Michael Burry bought big and profited; Charlie Munger bought bigger and called it his worst mistake. Meanwhile, BABA trades around $136, tempting value hunters who wonder if the legends know something they don’t.

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Current Price: $136.42 · Day High: $136.20 · 52-Week High: $192.67 · Prev Close: $131.70 · Analyst Target Upside: 28% below target

Quick snapshot

1Confirmed facts
  • BABA trades near $136 per GuruFocus market data
  • 52-week high of $192.67 set on 10/02/25
  • Michael Burry held 350,000 shares at $96.55 avg buy per GuruFocus portfolio records
  • Charlie Munger halved BABA stake on April 12, 2022 per DRWealth transaction report
2What’s unclear
  • Exact Warren Buffett or Berkshire BABA holdings per SEC filings
  • Burry’s current 13F position size per latest regulatory filing
  • Whether Munger holds any BABA today per confirmed disclosure
3Timeline signal
  • Munger bought 165,320 shares week of April 5, 2021 per DRWealth transaction log
  • Burry initiated position in Q2 2019 per GuruFocus portfolio tracker
  • Munger halved stake April 2022 per StockCircle transaction records
4What’s next
  • Freedom Broker upgraded to Buy at $190 per investment research note
  • Alibaba resumed buybacks under $140 ceiling per financial news report
  • AI capex plan of $52B over 3 years per company disclosure
Field Value
Ticker BABA (NYSE)
Latest Close $135.82
52-Week High $192.67
Analyst Rating Buy upgrades noted
Burry’s Largest Position 21.3% of portfolio
Munger’s BABA Loss ~34% estimated
BABA P/E Ratio 21
Alibaba ROIC 7.4%

Is BABA a Buy Right Now?

BABA shares hover around $136, sitting roughly 28% below the average analyst price target. That discount caught Freedom Broker’s attention — they upgraded the stock to Buy with a $190 price target. The valuation looks cheap relative to earnings, with a P/E of 21 compared to an industry median of 4.9% for ROIC.

Current Price Snapshot

  • BABA closed at $135.82 in recent trading per GuruFocus market tracker
  • Previous close was $131.70
  • Day range: $133.00–$136.20
  • 52-week high: $192.67 (reached October 2025)

Analyst Targets

Analysts see meaningful upside from current levels. The stock trades at a PE of 21, which value-focused investors interpret as attractively priced after the share price recovery from lows. Freedom Broker’s upgrade to $190 represents the most direct bullish call available in recent coverage.

The upshot

At ~$136, BABA trades 28% below analyst targets — a gap that value investors like Burry appear to be counting on. The question is whether the discount reflects genuine undervaluation or ongoing structural headwinds.

Why is Michael Burry Investing in Alibaba?

Michael Burry built his BABA position quietly over years, accumulating shares through his firm Scion Asset Management. The position grew large enough to represent 21.3% of his entire portfolio — making it his largest single holding. Burry’s contrarian reputation makes his continued involvement notable.

Burry’s Recent Purchases

  • Burry initiated BABA in Q2 2019 with 50,000 shares per GuruFocus portfolio records
  • Total of 350,000 shares bought at average $96.55 across 8 purchases per GuruFocus transaction log
  • He later sold all 350,000 shares at average $112.51 across 4 sales per GuruFocus filing record
  • Reports indicate he bought again in Q4 2022 and loaded up on call options per investment news
  • Estimated gain on closed positions: 16.53% or roughly $5.59 million per GuruFocus calculation

Potential Reasons

Burry has shown willingness to hold concentrated positions in out-of-favor names. His approach with BABA mirrors previous bets against market consensus. The stock’s recovery from pandemic-era lows and Alibaba’s AI investments may align with his thesis.

BABA is Michael Burry’s largest portfolio position at 21.3% — a level of concentration that signals genuine conviction.

— GuruFocus (investment tracking service)

Is BABA Undervalued?

Alibaba’s fundamentals tell a mixed story. ROIC of 7.4% exceeds the industry median, and 10-year EPS growth of 10.4% suggests underlying business resilience. The stock’s PE of 21 looks reasonable on historical basis. However, Munger’s experience reminds investors that cheap can get cheaper.

Valuation Metrics

  • P/E ratio of 21 — considered attractive for a company of Alibaba’s scale
  • ROIC 7.4% vs industry median 4.9%
  • EPS growth of 10.4% over past decade
  • Market cap reflects significant discount to peer averages

Recent Price Recovery

Alibaba restarted share buybacks with a $140/share ceiling after pausing near $100. Daily buyback activity peaked at $40 million per day but has settled to roughly $10 million under the $140 threshold. The company also committed $52 billion in AI capex over three years, signaling confidence in future growth.

What to watch

Alibaba’s $52 billion AI investment plan could reshape competitive dynamics. If the company successfully monetizes AI capabilities, the current valuation multiple may prove too conservative. The capex drain on cash flow deserves close monitoring.

Does Warren Buffett Own Alibaba Stock?

Warren Buffett appears in many investor searches about Alibaba, likely because of his connection to Charlie Munger. Munger served as Buffett’s right hand at Berkshire Hathaway for decades. But direct confirmed holdings of BABA by Buffett or Berkshire remain elusive in available data.

Buffett’s Holdings Check

No Tier 1 or Tier 2 source confirms Warren Buffett or Berkshire Hathaway owns BABA shares. The query “Warren Buffett invested query” shows up in search data, suggesting many investors hope for a Buffett endorsement. Without SEC 13F filings showing Berkshire BABA positions, this remains speculative.

Buffett-Worthy Traits

Alibaba displays some Buffett-friendly characteristics: dominant market position in Chinese e-commerce, consistent earnings growth, and a reasonable valuation. Munger’s willingness to buy billions in shares suggested he saw Buffett-type qualities. Whether Buffett agrees privately remains unknown.

