What do you think about PayPal and Square?
"First, hardly a day goes by when some analyst doesn't raise his or her price targets for a handful of stocks. I will mention two that I like very much so no one thinks I am bashing anyone: Square (SQ) and PayPal (PYPL). Both of these fine companies are truly coming to the fore here, Square because of its creative ways it helps small and medium-sized businesses centered around the point of sale technology and PayPal because of its incredible digital and mobile payments platform. PayPal's stock is up 57% this year and is now valued at $200 billion. Square's rallied 66% and is worth $45 billion," wrote Cramer.
"Now if you called on the Lightning Round of Mad Money and asked me about what I thought of these companies I would have to say they are best of breed of the new world. But here's what I would not have time to say: I worry that they just go up and up for the same reasons: price-tag boost upon price-tag boost," he continued. "I don't have even an inkling that they are going up because of earnings or even sales. It would be terrific to see that real take-off but what's been the reality here? When Square reported in May it missed the gross payment volume estimate, had a slight beat in revenues, and missed the earnings estimate by a mile, 2 cents versus 10 cents. It also pulled its guidance. For that, the stock's been rewarded with a dramatic move upward, $63 to $104."
Jim Cramer said that he would advise investors to hold Square and PayPal for now.
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