NEW YORK (TheStreet) -- TheStreet's Jim Cramer weighs in on what he calls "Facebook (FB) vs. Alibaba," with Facebook as the shorthand for all the stocks that investors are selling off in order to buy Alibaba stock after the Chinese e-commerce company's IPO.
Cramer says Alibaba has roiled everything from Starbucks (SBUX) to Facebook to Google (GOOGL) to Apple (AAPL) but adds, "when you see it done, I think it's going to be bullish." He says these stocks have all broken down for one particular reason: they are sources of funds that allow investors to get a big position in Alibaba in both the underwriting and the after-market. Cramer notes the funds making these moves do not have the necessary cash on hand and can always circle back to the stocks once they get their allocation.
Therefore, he is creating a bearish and bullish thesis. Cramer says the moment you feel the selling is over to be able to buy Alibaba, then you should return to Facebook, Microsoft (MSFT) , Google and the like because they will be okay after the Alibaba deal is done.FB data by YCharts
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