Alibaba shares will fall in the next few days as traders expect the company to raise new revenue in the months to come, Reuters reported on Friday.
Shares of the Chinese online giant, which has a market capitalization of $66.3 billion, dropped $1.7 billion in early trading on Friday, the report said.
The fall came as the company raised $2 billion in its most recent round of funding, raising its funding total to $7 billion.
Alibaba is aiming to raise another $2.5 billion in funding over the next three months.
Analysts polled by Reuters expect the Chinese e-commerce giant to continue to raise revenue through its own sales channels and the sale of its cloud-computing business, with the company expected to have $3.4 billion in revenue for the year.
However, analysts expect the drop in Alibaba’s stock to be temporary.
“We’re expecting the next round of financing will help Alibaba reach a bigger and better valuation and we expect the revenue numbers to return to where they were in 2015,” an analyst at Barclays Capital said.
“It looks like we’ll see some more of that over the course of the next month.”
The drop in shares comes as Alibaba is working to ramp up its cloud computing business, where it hopes to grow revenue by as much as 15% in the coming years.
The company has already raised $1bn from private investors, including venture capital firm Sequoia Capital, as part of its Series B funding.
Its recent rounds of funding have raised $6.5bn, according to Bloomberg.
Banks will continue to look to Alibaba for growth, and the company will continue raising new funding, analysts at Morgan Stanley said in a research note.