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Analysts Believe International Business Machines Corp. (IBM) And Google Inc (GOOGL) Will Show Spikes Soon

The Fast Money traders announced on CNBC their picks for the day. International Business Machines Corp. (NYSE:IBM) is Dan Nathan’s choice and Google Inc (NASDAQ:GOOGL) caught Karen Finerman’s firm’s interest. The companies are traded at about $191.6 and $591.2 respectively and both have experienced a slight fall in price during the last two days.

International Business Machines Corp. (NYSE:IBM)

It seems that the IT sector is heading for a rebound as companies within it are expected to see a bump in valuation. Opting for a safer way to profit from the upcoming change of events, Dan Nathan decided to purchase put options for the International Business Machines Corp. (NYSE:IBM) stock.

“Yea, IBM, I got some short exposure through puts, looking at October Today,” said Dan Nathan, Co-Founder and Editor of

International Business Machines Corp. (NYSE:IBM) has reported operating (non-GAAP) net income of $4.3 billion, up 21% from last year’s value for the second quarter, operating (non-GAAP) profit margin  of 49.8 %, up 10 basis points or 0.1%, and a thriving growth for its mobile revenues, although total revenues have experienced a slight decline of about 2%, down to $24.4 billion.

Google Inc (NASDAQ:GOOGL), on the other hand, has declared non-GAAP net income to be $4.18 billion, larger by some 24% than the value for the same period one year ago. It also presented an increase in its sites’ revenues by approximately 23%, up to $10.94 billion, compared to second quarter 2013.

“I’m old school, for me that’s Google. Either kind, the G or with the L, however way you like it. It doesn’t matter,” said Karen Finerman, CEO of Metropolitan Capital Advisors and a “Fast Money” contributor.

International Business Machines Corp. (NYSE:IBM) and Google Inc (NASDAQ:GOOGL) have a pretty similar pattern of price shifts, so it’s comprehensible why both companies would be traded in similar periods. The major difference is the fact that the latter company has a beta of 1.16, whereas the former’s statistic is about 0.64. In essence this just translates into Google Inc (NASDAQ:GOOGL) being a more volatile asset than International Business Machines Corp. (NYSE:IBM).

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