Cramer Quick Take: eBay Should Just Change Its Name to PayPal
NEW YORK (TheStreet) -- What's the best way to boost shares of eBay (EBAY) after the company reported worse-than-expected earnings? Change the name of the company to PayPal, Jim Cramer told Lindsey Bell at TheStreet.com Thursday.
Cramer said eBay is currently covered by a cohort of Internet analysts who don't truly understand eBay, nor the importance of its PayPal payments division. He said these analysts who set the earnings expectations really shouldn't, as they don't know how to value the company.
Cramer said PayPal is the younger person's credit card, and with that division growing at 25%, it needs to be valued like a financial, not an Internet, company. He said the quick fix would be to change the name of the company to PayPal, then watch coverage move to analysts that understand financials. The result, he said, would be a $16 stock almost overnight.
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-- Written by Scott Rutt in Washington.
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