Alibaba's stock slump this year has unnerved many of the company's shareholders, but for UBS analyst Eric Sheridan, this is just a part of the growing pains.
Read More Alibaba's magic fades as stock plunges
"A lot of what's happened over the last one to two months is that some of the optimism from the IPO has worn off," Sheridan told CNBC's "Squawk on the Street" on Wednesday. "We believe growth is still going to be good."
Sheridan said that Alibaba has the potential to become one of the few global e-commerce companies over the next five to 10 years. He attributes that to a "model that works" and opportunities for growth within China.