This was the biggest surprise after PayPal results, Jim Cramer says

CNBC's Jim Cramer was surprised after Piper Jaffray's Gene Munster opened the door for a change in his PayPal thesis.

"He's been very negative on PayPal. He started talking about his negative thesis being derailed," Cramer said Thursday on "Squawk on the Street."

"This guy has been down there giving them the business every single time. [CEO] Dan Schulman delivering, delivering, delivering; Munster slamming, slamming, slamming."

Munster reiterated his "underweight" rating on the stock but raised his price target slightly, to $34 from $33, after PayPal reported quarterly results.

"PayPal's new app has in-store payments functionality, which is a large opportunity for the mobile wallet. While this has the potential to derail our thesis of existing mobile POS wallets (Apple Pay, Samsung Pay, Android Pay) gaining a following and migrating users into mobile web payments, we believe it is too early to call PayPal a winner in mobile POS," he said in a Thursday note to clients.

On Wednesday, the digital payments firm posted first-quarter adjusted earnings per share of 37 cents on revenue of $2.54 billion. Analysts polled by Reuters expected the company to report earnings of 35 cents on revenue of $2.50 billion.

The stock was up more than 0.15 percent Thursday and closed at $40.07.

PYPL this year

Disclosure: Cramer's trust owned PayPal stock when this article was published.