Jim Cramer on PayPal: "I Think It's Not Doing That Well"
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the stocks Jim Cramer Recently Discussed. During the lightning round, a caller asked about the stock, and Cramer replied:
Well, I mean, people keep saying that it’s ready for a takeover bid. I think it’s not doing that well, and I don’t like to recommend stocks on the basis of takeovers. It always seems to be the wrong thing for me to do.
PayPal Holdings, Inc. (NASDAQ:PYPL) runs a digital payments platform that lets consumers and merchants pay, send, and receive money online and in person. The company’s services include payments, checkout, credit, and money transfer products. Cramer discussed the stock during the episode aired on January 5, as he remarked:
Finally, the fifth-worst performer in the Nasdaq-100 was a real conundrum, PayPal. It was down more than 31% last year. PayPal’s classic payment offerings have mostly become commoditized, and the company’s been late to new technologies like buy now, pay later or stablecoins. That said, PayPal just keeps growing, and the stock’s gotten very cheap. You know, this thing only sells for 10 times this year’s earnings estimates. So far, that hasn’t mattered much to date, but maybe 2026 is the year when PayPal becomes too cheap to ignore. I am flabbergasted about how poorly the stock has acted under not just one, but two different CEOs for multiple years now.
While we acknowledge the potential of PYPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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