Jim Cramer, portfolio manager at Action Alerts PLUS, and research director, Jack Mohr sat down to talk about one of the charitable trust’s newest positions. PayPal (PYPL), a stock which was just spun off from its parent company, eBay (EBAY), ‘is an exciting new name in the portfolio that we’ve been waiting to pounce on,’ Mohr said. Having sold off their position in MasterCard (MA), which Cramer says was a ‘fabulous gain’ for the portfolio, they wanted to get back into the payments space. In 2002 eBay acquired PayPal, which at the time was its own publically traded company. On July 17th of this year, eBay and PayPal officially separated and became two separate, publically traded companies. PayPal shares entered the open markets on that following Monday, July 20th for $41.46 a share. PayPal was founded back in 1998 in Palo Alto, California by Telsa (TSLA) head, Elon Musk and venture capitalist, Peter Thiel among others. Mohr says that PayPal ‘is a marriage of technology and payments’ and Cramer calls it ‘the millennials credit card.’ Cramer also said that PayPal has made a lot of good acquisitions, were given a lot of cash by eBay, and ‘they can build up a franchise that I think will end up rivaling Visa and MasterCard.’
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