NEW YORK (TheStreet) -- The S&P 500 was able to bounce back on Thursday after several disappointing trading sessions.
Guy Adami, managing director of stockmonster.com, said Amazon had good margins, but it was concerning that it missed on the top and bottom lines. He suggested that investors not short the stock. It's surprising that Google's up this much in after-hours trading, considering the quarter was somewhat "benign." he said.
Tim Seymour, managing partner of Triogem Asset Management, said that all of the talk about Amazon and the holidays was super-positive, which is why investors were likely too optimistic going into the quarter. He was a buyer of the stock on weakness.Brian Kelly, founder of Brian Kelly Capital, said he, too, was surprised by the disappointing results from Amazon, considering all the good news about online shopping. He added that other retailers appear to be eating into Amazon's market share. Karen Finerman, president of Metropolitan Capital Advisors, said Amazon has never traded on valuation and is unlikely to start doing so now. She was not a buyer of AMZN. She opted to stay long shares of Google and did not plan on buying more or selling it. Finerman also said it was good for Google to sell its Motorola Mobility unit. Michael Pachter, managing director of Equity Research at Wedbush Securities, was a guest on the show. He has a $330 price target on Amazon because the stock seems too far ahead of itself. He said management made the mistake of letting the stock trade up too high, when the results weren't enough to beat Street estimates. He concluded that 2014 would be like 2013 for Amazon, where revenues grow strongly, but earnings per share do not.
Martin Pyykkonen, senior analyst at Wedge Partners, was a guest on the show. He said that Google had a very good quarter, fundamentally speaking. The company seems to be firing on all cylinders and still trades at a favorable valuation, considering its growth. Chipotle Mexican Grill (CMG) traded higher in the after-hours after reporting earnings. Adami said the report was good and the company had strong operating margins, but suggested taking profits based on valuation.
Seymour agreed and said he would be surprised to see CMG move through resistance near $550. Kelly said Instagram has been huge for Facebook (FB), which soared 15% on Thursday from strong earnings. However, the stock traded poorly after the open and he suggested that investors give it three days before getting long, and then use the three-day low as their stop-loss. Seymour said FB is experiencing huge growth in mobile and the company should continue dominating the space.
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