Jim Cramer's Mad Dash: Buy Yahoo! Ahead of Alibaba IPO

NEW YORK (TheStreet) -- Shares of Yahoo! (YHOO) are up roughly 2% to start the week, after Gene Munster, managing director and senior research analyst at Piper Jaffray, upgraded the stock to buy from hold and raised its price target to $43 from $37. 

On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, added that Munster doesn't believe the Alibaba (soon to IPO as BABA) valuation is priced into Yahoo!, which owns a 22.6% stake in the Chinese e-commerce company. 

Cramer said that this summer will be filled with analysts and investors playing the "guessing game," trying to figure out Alibaba's valuation and what it means to Yahoo!. 

Along with wondering how much Alibaba would be worth, he asked how CEO Marissa Mayer would spend the money. 

Co-host David Faber said there is a good chance investors will get to see another earnings quarter from Alibaba's business before the IPO, when Yahoo! reports its earnings results and sheds some light on Alibaba. 

"My advice," Cramer said, "be long Yahoo!."

-- Written by Bret Kenwell in Petoskey, Mich.

Profit on Call Options: Coca-Cola, ExxonMobil, Home Depot, Pepsi

Ford and GM Sales Decline as May Steals Days from June

Bullard: A Hawk at the Fed?; Parsing Markit Data: Best of Kass

Six Flags Rewards Investors Post-Bankruptcy

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

If you liked this article you might like

Equifax Breach Reveals Frightening Truth: Companies Can Delay Disclosing Hacks

How Alibaba's 'Genie' Smart Speaker Can Overcome the Amazon Echo's 3-Year Head Start and Still Win

Facebook, Apple, Netflix and Google Have Caught the Flu -- Here's How Not to Get Killed By It

How to Play the Coming 'FANG Flu'

Travis Kalanick and the Terrible, Horrible, No Good, Very Bad Week