Yahoo! is in a difficult position, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio. The stock has run up to $40, from $19 thanks to the company's stake in Alibaba, not for the work that CEO Marissa Mayer has done.
However, it now appears Alibaba is beginning to slow, and so Yahoo! stock has more downside, he said. He called Yahoo!'s core business a "work in progress," which will also not help support the share price.
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Yahoo! has "made some good acquisitions, they have more viewers but they're not producing more profits," he argued.
The company is not as strong as Google and Facebook technologically. On the Internet, technology is everything and "Yahoo! doesn't have the best yet," Cramer concluded.
-- Written by Bret Kenwell in Petoskey, Mich.