NEW YORK (TheStreet) -- On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, was taking a look at Rackspace Hosting (RAX - Get Report), which is up over 15% in early Friday trading.
Cramer said the company's latest earnings report showed some optimism, with cash flows improving. Analysts at J.P. Morgan recently warmed up to the stock too, he added.
Then today's news hit: Rackspace Hosting has reportedly hired Morgan Stanley (MS) to help sell the company.
The stock seems "on its way to $50!" Cramer exclaimed.
The company's new deal with NBC is "really disappointing," Cramer said. Although costs are going up, management's credibility is shot, and revenues aren't as high as previously expected. Cramer called today's price action an "overreaction."
"They still have a roadmap, it's just going to take longer," he said, concluding that there seems to be some value in the stock near current levels.
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-- Written by Bret Kenwell in Petoskey, Mich.