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High hopes for Alibaba's first quarter since IPO

Perhaps the only problem with a successful initial public offering, followed by solid stock performance, is that expectations get set high.

That's currently where Alibaba Group finds itself, as the Hangzhou, China-based Internet retailer on Tuesday is scheduled to report its first quarterly results as a publicly traded company. In September, its stock debuted at roughly $92 a share.

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Though BABA was hovering around $102 a share in midmorning trading Monday, there's no telling what direction it will take after the company reports earnings Tuesday.

Alibaba Group rings the opening bell at the New York Stock Exchange on Sept. 19, 2014.
Adam Jeffery | CNBC
Alibaba Group rings the opening bell at the New York Stock Exchange on Sept. 19, 2014.

To Slava Rubin, CEO of crowdfunding site Indiegogo, Alibaba must really deliver on the quarteror risk disappointing Wall Street and watching shares give up gains.

"If the first [quarter] goes wrong, you go right into the penalty box," Rubin said Monday on "Squawk Alley." "So I expect a good report to come out."

Rubin will watch for gross merchandise volume, as well as number of users, which he hopes will exceed 300 million.

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Scott Devitt, managing director at Stifel Financial, shares Rubin's bullish view.

"We think there's risk to the upside, in terms of where expectations are going into the first quarter," Devitt said Monday on "Squawk on the Street."

Devitt, who currently maintains a "buy" rating on the stock with a $112 price target, thinks Alibaba will deliver 45 percent gross merchandise growth and 49 percent revenue growth, with expectations for upside on both estimates.

The burgeoning Chinese market, as well as possible mergers and acquisitions, will likely drive growth going forward, Devitt said.

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