3 Reasons to Hold Alibaba Stock Despite Its High Premium P/S

Alibaba trades at a premium valuation but offers fundamental support for existing shareholders to hold. The company's cloud and AI businesses are accelerating with AI revenues exceeding one-third of cloud sales, core e-commerce remains resilient to fund AI ambitions, and management has outlined a disciplined multi-year AI infrastructure payback plan. While near-term margin pressure from capex and quick commerce losses persists, consensus earnings growth of 76.61% for fiscal 2027 supports patience through the current investment cycle.