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NEW YORK (TheStreet) -- Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.
AOL (AOL): "Sometimes you just have to believe," Cramer told viewers, as he dove into the former dial-up Internet giant that's reinvented itself as a search and advertising platform, only to receive a $50 a share takeover bid from Verizon (VZ).
When AOL reported on Monday, it posted terrific numbers, with video, mobile and advertising segments all performing well.
But then on Tuesday, an analyst downgraded AOL from hold to sell, citing its accelerating decline in dial-up subscribers. What the analyst failed to consider however, is that dial-up doesn't matter. What matters is video, mobile and AOL's advertising platform.
For all those who didn't believe and sold on that recommendation missed out on today's $50 a share bid by Verizon, a full $11 a share higher than where they were trading just yesterday.
That's why sometimes you have to ignore the skeptics and just believe that the companies behind the stocks in your portfolio know what they're doing, Cramer concluded.
IBM (IBM): In an exclusive interview, Cramer sat down with Martin Schroeter, CFO of IBM, at the home of Watson, their new cloud-based analytics platform.
Schroeter explained IBM builds solutions that solve clients' most difficult problems. Watson is just the latest tool to help them do that and represents several hundred patents. IBM currently has a $17 billion analytics business and Watson is being plugged into that business with an ecosystem that its partners can build on.
In the case of health care, which will be Watson's first task, the system can scan over 12 million medical journal articles and make correct diagnoses in just hours versus weeks. Watson's user-friendly output is then made available to doctors on an iPad. Watson can see patterns that humans simply can't, Schroeter said, because it scans all the data and not just a sub-set of the data.
Watson will also soon be put to work analyzing social media feeds, interpreting trends and making predictions as it scans millions of posts around the globe in multiple languages. Here, too, Watson is able to spot trends in mountains of data that humans couldn't possibly see by themselves.
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