Jim Cramer explains how to tell a red flag from a buying opportunity when a stock falls

Skyworks Solutions and PayPal demonstrate why a big decline means different things across industries right now, Jim Cramer said.

PayPal should’ve been the winner between the two, but it continued to fall based on its industry positioning, he explained.

Whether a huge decline in a stock is a buying opportunity or a major red flag largely depends on the industry right now, Jim Cramer said Wednesday.

That was the case for Skyworks Solutions and PayPal, which both saw shares tumble on the back of disappointing earnings reports.