Alibaba could dip to its IPO price of $68 per share, but its outlook is far from gloomy moving forward, an analyst said Thursday.
"Short term I am bearish. Long term, there are a lot of great reasons to own Alibaba," Jeff Kilburg, founder and CEO of KKM Financial, told CNBC's "Power Lunch."
Read MoreAlibaba opens first US cloud center
U.S.- listed shares in the Chinese e-commerce company have shed more than 20 percent in the last three months and were trading around $85 on Thursday afternoon. The stock is in "price discovery mode" after "tremendous volatility," he said.