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Alibaba’s Next Letter Should Take a Page From Google

Evidently troubled by its languishing stock price, Alibaba is trying to improve investor communication. Its efforts still fall short.

In a letter to shareholders late last week, Alibaba founder and chairman Jack Ma argued the company is misunderstood by overseas investors. He said it is more than just an e-commerce retailer, with operations in cloud computing, Internet finance, and entertainment.

Investors can be forgiven for focusing on e-commerce, though. In the June quarter, it accounted for 92% of revenue. Cloud computing contributed just 2%, while the finance business has been spun-off.

Mr. Ma also argued that investors are overreacting to China’s slowdown, turning to a cultural argument:

“During economic downturns, Western consumers may have trouble...


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