Michael Burry, in a Substack post, stated that he believes Alibaba's stock is overvalued and that he recently liquidated his holdings in Alibaba, instead taking a significant position in its competitor, JD. Burry noted that Alibaba's stock price would need to be "halved" to pique his interest again. Previously, Alibaba announced plans to raise approximately HK$80 billion (US$10.2 billion) through a rights issue for AI investments, which would be the largest follow-on offering by a company in Hong Kong's recorded history. Burry stated he "cannot endorse" the rights issue and expects Alibaba's return on invested capital to continue to decline. Alibaba ADRs have fallen 18.6% year-to-date and dropped 8.6% last Friday.