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.
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 RiskReversal.com.
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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