We recently released a list 10 Michael Burry stocks have huge upward potential. In this article, we will explore where Alibaba Group Holdings Limited (NYSE:BABA) stands with other Michael Burry Stocks with huge upward potential.
Michael Burry, Founder and Manager Scion Asset Managementfamous for predicting and profiting from the collapse of the housing bubble in the mid-2000s. His bold counter-trend bet is famous in the book, the movie "The Big Dwarf". Burry's investment strategy is drawn greatly from the rigorous market analysis and principles outlined in 1934's Security Analysis. The book advocates the advantages of financial statement analysis and emphasizes the importance of intrinsic value and structured investment principles.
That is, Bury never shys away from putting his own unique stamps on Wall Street’s principle of time-testing. By leveraging sophisticated financial instruments such as derivative securities and short selling, Burry has accumulated wealth, challenging traditional market wisdom. His 2001 Scion Value Fund Letter provides fascinating insights into his counter-trend prospects, which prioritizes long-term value over short-term price volatility. Burry made it clear that he was willing to tolerate short-term volatility in order to achieve substantial long-term returns. He said:
“I always choose a dollar bill with huge volatility discounts, rather than a dollar bill that sells at a fairly stable premium.”
He also has no doubts about making large investments in some of the stocks he believes are undervalued, investors who are holdings by Scion at the end of 2024.
Before the quarter ended on December 31, 2024, Michael Burry’s investment in technology stocks in the country was just around the corner after DeepSeek’s AI breakthrough sparked $1.3 trillion in Chinese tech stocks. The moves came during a period of high volatility in Chinese stocks, when investors appeared to lose confidence in Beijing after stimulus measures were implemented in late September. The government's actions sparked a crazy rally until early October, despite poor economic outlook due to the property crisis and unhappy with the scope of fiscal stimulus in the following months.
In this article, we examine Scion Asset Management's fourth quarter 2024 13F file to list Michael Burry's stock picks with the highest upside potential. We rank the company by its upward potential. These stocks are also popular among elite hedge funds.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
An e-commerce platform presents various products to online customers.
Q4 shares of Scion Asset Management: USD million
Analysts as of May 9: 32.90%
Number of hedge fund holders: 107
Alibaba Group Holdings Co., Ltd. (NYSE: BABA) is a technology and e-commerce company that serves consumers and small business owners. It is also a market leader in digital media, logistics and cloud computing. Nevertheless, the company has been working hard to grow in recent years due to regulatory barriers between the United States and China and trade and technological tensions.
On April 14, Barclays reiterated its overweight rating of Alibaba Group Holdings Co., Ltd. (NYSE: BABA), with a target price of $180. The company's analysts highlighted the rapid expansion of the company's cloud business, which the company is expected to continue throughout the year. According to Barclays, cloud profit margins may remain consistent as Alibaba Group Holdings Limited (NYSE:BABA) focuses on improving AI adoption during the industry’s “land grab” phase.
Alibaba Group Holdings Co., Ltd. (NYSE: BABA) offers AI services such as image and audio recognition, natural language processing and machine learning platforms. The company's QWEN AI model is also very popular. More than 90,000 derivative models have been developed, and more than 290,000 users use their API through Alibaba Cloud.
Overall, dad Ranked fifth There is huge upward potential on our Michael Burry stock list. Although we acknowledge Baba’s potential as an investment, our belief is that certain AI stocks offer higher returns over a shorter time frame and make greater hope during this period. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than Baba but have less than 5 times its earnings, check out our report The cheapest AI stock.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Inside monkey.