Investors should buy Yahoo's stock because CEO Marissa Mayer is executing the right moves for the company, CNBC's Jim Cramer said Friday.
"This is a phenomenal situation that Marisa Mayer, who has done an amazing steward of capital allocation, who renegotiated the Alibaba deal, [which] is the most important thing you could do," Cramer said on CNBC's "Squawk on the Street." "I'm watching Tumblr. I like what she's doing with Tumblr. I've actually said that there's negative worth after Alibaba, and that's ridiculous."
Cramer made his remarks a day after the company announced it will buy back $2 billion in shares. Yahoo shares were up about 2 percent in early trading Friday. Click here to see where the stock is trading now.
"The buyback has been very additive, and I think the company, when the smoke clears, it will be an important company that can make a lot of acquisitions," Cramer said. "This stock should be bought. I don't really care for Alibaba's stock."
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Nevertheless, Cramer also said investors will have to be patient when buying the stock. "Does she have profitable growth for everyone? Not yet, but she's certainly going towards that way."
DISCLOSURE: Cramer's trust did not own Yahoo stock when this article was published. CNBC has a content-sharing partnership with Yahoo's finance site.