We recently published a list of 10 Michael Burry Stocks with Huge Upside Potential. In this article, we are going to take a look at where JD.com, Inc. (NASDAQ:JD) stands against other Michael Burry stocks with huge upside potential.
Michael Burry, founder and manager of Scion Asset Management, is best known for predicting and profiting from the housing bubble’s collapse in the mid-2000s. His bold contrarian bet was famously chronicled in the book and film “The Big Short.” Burry’s investment strategy draws heavily from the rigorous market analysis and principles outlined in Benjamin Graham and David Dodd’s 1934 book “Security Analysis.” The book championed the merits of financial statement analysis, highlighting the importance of intrinsic value and structured investment principles.
That said, Burry has never shied away from putting his own distinct stamp on Wall Street’s time-tested principles. By utilizing complex financial tools, such as derivative securities and short-selling, Burry has amassed a fortune, challenging conventional market wisdom. His 2001 Scion Value Fund letter provides a fascinating insight into his contrarian outlook, which prioritizes long-term value over short-term price fluctuations. Burry makes it clear that to achieve significant long-term returns, he is willing to tolerate short-term volatility. He stated:
“I will always choose the dollar bill carrying a wildly fluctuating discount rather than the dollar bill selling for a quite stable premium.”
He also has no qualms about making significant investments in a few stocks that he believes are undervalued, a tactic the investor employed to strengthen Scion’s holdings at the end of 2024.
In the quarter that ended on December 31, 2024 just before DeepSeek’s artificial intelligence breakthrough sparked a $1.3 trillion surge in Chinese tech stocks, Michael Burry offloaded some of his investments in the country’s tech stocks. The moves came amid a period of high volatility for Chinese stocks, when investors appeared to be losing faith in Beijing following the implementation of a stimulus package in late September. The government’s actions triggered a wild rally until early October, though momentum waned due to a property crisis, a poor economic outlook, and dissatisfaction with the scope of fiscal stimulus in the following months.
Our Methodology
For this article, we examined Scion Asset Management’s Q4 2024 13F filings to list down Michael Burry’s stock picks with the highest upside potential. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
JD.com, Inc. (JD): Among Michael Burry Stocks with Huge Upside Potential
A wide and imposing view of a supply chain distribution center, illustrating the company's technology capabilities.
JD.com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce company that focuses on computers and other electronic products, all the while serving as a supply chain-focused technology provider. Using its logistics network, JD.com has established itself as a major player in China’s online retail market.
On April 28, Citi analysts revised their outlook for JD.com, Inc. (NASDAQ:JD), lowering the price target to $51 from $56 while maintaining a Buy rating on the company’s stock. The adjustment comes after the company’s order volume rose from 5 million to 10 million within a span of merely ten days, showing a strong push into the food delivery market.
JD.com, Inc. (NASDAQ:JD) announced its financial results for the fourth quarter and full year 2024 on March 6, 2025, indicating strong year-over-year growth in a number of critical areas. The company reported Q4 net revenues of RMB347.0 billion ($147.5 billion), up 13.4% from the same period in 2023. Full-year net revenues also came in at RMB1,158.8 billion ($158.8 billion), up 6.8% from the previous year.
Patient Capital Opportunity Equity Strategy stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q1 2025 investor letter:
“We entered JD.com, Inc. (NASDAQ:JD), a leading e-commerce company in China. Unlike competitors in the space, JD focuses on consumer electronics and home appliances supporting strong differentiation and defendable margins. The company has been on a year-long organizational restructuring following its ill-advised venture into the low-cost competitive space where it lacked an advantage. Not only will the company benefit from returning to their roots, but the government has rolled out a trade-in rebate policy for home appliances and consumer electronics further supporting demand. At the same time, the company has been disciplined in terms of spending, creating a margin expansion story as the topline demand improves. With the Chinese government increasing their focus on reigniting consumer consumption, we believe JD is well positioned to benefit from increased demand and improving margins. At the same time, the company is returning cash to shareholders via a dividend yield of 3.0%, and a buyback program that has seen 8.1% repurchased in 2024. While the risk of a trade war with China is an overhang on the stock, the company generates the majority of their revenues domestically.”
Overall, JD ranks 3rd on our list of Michael Burry stocks with huge upside potential. While we acknowledge the potential for JD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JD but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
