Burry Expresses Pessimism on Hong Kong Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy BABA?
Source: stocktwits
- Market Underperformance: Burry highlights that Hong Kong stocks have struggled over the past decade, with Netflix and Broadcom increasing revenues by 4.5 to 5 times, while Tencent has shown nearly 0% return over the last five years, indicating market weakness and declining investor confidence.
- Need for Re-evaluation: Burry asserts that several Hong Kong-listed stocks, including Alibaba, JD.com, and Baidu, require a thorough re-evaluation, emphasizing vulnerabilities and values, which suggests a diminishing confidence in these tech stocks within the market.
- Sell-off Actions: Burry's Scion Asset Management liquidated shares of Alibaba, Baidu, and JD.com in Q1 2025, reflecting his bearish outlook on the Chinese market, which may further influence investor decisions and market sentiment.
- Retail Sentiment Shift: While Alibaba's shares have risen nearly 6% over the past year, JD.com has seen a 37% decline, indicating a divergence in retail investor sentiment towards different stocks, potentially leading to increased market volatility.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 142.560
Low
180.00
Averages
203.09
High
230.00
Current: 142.560
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Low-Cost AI Tools: Alibaba Cloud launched a new AI coding platform providing low-cost access to various leading Chinese AI models, with the basic version priced at 7.9 yuan for the first month, aimed at attracting more developers and boosting cloud service revenue.
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ETF Performance: The VanEck FTSE All-World ex-U.S. ETF (VEU) has outperformed U.S. equities, gaining over 9% year-to-date compared to the S&P 500's slight gain, with significant interest from institutional investors.
Sector Exposure: The VEU ETF shows a strong allocation towards financials and technology, with notable holdings in companies from Japan, the UK, and Canada, reflecting a diversified global investment strategy.
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See More
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