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Cramer & Link: Trim Apple, Buy Facebook

NEW YORK (TheStreet) -- As pointed out on Monday, TheStreet's Jim Cramer and Stephanie Link, co-managers of the Action Alerts PLUS portfolio, are in favor of owning Facebook (FB - Get Report)

However, the duo wanted to add to their Facebook position by trimming, but not selling completely, their position in Apple (AAPL - Get Report)

Cramer and Link said they like Apple because of its valuation, share buyback and upcoming products, but "see no near-term catalyst" justifying a large position in the stock. 

Facebook is another story however. The company has strong business momentum and continues to post impressive revenue growth, which was up 63% year-over-year in the fourth quarter. They also praised the recent acquisition of WhatsApp, although they admitted it was done at a lofty price.

Must Read: Do Buybacks Lead to Better Returns?

The deal will allow Facebook to expand its international reach, as well as expand its mobile product profile. They called the deal "a smart move for the long run." Link and Cramer concluded that WhatsApp could reach 1 billion users within two years, especially under Facebook's management. 

Get more of Cramer and Link's top picks in real-time. Click here to begin your free trial today!

At the time of publication, Cramer's Action Alerts PLUS portfolio had holdings in Apple and Facebook.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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SYM TRADE IT LAST %CHG
AAPL $109.27 -1.00%
FB $88.26 0.12%
GOOG $600.70 -0.92%
TSLA $241.93 -1.48%
YHOO $31.58 -2.95%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

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