Is PayPal the JPMorgan of 100 Years Ago? Jim Cramer's Approach to the Stock

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During his monthly Action Alerts PLUS members-only call, Jim Cramer took the opportunity to explain why the AAP portfolio began a new position in PayPal  (PYPL) - Get PayPal Holdings Inc Report after selling the stock.  

Video Transcript: 

One more tech but the fintech variety. PayPal. Remember we bought PayPal stock. We sold after a really good game because we knew it had become a changed story. And I preached you over and over again. I said look at PayPal over and over again, that we cannot be dissuaded about buying a stock back just because we sold it. That makes no sense. We bought it because of a nascent separation story from eBay  (EBAY) - Get eBay Inc. Report where I thought it could do better without eBay. A lot of people doubted that.

It had grown to the first global unregulated bank run by a man, Dan Schulman, who wants to bank the unbanked of which there are about two billion people he's gunning for, and become the partner of every bank with a huge regulatory apparatus he doesn't need to be concerned about because PayPal is not a depository institution. I often feel that PayPal is for the younger generation like my kids as JPMorgan  (JPM) - Get JPMorgan Chase & Co. (JPM) Report was once 100 years ago.

That unique position, monetization of them though, they're going to turbo charge next year's numbers. So it was vital that we got back in to catch the next move higher. Can PayPal become the largest non-bank financial in the world? I think it's destined to be so because it is at heart a tech company with one truth, the client is all that matters.

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