Alibaba’s China commerce revenue is expected to remain under pressure due to Covid-related lockdowns in major Chinese cities during the June quarter.
Meanwhile, the Chinese government in May announced a range of economic stimulus designed to help an economy battered by aHowever, not all analysts expect to see a return to explosive growth for Alibaba.
"When I visualize my 'cone of all plausible outcomes,' the plurality of scenarios lead to a modest reacceleration of growth back to the mid-teens, but I also see a whole category of scenarios where things get much worse on the fundamentals," John Freeman, vice president at CFRA Research, told CNBC via email.Besides Alibaba's core commerce business, investors are also focused on cloud computing revenue even though it still accounts for under 10% of total sales.
"Cloud is the reason for most of Amazon's appreciation in value over the last decade and that could be true for Alibaba eventually." Forecasts for the cloud business are mixed. U.S. Tiger Securities expects cloud revenue to grow 8% year-on-year in the June quarter, which would be the slowest growth rate on record. China Merchants Securities meanwhile forecasts 13% year-on-year growth, which would be a slight acceleration from the March quarter.
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