Top Michael Burry stock hits most overbought level ever; Time to exit?

Core Viewpoint - Alibaba Group (NYSE: BABA) is experiencing a significant stock rally in 2025, raising concerns about the sustainability of this momentum due to its overbought status as indicated by the Relative Strength Index (RSI) [1][2]. Group 1: Stock Performance - BABA's stock price reached $143.75, marking a 5.7$1 billion stake in Alibaba reflect strong confidence in the company, contributing to the stock's rally [10]. Group 3: Financial Performance - Alibaba reported a net income of 48.945 billion yuan ($6.75 billion) for the December quarter, surpassing analyst expectations and significantly improving from 14.433 billion yuan ($1.99 billion) in the same period last year [7]. - Revenue for the same quarter reached 280.154 billion yuan ($38.64 billion), exceeding forecasts of 279.34 billion yuan ($38.53 billion) [8]. Group 4: Regulatory Environment and Strategic Initiatives - There are signs of a more favorable regulatory environment for Chinese tech firms, bolstered by Alibaba founder Jack Ma's meeting with President Xi Jinping, where Xi expressed "unwavering support" for entrepreneurs [9]. - Alibaba's aggressive investment in artificial intelligence (AI) has resulted in six consecutive quarters of triple-digit growth in its cloud segment, aligning with market trends favoring tech investments [9]. Group 5: Analyst Ratings - Wall Street analysts remain bullish on BABA, with Citi's Alicia Yap maintaining a 'Strong Buy' rating and raising her price target from $133 to$138 [11]. - Barclays' Jiong Shao also maintained a 'Strong Buy' rating but adjusted his target from $137 to$130, citing margin concerns amid ongoing investments [11].