"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."
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.