US-listed shares of JD.com jumped 2.0% on Friday after investor Michael Burry disclosed new purchases in the China-based online marketplace.
Burry, who is widely known for his role in "The Big Short," detailed the trades in a Substack post aimed at paid subscribers. In that post he said he had bought shares in both JD.com and Alibaba.
The post described the size of those positions: "JD is a significant add, and Alibaba is a new position, a little over 6%," and added that JD was "a bit more than that." The note said recent weakness in JD provided "an attractive entry point."
In addition to the Chinese e-commerce names, Burry disclosed purchases in GameStop, stating he was "adding to an already decent sized position," and that he had also bought shares in Fiserv.
On the derivatives side, Burry wrote that he had increased his bearish exposure to Nvidia by adding put options, specifying "this time buying the January 27 Strike 115 puts at 3.30."
The Substack post served as the vehicle for these disclosures and was described as being for paid subscribers. The information in the post linked the equity purchases and options trades to Burry's current positioning across several sectors, including e-commerce, payments, retail gaming, and semiconductors.
Market participants reacted immediately to the JD disclosure, lifting the stock 2.0% in US trading on the day the purchases were reported. The broader implications of the trades for the stocks mentioned will depend on further market developments and any additional disclosures Burry may publish.
Context and implications
While the post provided specific position descriptions and an options trade with strike and premium, it did not include additional commentary on timing beyond the January 27 expiration for the Nvidia puts, nor did it give further details about position sizes for the other holdings beyond the percentages cited for Alibaba and the relative descriptor used for JD.