NEW YORK (TheStreet) -- Stocks dipped lower into Wednesday's close as the S&P 500 finished 0.11% below Tuesday's closing price.
On CNBC's "Fast Money" TV show, the trading panel took a closer look at Apple's (AAPL) now official acquisition of Beats Electronics for $3 billion.
Guy Adami, managing director of stockmonster.com, said Apple made the acquisition for Beats' "cool factor," not it's technology. He added the stock appears likely to rally into the 7:1 stock split, which will take effect on June 9.
Karen Finerman, president of Metropolitan Capital Advisors, agreed Apple made the purchase of Beats for the latter's consumer products. She added that the $3 billion price tag is too small to really matter for Apple.Dan Nathan, co-founder and editor of riskreversal.com, also called the acquisition price a "drop in the bucket." He said investors and analysts seem overzealous right now and he questioned Apple's innovation going forward. Steve Grasso, director of institutional sales at Stuart Frankel, said the stock split may mark a "near-term top" in the stock price. Brian Blair, managing director and senior research analyst at Rosenblatt Securities, said he's "very puzzled" by Apple's deal for Beats Electronics. He called Beats a non-premium brand and suggested Apple's move is "too little, too late." However, he thought Apple's large user base, coupled with Beats' streaming music service, could allow for rapid adoption among users. Nathan said he is long September bull call spread options in Twitter (TWTR), which found support near $30 and jumped roughly 10% on Wednesday. Grasso added that perhaps investors feel as though they have the "all clear," now that analysts are starting to warm up to the stock again. Adami said LinkedIn (LNKD) appears to be an attractive long candidate "technically speaking" by the setup on the price chart. However, he admitted the stock's valuation is still a bit "stretched." Rick Sherlund, a tech analyst at Nomura Securities, was a guest on the show. Regarding Microsoft's (MSFT) future success, he said it's all about doing well in mobile and strengthening its enterprise business because the consumer segment remains weak for the company. Investors will not have "immediate gratification" as it would from financial engineering, because CEO Satya Nadella has opted not to spin off Bing or Xbox and is choosing to organically grow the company.
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