Alibaba’s growth to accelerate from 2023, analysts predict

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Alibaba is expected to reap higher revenue growth starting from 2023 as effects of China’s reopening materialize.

The Chinese ecommerce giant is scheduled to release its latest earnings this Thursday for the fiscal quarter ending December 2022.

Wright’s Research, an equity research firm that contributes to Seeking Alpha, expects Alibaba to see a dip in revenue of 4.2% in 2023 due to headwinds, but growth could be in the double digits through the next 10 years.

“Those near-term headwinds, such as a macroeconomic downturn as we mentioned, or tensions such as recently with Chinese spy balloons ratcheting up tensions, should dissipate at some point in our view. And when that happens, Alibaba is poised to run,” the research firm notes.

Bloomberg expects Alibaba to not see much growth when it releases results on Thursday, mostly due to cost-cutting measures. The Chinese firm recently sold off its shares in Indian fintech giant Paytm.

However, the Bloomberg report suggests that investors remain optimistic about “the company’s longer-term outlook with its strong ecommerce foundation in logistics, payment and customer base, and the potential of its cloud business.”

Such optimism seems to be in line with what chairman and CEO Daniel Zhang told staff lately, as reported by Nikkei Asia, saying that the group can “advance” in 2023. Zhang is reportedly heading Alibaba’s cloud business.

Last year, Alibaba Cloud said it would invest US$1 billion to boost its global ecosystem of partners and their market expansion.

See also: Alibaba’s financial health in 5 charts