Market Overview

Jim Chanos: I'm Shorting Alibaba, Going Long JD.com

Share:
Jim Chanos: I'm Shorting Alibaba, Going Long JD.com
Related BABA
Want Some Exposure To China's Growth? Stifel Says Buy JD Or Alibaba
Alibaba Ups The Ante In Connected Cars With Ford Partnership
Deep Dive: Ripple/XRP Edition Part I (Seeking Alpha)
Related JD
Want Some Exposure To China's Growth? Stifel Says Buy JD Or Alibaba
Q3 13F Roundup: How Buffett, Einhorn, Paulson, And Others Adjusted Their Portfolio
Chinese fintech company scales back IPO plans (Seeking Alpha)
  • 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

 

Related Articles (BABA + JD)

View Comments and Join the Discussion!

Partner Center