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TheStreet Open House

'Fast Money' Recap: Amazon, Microsoft Power Market

NEW YORK (TheStreet) -- The broader markets rose on Thursday once again as some big name companies reported earnings. 

Amazon (AMZN) beat its revenue estimates and the stock again went higher. Guy Adami, managing director of, said Wall Street continues to cut the company slack and advised investors not to buy the stock on Friday.

Tim Seymour, managing partner at Triogem Asset Management, said no other company is close to what Amazon has in terms of its competitive edge, but because of valuation he is not a buyer. 

Brian Kelly, founder of Brian Kelly Capital, reiterated that investors should not buy on Friday and suggested those who are long sell half their position to take profits. 

Microsoft (MSFT) beat on the top and bottom line. Seymour said the quarter was good and the company seems to be doing well in the enterprise software business. 

Kelly said he was surprised by the move because the company lacks product innovation. He added that investors will probably be safe to buy the stock.

Adami said he would not be a buyer of Microsoft, but instead suggested using this pop to take profits.

Colin Gillis, senior tech analyst at BGC Financial, was a guest on the show and said Microsoft reported a nice quarter but future quarters will likely be more difficult. The March quarter will pressure margins because of the Nokia (NOK) deal. Gillis said Stephen Elop, the former CEO of Nokia, would be the best pick for the next CEO for Microsoft. 

Outerwall (OUTR) beat on the top and bottom line. Kelly said it was a great quarter but he wouldn't buy the stock until it pulled back.

Adami concurred, but added that the pullback might take a few days because the stock has such a high short interest. 

Deckers Outdoor (DECK) beat earnings per share estimates because input costs are going down, Adami said. He added the move higher will likely be sustained for a while because the stock's valuation isn't that bad and there is a high short interest.

Kelly suggested Icahn Enterprises (IEP) could be a good way to invest in hedge fund manager Carl Icahn, but admitted  the time to buy has passed for now with the stock up 98% for the year to date.

Karen Finerman, president at Metropolitan Capital Advisors, added that Icahn's activist roles, such as in Netflix (NFLX), Herbalife (HLF), and Apple (AAPL), make up only a small part of Icahn Enterprises. The rest is majority ownerships in other companies. 

She is long Sotheby's  (BID) because of its positive catalysts and noted it has several activist investors -- Icahn not being one of them.

Symantec (SYMC) was the first stock on the show's "Pops & Drops" segment after falling due to disappointing earnings. Mike Khouw, managing director and primary strategist at DASH Financial, said the company seems likely to continue struggling. 

Teck Resources (TCK) jumped 3% and Seymour said investors could stay long. 

PulteGroup (PHM) popped 7% and Kelly said he likes the stock but suggested waiting for a pullback. 

Timken (TKR) plunged 12% and Finerman said investors are lucky the stock only fell that much considering the company's terrible guidance. 

McKesson (MCK) leapt 5% and Adami said it's hard to buy after the jump. He suggested there will be more upside in the coming days.

Adami said all of this year's pullbacks in Cerner (CERN) have been buying opportunities and the stock will be higher by next week. 

Tobias Levkovich, chief U.S. equity strategist at Citigroup (C), was a guest on the show and said he expects a 100-point decline in the S&P 500. While he has a 2014 target of 1,900, the earnings story isn't strong enough to justify today's current levels. Financials and information technology are his favorite sectors.

Sam Hamadeh, CEO of PrivCo, was a guest on the show and said the $10 billion valuation on Twitter is far below what he considers a "fair valuation," which he thinks is closer to $17 billion. The company announced it plans to sell 70 million shares at $17 to $20 per share.

Finerman, Kelly, Khouw and Adami all concurred they would be buyers of Twitter's IPO, while Seymour will not. 

For their final trades, Kelly said to short the iShares MSCI Brazil Capped ETF (EWZ) Khouw is buying F5 Networks (FFIV) while Finerman is buying Liberty Interactive (LINTA). Seymour said to buy Caterpillar (CAT) and Adami is a buyer of Cerner. 

-- Written by Bret Kenwell in Petoskey, Mich.

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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