Jim Cramer's Stop Trading: Buy Facebook After It Declines on Alibaba IPO

NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, advised investors not to pick up shares of Facebook (FB) right now.

Cramer noted that a Citigroup analyst said the social media company has the potential to exceed the current estimates.

Although Cramer agreed that Facebook is poised to do very well because targeted advertising is so effective, he expects shares to go lower later, offering a better opportunity to buy the stock.

"You're going to get a chance to buy it, I think, when the big mutual funds sell stocks to take in Alibaba."

Growth stocks, such as Facebook, Twitter (TWTR) and Amazon (AMZN) will likely see temporary selling as fund managers look raise cash in order to buy shares of Alibaba. He advised investors to wait before buying Facebook.

Elsewhere, an analyst at Stifel Nicolaus suggested that WhiteWave Foods (WWAV) will be bought out by a beverage company.

"Whoever buys them will instantly become a lot more natural and organic," Cramer commented.

At the time of publication, Cramer's Action Alerts PLUS owned shares of Facebook and Twitter.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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