Should I Buy, Sell, or Hold BABA Stock?

The legendary investor divide offers a useful framework. Burry’s net gains versus Munger’s losses suggest timing and conviction matter enormously. The stock’s current discount to analyst targets creates a tempting entry point, but Munger’s experience warns that Chinese tech can stay cheap for extended periods.

Pros and Cons

Upsides

  • Trades ~28% below analyst targets with Buy upgrade to $190
  • ROIC exceeds industry median; 10-year EPS growth of 10.4%
  • Aggressive $52B AI capex could unlock new revenue streams
  • Share buyback program at $140 ceiling signals insider confidence

Downsides

  • Charlie Munger lost ~34% and called it his worst mistake
  • No confirmed Buffett or Berkshire direct holdings
  • China regulatory risks remain elevated
  • Munger halved his stake — a cautionary signal from a legendary insider

Investor Transactions

The clearest data comes from public filings tracked by GuruFocus and StockCircle. Burry bought 350,000 shares at $96.55 average and sold them at $112.51 — netting a 16.53% gain. Munger’s story differs sharply: he bought roughly $35.4 million worth and ultimately lost an estimated 34% after heavy selling. His last confirmed move was halving the stake on April 12, 2022.

Timeline

Three legendary investors, three very different outcomes with the same stock.

Date Event
Q2 2019 Michael Burry initiates BABA position with 50,000 shares at ~$172.54
Q1 2021 Charlie Munger starts building BABA position for Daily Journal
April 5, 2021 Munger buys 165,320 BABA shares at ~$225/share (~$37 million)
October 4, 2021 Munger buys additional 136,740 BABA shares at ~$150/share
April 12, 2022 Munger halves BABA stake — first major exit signal
Q4 2022 Reports indicate Burry purchased BABA shares again
October 2025 BABA hits 52-week high of $192.67

The implication: Munger’s entry timing proved poor despite his reputation for value investing. Burry’s smaller initial position and willingness to trade in and out saved him from Munger’s fate.

What We Know — and What We Don’t

BABA attracts intense investor interest partly because of the legendary names attached to it. Investors are particularly interested in the BABA Aktie Kurs due to the involvement of legendary investors like Charlie Munger and Michael Burry. BABA Aktie Kurs

Confirmed

  • BABA trades near $136, down from 52-week high of $192.67
  • Burry’s Scion Asset Management held 350,000 shares at $96.55 avg buy
  • Munger halved his Daily Journal BABA stake on April 12, 2022
  • Freedom Broker upgraded to Buy with $190 target
  • Alibaba’s share buyback ceiling sits at $140

Unclear

  • Exact current Buffett or Berkshire BABA holdings
  • Burry’s precise current position after recent 13F filings
  • Whether Munger still holds any BABA today
  • Tomorrow’s price direction — no reliable prediction exists
  • Munger’s exact purchase prices beyond April 2021 entries

What Experts Are Saying

Charlie Munger recently described Alibaba (BABA stock) as one of his WORST investment mistakes.

— Unrivaled Investing (analyst coverage)

Is Charlie Munger out of his mind? Will he be wrong about Alibaba — the question many investors are asking after his dramatic position changes.

— DRWealth (investment analysis)

BABA is Michael Burry’s largest portfolio position at 21.3% — a level of concentration that signals genuine conviction.

— GuruFocus (investment tracking service)

The stock trades at a PE of 21, considered cheap relative to historical multiples and peer valuations.

— DRWealth (investment analysis)

Bottom line: At ~$136, BABA trades 28% below analyst targets and carries a PE of 21 — numbers that clash with Munger’s cautionary tale. Value investors drawn to the valuation may want to study Burry’s trade management versus Munger’s buy-and-hold approach. Risk-averse investors should weigh the absence of any confirmed Buffett or Berkshire endorsement heavily.

Related reading: ASX: PLS Share Price Analysis · Copper Price Per Kg Live Chart

Additional sources

gurufocus.com, youtube.com, stockcircle.com, youtube.com, youtube.com, stockcircle.com, youtube.com, drwealth.com

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Frequently asked questions

What is the current BABA share price?

BABA shares recently traded around $136, with a previous close of $131.70 and a day range of $133.00–$136.20.

Where does BABA trade?

BABA trades on the New York Stock Exchange (NYSE) under the ticker BABA.

Is BABA undervalued?

Analysts and some value investors consider BABA undervalued at a PE of 21, especially given ROIC of 7.4% exceeding the industry median and 10-year EPS growth of 10.4%. Freedom Broker’s $190 target implies 28% upside from current levels.

How much did Charlie Munger pay for Alibaba?

Munger’s Daily Journal bought 195,000 BABA shares initially, then added 165,320 shares the week of April 5, 2021 at approximately $225 per share and 136,740 shares the week of October 4, 2021 at roughly $150 per share. Total estimated purchase cost was around $35.4 million.

Is Alibaba stock a Warren Buffett-worthy investment?

Alibaba shows some Buffett-friendly traits — dominant market position, consistent earnings, reasonable valuation — but no confirmed Warren Buffett or Berkshire Hathaway direct holdings appear in available data. Munger’s willingness to buy billions in shares suggested he saw Buffett-type qualities, but Buffett himself has not publicly endorsed BABA.

What happened to Charlie Munger’s BABA investment?

Munger called BABA one of his worst investment mistakes. After buying approximately $35.4 million worth, he ultimately sold 407,000 shares and halved his remaining stake on April 12, 2022. Estimated loss: 34%.

How wealthy was Charlie Munger when he died?

Charlie Munger died in 2023 with an estimated net worth around $2.3 billion, much of which came from his Berkshire Hathaway stake rather than his Daily Journal management activities.