Quick Read – Alibaba’s CFO touted $46 billion in net cash, then launched a $10 billion share sale days later, and Burry exited his entire position immediately. – BABA ADR holders absorb the dilution without access to the discounted Hong Kong placement price, with shares down 19%…
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On August 20, 2026, Alibaba (NYSE:BABA) CFO Toby Xu told investors the company held approximately $30.7 billion in net cash excluding debt with maturities beyond five years, with a net cash position of approximately $46.5 billion. He added: “This balance sheet strength gives us confidence to invest for robust growth.” Days later, the company priced a roughly HK$80 billion (about $10.2 billion) share sale at HK$112.70 per share against Friday’s Hong Kong close of HK$123, described as the largest follow-on equity offering by a Hong Kong-listed company on record. Burry exited his entire Alibaba position that same weekend.
What Burry Actually Said In his Substack post, the Scion Capital founder wrote: “I planned to move most of it back after a month or two. No longer.” He added that Alibaba’s price would have to “fall by half for me to get interested again” and that “I cannot bless share issuances.” He expects Alibaba’s return on invested capital to continue declining. In plain terms, ROIC measures the profit a company earns on every dollar it invests.