He thinks it will be a great deal and if the Chinese e-commerce company prices its IPO at $70, which Cramer thinks is a possibility, then it could pop up to $75. If that happens, then he thinks Yahoo! (YHOO) remains undervalued at $43.
One question asks how to play Yahoo! and Baidu (BIDU) in light of the Alibaba IPO, and Cramer says Baidu is a great company all on its own. Investors could sell Baidu stock in order to buy Alibaba, which Cramer says would be a great buying opportunity because Baidu has a lot of strength, as does Vipshop (VIPS) .
As for Yahoo!, Cramer points out the enterprise value of zero, which he says is a mistake. This is why he says Yahoo! remains a good situation.
Next, Cramer lists the stocks he fears would be sold off by investors in order to raise money for the Alibaba IPO. These include Netflix (NFLX) , Tesla (TSLA) , Celgene (CELG) , Gilead (GILD) , Apple (AAPL) and Google (GOOGL) . Cramer notes Apple should have gone up much more on news of the record number of iPhone pre-orders.