Microsoft or Twitter, which is the better tech play?
Twitter (TWTR) is trying to recover in Thursday’s trading after collapsing more than 25% this week after reporting disappointing results and outlook. To make the matters worse, the weak results were leaked ahead of schedule.
Despite shares trading below $40 a share, Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital Group, with $1.7 billion in assets under management, has no plans of buying at these levels saying “at this point, we don’t think Twitter is unloved enough for us.”
Neither Forrest nor Fort Pitt Capital Total Return Fund (FPCGX) have ever owned Twitter. But she is a user and finds utility in the social microblogging site but is not sure if advertisers do. Forrest wonders how advertisers can look at Twitter and say ‘yes, that’s a space I need to be in to promote my brand and to promote my presence online.’
Get the Latest Market Data and News with the Yahoo Finance Ap
Caughey said as "long-term believers in technology," her fund doesn’t view social media stocks to belong in the tech sector but in media, as content providers. “Consumers are really quirky technology consumers and we would rather not try and figure out what the ‘cool' tech is and when it’s no longer going to be cool," Caughey cautioned.
Microsoft (MSFT) is a tech stock the fund manager does like and is the largest technology holding in her fund. Caughey thinks Microsoft “has in the past been a little misunderstood” and is a good corporate IT play.
IBM (IBM) and Amazon (AMZN) are other stocks Caughey believes will “benefit from companies putting data into the cloud.” She thinks it’s a logical move, “who better to help a customer move the right data at the right time to the cloud than the very company that helped build the datacenter!”
More from Yahoo Finance
Stealth signs of consumer strength emerges amid earnings
