Why Jim Cramer Is Adding To His PayPal Position

Jim Cramer announced plans to buy 25 shares of PayPal Holdings Inc (NASDAQ: PYPL) for around $191 per share Monday in a letter to members of CNBC's "Investing Club."

When a stock repeatedly faces selling pressure, investors should stay disciplined and spread out their buys, according to Cramer. That's what he is doing with PayPal.

"No matter your conviction in the fundamentals, you have to fight the temptation of buying every dip because you don't know when the sellers will finish," Cramer said.

"By sticking to our levels, we take the emotion out of a struggling, falling knife position whose fundamentals are not being accurately portrayed in the market."

Related Link: Why Jim Cramer Plans To Keep Buying PayPal Stock While It's Down

He remains positive on the outlook for PayPal because of its impressive growth rates and continued merchant adoption. He also pointed to the Venmo partnership with Amazon.com Inc (NASDAQ: AMZN) as a positive catalyst for the stock in 2022.

Beginning in 2022, Amazon customers will be able to check out using Venmo.

PYPL Price Action: PayPal has traded as high as $310.16 over a 52-week period. It's making new 52-week lows Monday.

The stock was down 2.7% at $188.26 at time of publication. 

Photo: courtesy of PayPal.