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• Jim Cramer explains why he's cautious on PayPal Holdings.
• BofA analyst Jason Kupferberg shares his view on $PYPL.
• PayPal stock is down over 10% today following its Q4 print.

PayPal Holdings Inc (PYPL) is down over 10% today following its fourth-quarter earnings print – but famed investor Jim Cramer remains cautious of capitalizing on the sell-off.

Cramer shares his view on PayPal stock

The fintech stock is being punished on Thursday primarily because PayPal failed to live up to expectations for the future guidance.

What it suggests, as per the Mad Money host, is that “there’s no quick fix” for the payments giant. Its CEO Alex Chriss is telling us that “this is going to be very hard for us to get our arms around”, he added.

PayPal also confirmed on the earnings call last night that it will not offer annual guidance moving forward – which doesn’t inspire a lot of confidence in its shares either.

PayPal stock is now down nearly 30% versus its 52-week high.

2024 will likely be a transition year for PayPal

Jim Cramer is choosing to be cautious about PayPal even though its chief executive recently said the payments giant will “shock the world” (read more).

The Nasdaq-listed firm has also launched new AI features and announced plans of lowering its global headcount by 9.0% in recent weeks.

Jason Kupferberg – a senior Bank of America analyst does expect the company’s newer initiatives to eventually catch traction. But 2024, he said in an interview with Yahoo Finance today, will remain a transition year for PayPal stock.

It takes time to turn around a big battleship. PayPal is putting more energy and execution effort behind newer initiatives. However, it’s a very competitive landscape.

It was a dog of a day for Paypal's stock post earnings and Mizuho's Dan Dolev brought the props to go along with his analysis.@tanvirgill2 @willkoulouris @ddolev @mizuhoamericas $PYPL $PINS pic.twitter.com/JCBnN5pucI

— CNBC's Street Signs (@StreetSignsCNBC) February 8, 2024

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