Michael Burry’s Strategic Move into Alibaba: Gaining $169 Million in Profit
Renowned investor Michael Burry, famously portrayed in The Big Short, has made waves in the financial markets once again. His firm, Scion Asset Management, has taken a bold bullish stance on Alibaba (NYSE: BABA), reigniting intrigue in Chinese stocks among international investors. This decision marks Burry’s return to Alibaba after liquidating his prior position earlier in 2025.
Burry’s $3.8 Billion Alibaba Position
In Q2 2025, Scion Asset Management disclosed holding 250,000 call options on Alibaba valued at $28.35 million. With an estimated average strike price of $147.10 per share, and Alibaba currently trading at $153.87 (September 12, 2025), Burry’s contracts are in the money, translating to a paper profit of nearly $169 million.
The options provide exposure to 25 million shares, giving the position a notional value exceeding a jaw-dropping $3.8 billion. Though the premium Scion paid is far smaller, the sheer scale of the position reflects Burry’s confidence in the Chinese tech market.
Alibaba’s Rebound Amid Volatility
Alibaba shares have been on a rollercoaster in 2025, influenced by U.S.–China trade relations and global geopolitical concerns. The stock traded as low as $132.20 earlier this year but has since regained momentum, reaching levels unseen since late 2021. This recovery has piqued the interest of many investors, including Burry, who has pivoted from a previous bearish stance to betting big on its growth.
Why Alibaba Could Be a Game Changer
Alibaba remains a leader in e-commerce and cloud computing, making it a cornerstone of the technology and discretionary sectors. With substantial growth prospects despite geopolitical tensions, the company’s long-term potential continues to attract top-tier investors like Michael Burry.
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Conclusion
Michael Burry’s reinvestment in Alibaba signals a renewed faith in its financial potential despite global uncertainties. With a current unrealized profit of $169 million, his bold move epitomizes the importance of strategic risk-taking in the investment world. Those inspired by his strategy can explore investment avenues to navigate market opportunities effectively.
