He has been pushing for the split for a long time, and he thinks PayPal needs its own currency because the electronic payments space has gotten very complicated and very competitive, particularly with Apple (AAPL) and its new Apple Pay mobile wallet.
Cramer says some people might not think Apple is all that competitive in this regard, but he points out that a user's account with Apple basically equates to a credit card now. He thinks younger people who are trying to decide what type of credit card to open do not need to open a PayPal account.
Cramer thinks the move is poorly timed but better late than never, and he says eBay is now fully reflecting all the good news.
TheStreet Ratings team rates as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."