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BABA still a good buy: Mahaney

Alibaba's brief time as a public company hasn't been stellar.

Just a year out from their IPO, shares are trading well below Alibaba's initial opening price. The Chinese ecommerce giant began trading at $92.70 in September of 2014 and peaked at $120 less than two months later.

However, on Friday in midmorning trade, the stock was around $65.

Mark Mahaney, top internet analyst at RBC Capital, said Friday on CNBC's "Squawk on the Street" that he believes there are three reasons why.

"First, China has soured, second is that the numbers have come in a little bit for Alibaba versus where people thought a year ago," he said. "And then third, there's been some of these negative, kind of regulatory management issues that have kind of surfaced on the name."

Despite these issues, Mahaney said he still sees Alibaba as a good buying opportunity. (Tweet This)

"At some point in the next year or two, we're going to make money with exposure to the China market. If you want exposure to China online retail, the single best play is this name," he said.

However, the Fed's policymaking committee decided not to raise interest rates Thursday, citing concerns over China's market and economy.

Read MoreFed leaves rates unchanged

Even so, Mahaney said Alibaba is still a good buying opportunity.

"If you can get the leading online retail play, online high margin, online high free cash-flow-generating, China retail play, online retail play, 20 times the earnings for what's probably going to be 20 to 30 percent sustainable earnings growth, you would buy that. You wouldn't hesitate."