Earnings Forecast

Some headwinds for Alibaba ahead of earnings: Analysts

BABA before earnings

Alibaba should be "fairly well protected" against a slowing of the Chinese economy, as indicated by the latest currency move, Morningstar's R.J. Hottovy said Tuesday

"If you look at the household incomes of Chinese consumers, there isn't a lot of exposure to the equity markets," he told CNBC's "Power Lunch." "In that sense I think the company should be fairly well protected. That being said, if it is going to impact and create caution among Chinese consumers it could be counted a near-term headwind."

Hottovy added that the shift to mobile and e-commerce could help Alibaba take share from traditional retailers and thus offset slower consumer spending.

On Tuesday, the Chinese central bank moved to devalue the yuan in an effort to offset negative economic data foretelling a slowdown. The Chinese e-commerce giant is set to report first-quarter earnings Wednesday before markets open.

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Mark Yusko of Morgan Creek Capital Management warned against the negative sentiment surrounding the company.

"I think one of the biggest problems is a focus on the quantity of growth versus the quality of growth," he said in the same interview. "I think China is doing a great job transitioning from fixed-asset investing to consumption."

Yusko added that there is "huge potential long term for e-commerce, mobile e-commerce and companies like Alibaba."

Disclosures: Neither Mark Yusko nor Morgan Creek Capital Management owns shares of Alibaba. However, the firm does own BABA through funds.