Chinese technology stocks rebounded strongly! Michael Burry and other major investors have increased their stakes in JD.com and Alibaba, becoming their largest holdings

According to the latest regulatory documents disclosed, Scion Asset Management, an investment company owned by Michael Burry, the prototype of the protagonist of the movie \”The Big Short\”, increased its investment in large Chinese technology stocks in the first quarter of this year, increasing its stake in e-commerce company JD.com (JD-US) to 80%, becoming the largest Holding shares, Alibaba (09988-HK) (BABA-US) became Scion\’s second largest holding after acquiring an additional 50,000 shares, with a total value of approximately US$9 million. In addition, Scion also increased its holdings of Baidu (09888-HK)(BIDU-US) shares worth a total of US$4.2 million in the first quarter of this year.

According to the latest regulatory documents revealed, the prototype of the protagonist of the movie \”The Big Short\” is Michael Burry\’s investment company Scion Asset Management. In the first quarter of this year, it increased its investment in large-scale Chinese technology stocks and increased its stake in e-commerce company JD.com (JD-US) to 80%, becoming the largest holding of Alibaba. BABA (09988-HK)(BABA-US) became Scion\’s second largest holding after acquiring an additional 50,000 shares, with a total value of approximately US$9 million.
In addition, Scion also increased its holdings of Baidu (09888-HK) (BIDU-US) shares worth US$4.2 million in the first quarter of this year.
At the same time, billionaire investor David Tepper\’s hedge fund Appaloosa Management also increased its exposure to Chinese technology stocks in the first quarter of this year, more than doubling its holdings in Alibaba. The Chinese e-commerce giant became a part of its $6.7 billion stock portfolio. largest holding.
However, according to the latest financial report, compared with Alibaba Tencent (00700-HK), the performance in the first quarter of this year was much better than Alibaba\’s net profit, which increased by 62% year-on-year, but Alibaba\’s net profit dropped sharply by 96%.
The comparison reflects the two companies\’ different performances in the market and investors\’ different reactions to them.
Tencent is up more than 35% in Hong Kong this year, while Alibaba is up about 13%.
The above-mentioned stock price difference may be due to the unique challenges faced by Alibaba, such as fierce price wars and management changes. These factors may affect market confidence and the company\’s stock price performance.
Analysts believe that although Alibaba\’s performance has declined, it should not be seen as an indicator of the prospects for the entire technology industry. A fund manager at Fortune Mountain Asset Management Co. said Alibaba currently faces a tougher battle than Tencent as investors view Chinese technology brands as For established businesses and focused on the bottom line.
In contrast, Tencent has been able to realize profits after getting out of trouble.
As for JD.com, facing the dual challenges of fierce market competition and economic slowdown, the company achieved 7% revenue growth through price cuts and increased shopping subsidies.
In response to pressure from rivals such as Alibaba, Pinduoduo and ByteDance, JD.com has adopted discounts, promotions and other benefits in recent months, doubled the salaries of some frontline employees and provided 1 billion to audio and video content creators on the platform. Yuan subsidies and incentives.
As consumer sentiment remains sluggish, JD.com is also increasing its efforts in international expansion, including considering and ultimately abandoning the acquisition of British electronics retailer Currys. Its efforts in the field of AI have also paid off.
However, Bloomberg Intelligence analyst Catherine Lim pointed out that the annual growth rate of JD.com’s retail operating profit in the first quarter of this year may decline for the second consecutive quarter.
Amid fierce competition with other retailers such as Alibaba and Douyin, JD.com\’s revenue growth may be affected by free shipping services and rising employee wages.
In addition, JD.com’s new free returns service launched in the first quarter of this year may also lead to higher costs.
In addition, JD.com, like other technology companies, has stepped up its stock repurchase program and plans to repurchase up to $3 billion worth of shares by March 2027.
Bloomberg Intelligence estimates a six-fold increase in buybacks in the first quarter of this year, suggesting there may be more buybacks this year.
As of Thursday (16th), JD.com’s U.S.-listed stock price has risen by 18.62% this year, while Alibaba’s stock price has risen by about 11.86%, and Baidu has fallen by 5.46% over the same period.

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