Jim Cramer on Why Yahoo! (YHOO) Should Buy Yelp with Alibaba IPO Windfall

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says after the Alibaba IPO, Yahoo!  (YHOO) should buy Yelp  (YELP) with its windfall rather than Twitter  (TWTR), though the social media company is a possibility.

Cramer notes Yahoo! already has a solid relationship with Yelp, the world's largest Yellow Pages. He believes Yahoo! could elevate Yelp's stock to the level it was before this recent sell off, perhaps $102 or $103, and thinks an $8 billion deal would be very good for Yahoo!.

Must Watch: Jim Cramer Says Yahoo Should Buy Yelp With Its Alibaba Payday

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Separately, TheStreet Ratings team rates YAHOO INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate YAHOO INC (YHOO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Separately, TheStreet Ratings team rates YELP INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate YELP INC (YELP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its disappointing return on equity."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Asked if WWE  (WWE) is becoming the new Netflix  (NFLX) with the WWE Network, Cramer points out the initial numbers on the WWE Network are not great. He admits he missed the major move in WWE stock but says he does not want to own WWE or Netflix shares right now.

Must Watch: Jim Cramer Says Yahoo Should Buy Yelp With Its Alibaba Payday

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Separately, TheStreet Ratings team rates WORLD WRESTLING ENTMT INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate WORLD WRESTLING ENTMT INC (WWE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Separately, TheStreet Ratings team rates NETFLIX INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Finally, Core Laboratories  (CLB) has lowered its guidance, and Cramer notes the company has talked about a slowdown in drilling programs in the Gulf of Mexico. The company has also noted a decrease in coring in other American areas, but Cramer maintains the Permian has not been affected and believes investors should buy Pioneer Natural Resources  (PXD), Cimarex  (XEC), EOG Resources  (EOG) and his personal favorite, Anadarko Petroleum  (APC).

Must Watch: Jim Cramer Says Yahoo Should Buy Yelp With Its Alibaba Payday

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Separately, TheStreet Ratings team rates CORE LABORATORIES NV as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CORE LABORATORIES NV (CLB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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