1. Alibaba Group Holding Limited (NYSE:BABA)

Scion Asset Management’s Stake Value: $21.22 Million

Number of Hedge Fund Holders: 115

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese internet giant that provides technology infrastructure that enhances connections between merchants and brands with their users and customers. While the stock is down by about 70% from its all-time highs, it is the biggest holding in Michael Burry’s portfolio. That’s because the company is the heart and soul of China’s burgeoning e-commerce landscape, controlling about 50% market share through Tmall and Taobao platforms.

While Alibaba Group Holding Limited (NYSE:BABA) generates about $60 billion from its online marketplaces, it boasts a highly diversified revenue base. It boasts robust logistics operations through Cainiao and its cloud computing unit, strengthening its footprint amid the artificial intelligence race. Additionally, it flexes its muscles in the international e-commerce scene.

Alibaba Group Holding Limited’s (NYSE:BABA) long-term prospects remain intact, given that Chinese spending is growing. Retail sales have grown every month for two consecutive years, buoyed by China’s GDP growth of 5%. Also, the company has entered the artificial intelligence race with the unveiling of its own Qwen 2.5 Max, billed as much better than DeepSeek’s models.

While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.