Shares of Twilio (TWLO) - Get Report are down a little more than 5% Friday, but that's better than the 8% slide the stock saw in premarket trading after the company announced a seven million-share follow-on offering. 

The offering is being priced at $40 per share, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. 

If the stock finds support at $40 and is able to rally, then that bodes well for it going forward. That's an important level, Cramer said, pointing out Acacia (ACIA) - Get Report , another recent red-hot IPO stock, wasn't able to hold its recent add-on offering price. 

Despite the recent slide, Twilio is an "excellent" company, he added, explaining that it builds the behind-the-scenes technical infrastructure behind companies including Uber, Airbnb and WhatsApp. 

While the valuation may seem high, it's got excellent growth and the best growth of this year's IPO class, Cramer concluded. 

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.