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.

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