Jim Cramer expressed skepticism about PayPal's recent trajectory, citing declining transaction growth and shrinking profit margins. The comments come as the company reports fourth-quarter revenue of $2.7 billion, below analyst expectations, and a 14% year-over-year drop in active accounts.
- PayPal reported fourth-quarter revenue of $2.7 billion, missing the $2.85 billion analyst consensus.
- Active accounts declined 14% year-over-year, signaling potential user attrition.
- Gross payment volume grew just 5% in Q4, down from 12% growth in the prior year.
- Operating margins fell to 22%, a 300-basis-point reduction from the same period last year.
- Cramer’s comments reflect broader investor unease about PayPal’s competitive positioning.
- The stock has underperformed the S&P 500 by nearly 18 percentage points over the past 12 months.
Jim Cramer voiced concern over PayPal’s current performance during a recent appearance, stating, "I think it’s not doing that well." His remarks follow the company’s latest quarterly results, which revealed a 14% year-over-year decline in active accounts, a metric investors closely monitor for platform health. Revenue for the fourth quarter totaled $2.7 billion, falling short of the $2.85 billion consensus estimate. This marks the third consecutive quarter of below-forecast revenue, raising questions about the company’s ability to retain users and drive transaction volume.