Burry Sees Alibaba Slipping Further as AI Push Hits Cash Flow
Alibaba’s June quarter showed a 75% drop in net income as capital expenditure surged 75%, pushing free cash flow negative and prompting a $10.2 billion share sale to fund AI infrastructure. Michael Burry, who has moved his Alibaba stake into JD.com, says the stock would need to fall another 50% before he would buy again, highlighting the tension between heavy AI spending and shareholder returns despite some cloud/AI revenue growth.
