NEW YORK (TheStreet) -- On Tuesday, Alibaba (BABA) reported its first quarterly earnings since it became a publicly traded company. TheStreet's Jim Cramer says it was a blowout quarter but notes the Chinese e-commerce giant put one page in its report to say it would not manage towards margins.
This caused people to panic a bit and compare the company to Amazon.com (AMZN) . Cramer says he feels the opposite and thinks the margin decline may actually be a low. He does not think margins will continue to go down and notes the company made several acquisitions.
He instead wants to focus on revenue growth, which he called "spectacular." Cramer says Alibaba must be valued like Facebook (FB) and therefore must be able to get a multiple expansion.
Cramer thinks the stock could hit $120. He says he wishes Alibaba did not have a slide, but he thought the company did a good job explaining it by pointing out it had to do a lot of investing for this quarter, which may not be the case for the next quarter.
Cramer says if you buy Alibaba now, then you have Singles Day in China coming up on November 11, which he likens to "every single holiday combined in our country." However, he says the stock is not for him because it is too expensive, but he thinks it will be good for the growth managers.