PayPal Holdings Inc (NASDAQ:PYPL) shares were trading lower Wednesday after the company announced the departure of CFO John Rainey.
Rainey will be leaving the company to join Walmart Inc (NYSE:WMT), which is great for the retail giant but may prove to be "problematic" for PayPal, according to Jim Cramer.
What To Know: The CFO transition comes after the company reported back-to-back weak quarterly results, Cramer said Wednesday on CNBC's "Squawk On The Street."
"If I am John and I get a call from Doug McMillon, do I say, 'hey, you know what I really kind of got this really great job?' No, I take it because Walmart is one of the most incredibly important roles," he said.
The move makes sense for Rainey and Walmart, but something is missing, Cramer said: "Why didn't PayPal affirm their guidance so that you don't think something's wrong?"
He noted that analysts have highlighted the lack of guidance following Rainey's departure and he believes analysts are asking the right questions.
CFO transitions are usually met with guidance and companies tend to keep management the same for a few months during the transition period, but that isn't the case here, Cramer said. He reiterated concerns over the company's consecutive weak quarters.
"So those are the negatives for PayPal."
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PYPL Price Action: PayPal has traded between $92.25 and $310.16 over a 52-week period.
According to data from Benzinga Pro, the stock was down 3.85% at $104.08 late Wednesday morning.
Photo: courtesy of PayPal.
