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Jim Chanos: I'm Shorting Alibaba, Going Long

Jim Chanos: I'm Shorting Alibaba, Going Long
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  • Shares of JD.Com Inc(ADR) (NASDAQ: JD) spiked higher by more than 3 percent Friday afternoon after Jim Chanos pitched the stock as a long at a conference.
  • Chanos also pitched Alibaba Group Holding Ltd (NYSE: BABA) as a short, citing "accounting concerns."
  • Shares of Alibaba immediately turned negative and lost more than 4 percent.

Sources confirmed with Benzinga that Chanos presented the stock as a long position at the conference. The source also confirmed that Chanos is presenting a short thesis on Alibaba.

CNBC confirmed the report through a tweet, but added that Chanos has cited "accounting concerns" at Alibaba.

Shares of Alibaba immediately turned negative and was lower by more than 4 percent on the day.

Chanos is known for his negative outlook on Chinese stocks and the overall economy. He told CNBC in late August that the macro situation is "worse than you think." In fact, he suggested that "whatever you might think, it's worse."

"People are beginning to realize the Chinese government is not omnipotent and omniscient," Chanos also told CNBC. "In fact, like many of us, sometimes they don't have a clue."

Chanos Is Also Bearish On Tesla, SolarCity

Chanos' other short positions include SolarCity Corp (NASDAQ: SCTY) and Tesla Motors Inc (NASDAQ: TSLA).

The fund manager characterized Tesla's stock as "overpriced" on October 12. He suggested that Tesla's valuation implies the company is already selling millions of units, although he did acknowledge that Tesla does indeed sell a "great product."

Back in August, Chanos stated that SolarCity is essentially a "subprime financing company." He justified his position and told CNBC that consumers "basically lease the panels from SolarCity and they collect the lease payments."

Chanos also pointed out that SolarCity's cash burn and negative EBITDA is a "scary" combination in the current environment.

Posted-In: Long Ideas News Short Sellers Short Ideas Events Top Stories Exclusives Trading Ideas Best of Benzinga


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