Alibaba will thrive as it dominates new markets in China, according to Goldman Sachs.
The firm reiterated its buy and conviction list ratings for Alibaba shares, predicting strong growth in the company's cloud computing and financial businesses.
"We remain impressed with Alibaba's overall leverage to China consumption growth given its strategy, positioning, ability to build new businesses (such as new retail) and its execution," analyst Piyush Mubayi said in a note to clients Wednesday. "We expect Alibaba to continue to invest for future growth on multiple fronts."
Alibaba shares closed up 1.3 percent Wednesday.