This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'Fast Money' Recap: Music to the Market's Ears?

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. 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs