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TheStreet Open House

'Fast Money' Recap: Earnings Season Volatility

Stock quotes in this article: AMZN, MSFT, SBUX, NOK, P, V, LVS, WYNN, BIDU, UA, MU, AET, UAL, DHI, APC, DECK, SPWR, GOOG, BAC, CHK, QCOM, EWG

NEW YORK (TheStreet) -- Investors are getting into the thick of earnings season and volatility is heating up as a result. The S&P 500 initially sold off on Thursday morning but finished higher by 0.17%.

Amazon (AMZN), Microsoft (MSFT) and Starbucks (SBUX) reported earnings after the close. 

On CNBC's "Fast Money" TV show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, questioned Amazon's high levels of spending. He added that at some point the company needs to start earning a profit. 

Steve Grasso, director of institutional sales at Stuart Frankel, said shares of Amazon will do fine so long as the overall market doesn't sell off. 

Dan Nathan, co-founder and editor of riskreversal.com, completely disagreed, saying he thinks shares of Amazon are headed lower.  

Guy Adami, managing director of stockmonster.com, said the company's operating margins were "lousy." He suggested taking profits for those investors who listened to his buy recommendation several weeks ago. 

Aaron Kessler, senior vice president of equity research at Raymond James, has a buy rating on Amazon with a $443 price target. He said Amazon reported impressive revenue figures. He admitted the company's expenses were high, mainly because it's still in "investment mode." He suggested that operating margins can increase over the long term.

Microsoft is a buy following its earnings report, according to Adami. He added that the company's operating margins were much better than analysts had expected. Najarian said there seems to be a new "swag factor" for shares of Microsoft. He likes it on the long side. 

Grasso suggested taking some profits in Microsoft, partly because of increased competition in the cloud, which will result in lower margins. 

Nathan critiqued Microsoft's Surface tablet and said the company lacks growth. 

Daniel Ives, an analyst at FBR Capital Market, has a buy rating on Microsoft with a $40 price target. He said the company's biggest headwind is its mobile handsets acquisition from Nokia (NOK). It will be a "challenge" to integrate it into the current Microsoft business, he said, but it's a necessary feat if Microsoft wants to be successful in the mobile business. The stock is still relatively cheap at current levels, he concluded. 

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