Bill Miller Makes Bold Moves: Buys Shares in Two Key Stocks
Bill Miller just snapped up shares of Alibaba and Coinbase, making clear bets on two sectors battered by volatility but primed for a rebound. The value investing icon, known for trouncing the S&P 500 for 15 years straight at Legg Mason, disclosed the purchases in his latest portfolio update, according to Yahoo Finance.
Miller’s Miller Value Partners added more than 178,000 shares of Alibaba, the Chinese e-commerce titan, and nearly 23,000 shares of Coinbase, the top U.S. crypto exchange. The buys came as both stocks traded well below their all-time highs—Alibaba down over 70% from its 2021 peak, Coinbase off more than 50% from its 2021 debut.
The timing is no accident. Miller has a reputation for diving in when fear is highest and valuations are compressed. He famously bought Amazon during the dot-com crash—now a case study in contrarian investing. His moves carry weight beyond his own portfolio: institutions and retail investors track Miller’s trades for clues on where value may be hiding in plain sight.
Why Bill Miller’s Recent Stock Picks Matter for Investors
Miller isn’t chasing momentum here. Alibaba’s battered share price reflects not just macro headwinds but years of regulatory crackdowns from Beijing. For Coinbase, persistent doubts about crypto’s staying power—and the SEC’s regulatory heat—have kept institutional investors cautious. Miller’s willingness to step in signals conviction that the worst may be priced in.
Alibaba, now trading at a forward P/E under 9, offers a rare bargain among global tech giants. The company’s 2024 Q1 results showed revenue up 7% year-over-year to $30.7 billion, but the stock barely budged, as investors remain fixated on China risk. Miller’s bet suggests he views the regulatory cycle as bottoming out, with room for multiples to re-rate if sentiment shifts.
Coinbase, meanwhile, stands at the crossroads of crypto’s mainstreaming and regulatory uncertainty. Its Q1 2024 results surprised with $1.6 billion in revenue, up 72% year-over-year, thanks to a resurgence in Bitcoin trading and the launch of U.S. spot Bitcoin ETFs. Still, with the stock trading at less than 10x expected 2024 EBITDA, Miller appears to see asymmetric risk-reward—especially if regulatory clarity emerges or crypto adoption accelerates.
Markets noticed. Alibaba shares gained 4% in Hong Kong trading following Miller’s disclosure, while Coinbase popped 3% premarket. The quick reaction shows how influential a value legend’s conviction can be in unloved corners of the market.
What to Watch Next: Implications of Bill Miller’s Stock Purchases
Miller rarely makes one-off moves. If these bets play out, expect him to add on weakness—or rotate into related names. For Alibaba, keep an eye on upcoming regulatory signals from Beijing and signs of consumer spending recovery in China’s post-COVID economy. Any hints of stimulus or regulatory easing could catalyze a broader rerating across battered Chinese tech.
Coinbase’s next test comes with the SEC’s enforcement stance and the company’s Q2 results in late July. If Coinbase shows sustained profitability and growing institutional flows, Miller’s position could draw in more long-term capital. The launch of new crypto products or further ETF approvals would also validate his timing.
Other investors—especially those who’ve sat on the sidelines through recent volatility—are likely to reexamine their own exposure to both Chinese tech and crypto-adjacent U.S. equities. For now, Miller’s latest buys serve as a sharp reminder: value often hides where headlines scream the loudest, and patient capital can move fastest when consensus is paralyzed.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
The Bottom Line
- Bill Miller's purchases highlight potential value in battered tech and crypto stocks.
- His bets suggest confidence in recovery for Alibaba and Coinbase despite regulatory and market headwinds.
- Investors watch Miller's moves for signals on where value may emerge next.
