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Will Alibaba's Move to Greater Transparency Pay Off as It Has for Google and Amazon?

For the first time, Jack Ma's Alibaba (BABA) will provide investors with greater detail on its fast-growing cloud service, its mobile and entertainment operations and its collection of other businesses when it reports earnings early on Thursday morning ET.

Alibaba's move is reminiscent of Google's restructuring under parent Alphabet (GOOGL) and of Amazon's (AMZN) decision to break out results from its cloud services business, both of which occurred last year. The changes give investors a clearer picture of the various operations inside these vast Internet groups and should make them easier to value.

They could also open management up to criticism, however, if the greater disclosures uncovers underperformance, bloated costs or other flaws that might be hidden with a less transparent structure.

Alphabet is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells GOOGL? Learn more now.

Ahead of its earnings report, Alibaba shares closed up 2.5% to $87.33 on Wednesday. Year to date...


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