Jim Cramer Has a $50 Price Target on PayPal After Split From eBay
Jim Cramer answers Twitter (TWTR) questions from viewers on the floor of the New York Stock Exchange, and one focus was PayPal’s (PYPL) split from eBay (EBAY) today. Jim was asked whether to buy PayPal, and said he will be looking for $1.50 for earnings from the company after the split and he has bumped up his price target to a minimum of $50. Jim was also asked whether eBay might be the subject of a takeover from a company like Amazon (AMZN) or Alibaba (BABA), and said it’s always possible, but that’s not why you buy something. Jim said he doesn’t care for eBay, but he does think PayPal will rival Visa (V) and MasterCard (MA). Another viewer wanted to know whether Tesla (TSLA) should spin off its power division as an IPO. Jim said with Sun Edison’s (SUNE) merger of TerraForm Power (TERP) today, it shows you how powerful that group is. But he noted that Tesla is a cult stock, and people want to buy it regardless. Jim also said you shouldn’t jump in and buy Facebook (FB) at current levels and pointed out that Action Alerts PLUS has owned it since it traded in the mid-20s. Send your Twitter questions to Jim using #CramerQ.
