Stephanie Link: New Data Deal is Good for IBM, Better for Twitter

IBM and Twitter announced a new partnership that will integrate Twitter’s data into IBM’s cloud-based analytics, customer engagement platforms and consulting services. Stephanie Link, Co-Portfolio Manager of Action Alerts Plus, tells TheStreet’s Options Profits, Jill Malandrino, this deal is positive for IBM, but more so for Twitter because it means more to them as it is a smaller company and operation. Twitter has been under pressure following earnings due to the business model and end market growth. Link believes the market place wants to hear how the company will grow and a key catalyst to that will the Twitter analyst day in November. It is reminiscent of the pressure Facebook was under when it first came public. Link is a buyer here due to the dramatic sentiment shift and risk/reward scenario. This is why Link likes to own a basket of stocks in technology like Action Alerts Plus portfolio does, including Facebook, Twitter and Google, to balance the investments.