NEW YORK (TheStreet) -- On CNBC's "Cramer's Mad Dash" segment, co-host David Faber and TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, were taking a look at Alibaba's recent quarterly results.
The e-commerce giant showed that its growth rate was slightly weaker than many investors had expected, causing them to "pause" when considering its overall valuation, Faber said.
He "hoped" that Yahoo! (YHOO), which owns a 22.6% stake in Alibaba, would use the IPO proceeds to buy a "series of companies making it more relevant."
If Yahoo! receives less money from the IPO, Cramer reasoned that it may be less relevant in the future.
And although growth may have slowed in the first quarter for Alibaba, it still has staggering results, including 52% revenue growth and a 305% increase to operating income. It also showed a mind-blowing 691% growth in mobile revenues.
Cramer reasoned that Yahoo! is still a buy if the valuation rings in at $200 billion, below the high-end estimate of $250 billion that some analysts had expected before today's results were released.
-- Written by Bret Kenwell in Petoskey, Mich.