Apple Isn't the Only Hot Deal That Will Send PayPal Shares Soaring -- Jim Cramer Reveals
Jim Cramer wrote about the potential gains at PayPal Holdings Inc. (PYPL) - Get PayPal Holdings, Inc. Report weeks ago. Now others are starting to notice.
The PayPal "tree" continues to bloom, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on CNBC's "Stop Trading" segment.
What does Cramer mean? He pointed out that former CEO John Donahoe now runs ServiceNow Inc. (NOW) - Get ServiceNow, Inc. Report , which moved nicely higher Thursday after the company beat on top and bottom line earnings results. Shares are now up 52% on the year. This was a "really fantastic blowout," for ServiceNow.
But current PayPal CEO Daniel Schulman isn't doing all that bad himself. Shares rose 2.3% on the day after it too beat on earnings per share and revenue results, and boosted guidance. Like ServiceNow, PayPal stock is up more than 50% for 2017.
Schulman has "proved a lot of short-sellers wrong," he added.
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After recently adding a deal with Apple (AAPL) - Get Apple Inc. Report just a few weeks ago, PayPal also announced Baidu (BIDU) - Get Baidu Inc. Report and Bank of America (BAC) - Get Bank of America Corp Report as recent partners as well, Cramer pointed out. Analysts are taking note, too, with many positive reactions. Those at Goldman Sachs say shares still have about 20% upside despite the stock's big run already.
Cramer also highlighted an important trend: e-commerce. While many offline transactions still take place with cash and check, all online purchases are done with a credit or debit card. As the world continues to embrace e-commerce, the use of digital payments continues to increase and PayPal is the "biggest beneficiary," Cramer concluded.
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At the time of publication, Jim Cramer's Action Alerts PLUS had a position in Apple.
