PayPal Holdings (PYPL) declined Monday after MoffettNathanson cut its rating on shares to market perform from outperform (hold from buy), forecasting continued "lackluster" gross-profit growth under Alex Chriss, who is set to become the new CEO later this month. The analysts slashed their price target on the stock to $75 per share from $85.
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CNBC's Jim Cramer agrees with the call, adding that investors should ditch these newer fintech names like PayPal altogether. "Stay away from every single one of them," Jim said, adding older financials like Mastercard and Visa are doing "incredibly well." PayPal has faced immense competition from Apple's (AAPL) popular digital payment product, Apple Pay, as well. (Apple is one of the CNBC Investing Club's "own it, don't trade it" stocks. Nvidia is the other one.)
Shares of PayPal have dropped nearly 11.5% year-to-date, while Mastercard and Visa have surged 19% and 17% since the start of 2023, respectively.
Here's a full list of the stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club.