On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said Twitter (TWTR) - Get Free Report and Facebook (FB) - Get Free Report do not face the type of competition Yelp (YELP) - Get Free Report does. He is looking to buy Twitter in the low-$40s.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, added that Twitter is growing both revenue and its user base. However, it remains to be seen if it can sustain that user growth. He reasoned that the stock can find support near current levels.
Tim Seymour, managing partner of Triogem Asset Management, said Yelp needs to demonstrate international growth like Facebook and Twitter. Yelp needs to continue growing revenue and users as well.
Guy Adami, managing director of stockmonster.com, said Yelp posted good growth, just not good enough growth to please investors. However, it looks good on the long side with a $72 stop-loss.
Neil Doshi, managing director at CRT Capital Group, said Yelp's decline in business signups is the reason for the selloff in the after-hours trading session. The 5,900 new business users is the first year-over-year decline in six quarters.
Adami said Whole Foods Market's (WFM) business model may be broken because the company is not posting the type of growth it once did. The valuation does not justify the current price and short-sellers may push the name lower.
Seymour admitted that growth has been slowing at WFM, but said the stock may have some value. If it fails to hold $36 investors should not be long the stock, but he is not selling the stock short.
Najarian bought shares of Whole Foods in the after-hours. He reasoned the $1 billion share repurchase plan will help and the recent selloff offers a good opportunity to get long.
Kelly agreed with Najarian, saying the bad sentiment may coincide with a bottom in the stock price.
On Monday Najarian pointed out the bullish options activity in shares of RF Micro Devices (RFMD) . Again on Wednesday there was more activity, specifically in the September $13 calls. He is long the stock.
Seymour said Apple's (AAPL) - Get Free Report iPhone sales in the previous quarter were strong. However, if the larger screen iPhone 6 is significantly delayed it will likely hurt sales over the short term.
Behrooz Abdi, CEO and president of InvenSense (INVN) , was a guest on the show. He did not say whether his company's components will be in any upcoming Apple products. However, he expects this quarter, next quarter and full-year results to be strong. He said every region and every product is seeing strength as the company continues to take market share.
Adami said shares of INVN are worth owning at current levels but advised investors to have a "strong stomach," because it's a volatile name to own.
Paul Hickey, co-founder of Bespoke Investment Group, was a guest on the show. Regarding the 4% second-quarter GDP growth in the U.S., he said it should add even more strength to the U.S. dollar. Investors should realize that a stronger U.S. dollar will help companies with more domestic exposure, including Wells Fargo (WFC) - Get Free Report and Republic Services (RSG) - Get Free Report, and hurt companies with more international exposure, such as Boeing (BA) - Get Free Report and Estee Lauder (EL) - Get Free Report.
Adami said investors should buy shares of Republic Services with a stop-loss at $35. The stock isn't expensive and even pays a small dividend. Kelly is a seller of Wells Fargo because he anticipates higher interest rates, which will hurt Wells Fargo's mortgage business.
Hess (HES) - Get Free Report climbed 2% and was the first stock on the show's "Pops & Drops" segment. Narjarian said, "I like the name" but suggested investors wait for a pullback before getting long.
Glu Mobile's (GLUU) - Get Free Report problem is that it has to continually commit a lot of money and resources to new products that management hopes will be successful, Kelly said. He is not a buyer, nor is Seymour.
Kelly said Mobileye has impressive technology but questioned if it could have liability issues in the future. Adami wondered if Mobileye's upcoming initial public offering, scheduled for Thursday, could mark a short-term top in the auto market.
Seymour said Mobileye deserves a higher multiple than Tesla Motors (TSLA) - Get Free Report since it does not build cars. He also reasoned the auto industry only appears to be halfway through its "refresh cycle."
For their final trades, Seymour is a buyer of Citigroup (C) - Get Free Report and Kelly is buying the ProShares UltraShort 20+ Year Treasury ETF (TBT) - Get Free Report. Najarian is buying Yahoo! (YHOO) and Adami said to buy LinkedIn (LNKD) .
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.