PayPal Holdings  (PYPL)  , the San Jose, Calif.-based financial technology giant, is a company worth owning shares in, said Jim Cramer, founder of TheStreet. However, analysts are slightly skeptical.

"Analysts on Wall St. are too old," Cramer said, adding that they do not use PayPal or Venmo, the peer-to-peer payment app it took on when it acquired its parent company, Braintree, in 2013 for $800 million. The companies are game-changers, Cramer said, whose offerings appeal to millennials.

PayPal is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells PYPL? Learn more now.

Several analysts have voiced concern about PayPal, given the increased entry of large competitors in the digital payments sector. An analyst note released by BTIG LLC ahead of the 1Q16 earnings release called PayPal a "very much 'show me' story."

However, PayPal surprised investors and analysts alike when it beat EPS estimates of $.35 by $.02. The beat was facilitated by a 31% year-over-year increase in total payment volume, vs. a TPV growth rate of 29% in 4Q15. Analysts also estimated 1Q16 revenue of $2.5 billion and were beat by a $2.54 billion revenue instead. The company also topped analyst predictions regarding volume of active customer and merchant accounts.

Following the earnings announcement, BTIG released another note, in which analysts Mark Palmer and Giuliano Bologna stated the reiteration of their "Buy" recommendation and price target of $48 based on 15 times their 2018E EBITDA of $3.89 billion discounted back at 10%, adding that "we continue to view PayPal as the most direct means by which investors can participate in the rapid global growth of mobile payments and e-commerce."

But in an analyst note released by UBS Research on Thursday, the firm said it felt less positive on the "continued take rate pressure from mix shift to large merchants and Braintree/Venmo" as well as a "higher mix of card and reduced take rates leading to ~380bps of transaction margin decline year-over-year." The note also included "comments around a mixed retail landscape" and lastly, "continued transaction/loan loss uptick despite PayPal Credit largely unchanged at ~2% of TPV."

However, Cramer added that PayPal CEO Dan Schulman "thinks young" and "has done everything right with PayPal."

PayPal shares are up nearly 1% in afternoon trading on Thursday, from their Wednesday close of $40.01.

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