BABA(BABA) Finbold·2025-02-17 09:55Core Viewpoint - Michael Burry has shown a preference for Chinese technology stocks, particularly Alibaba (BABA), which has seen a significant increase in its stock price, but caution is advised due to technical indicators suggesting potential pullbacks [1][4]. Group 1: Stock Performance - Alibaba's stock closed at 125, which previously acted as support before a decline in 2021. A failure to break above this level could trigger profit-taking [3]. Group 3: Investment Actions - Michael Burry reduced his stake in Alibaba by 25%, which raises concerns given his history of predicting market downturns [4][6]. - Despite the reduction, Burry's actions occurred before a surge in Chinese equities, suggesting he may foresee risks that others are overlooking [4]. Group 4: Market Sentiment and Catalysts - General sentiment around Alibaba remains bullish, driven by its advancements in AI, including the launch of Qwen 2.5-Max, and a partnership with Apple to integrate AI into products in China [7][8]. - Alibaba's earnings have aligned with expectations, alleviating concerns about margin pressures, and the company is positioned to benefit from optimism in China's technology sector [8][9]. Group 5: Analyst Ratings and Forecasts - Analysts on Wall Street have taken note of BABA's performance, with Citi's Alicia Yap reaffirming a 'Strong Buy' rating and raising the price target from 138 [10]. - Barclays' Jiong Shao also maintained a 'Strong Buy' rating but lowered the target from 130 due to margin concerns. Analysts estimate Alibaba's revenue for Q4 2024 to reach approximately $39 billion, a 7.06% year-over-year increase [11].