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TheStreet Open House

'Fast Money' Recap: The Fed and Facebook

NEW YORK (TheStreet) -- The broader market ended slightly lower after the Federal Reserve announced it is is leaving its monetary policy unchanged. 

Facebook (FB) crushed top- and bottom-line estimates. Tim Seymour, managing partner at Triogem Asset Management, said the bar was incredibly high but the company cleared it with a great quarter. He wouldn't be a buyer on Thursday but would wait for a pullback to the $49 area. 

Brian Kelly, founder of Brian Kelly Capital, also said he wouldn't chase the stock and asked what the next catalyst would be to push shares higher. 

Mike Khouw, managing director and primary strategist at DASH Financial, said the stock actually isn't more expensive, despite the after-hours pop higher, because the company earned so much more money than analysts had expected. 

Stephanie Link, co-portfolio manager of the Action Alerts PLUS portfolio, said she had already trimmed some of the Facebook position leading up to the report, but after seeing these results would not trim on the pop higher. She noted Facebook grew in all regions.

Robert Peck, managing director at SunTrust Robinson Humphrey, was a guest on the show and said Facebook's ad revenue and mobile growth were very impressive, and margins surprised to the upside. He pointed to video ad revenue, the monetization of Instagram and graph search as potential catalysts. 

Seymour was a buyer of LinkedIn (LNKD) and Kelly was a buyer of Twitter. Dan Nathan, co-founder and editor of riskreversal.com, preferred the Global X Social Media Index ETF  (SOCL) and Karen Finerman, president of Metropolitan Capital Advisors, was a buyer of Google (GOOG).

Starbucks (SBUX) beat on earnings but traded slightly lower after hours. Seymour said he would buy the dip because the company has so much future potential. Kelly concurred.

Finerman suggested buyers wait for a slightly deeper pullback before getting involved. 

Nathan said he really likes the stock but can't be a buyer because the valuation is too high.

Tom Lee, chief U.S. equity strategist at J.P. Morgan (JPM), was a guest on the show and said he is comfortable being long equities as long as the 10-year Treasury yield remains below 3%. He advised buying momentum names like Facebook, Netflix (NFLX) and other stocks that have positive earnings revisions, which generally outperform going into the end of the year. Some sectors he likes include energy, technology and industrials. 

Weight Watchers (WTW) plunged after cutting its dividend, despite beating on earnings. Finerman warned investors the stock isn't necessarily cheap since things are going so bad. 

Newport Mining (NEM) reports earnings on Thursday. Seymour said the worst is over for the company but it's not his first choice for a mining stock. 

American International Group (AIG) also reports on Thursday. Finerman said the easy money has already been made and earnings will likely be more difficult going forward.

Nathan said investors shouldn't chase Expedia (EXPE) on Thursday, which is surging after its earnings report.

Taser International (TASR) beat on the top and bottom lines. Co-founder and CEO Rick Smith was a guest on the show and said there's been a "tipping point" in its business, where sentiment is now very positive for its products rather than harshly against it as in the past. He added the company is able to discount its tasers because it can sell a cloud-based software service as well, unlike its competition. 

Seymour said he is neutral on the stock after the huge 15% move higher. 

For their final trades, Seymour is a buyer of Cummins (CMI), Finerman said to buy North Atlantic Drilling (OTC: NATDF) and Khouw is buying eBay (EBAY). Nathan said to buy EXCO Resources (XCO) and Kelly is a buyer of Apache (APA).

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

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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