'Fast Money' Recap: Apple Pullback

Several members of the trading panel expect a pullback in Apple which soared to a new high in after-hours trading.
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NEW YORK (

TheStreet

) --

Apple

(AAPL) - Get Report

soared to a new 52-week high in after-hours trading on Tuesday on a blowout earnings report.

Apple was up more than 8%, after it reported $3.33 a share in adjusted net income in the past quarter compared to $1.79 a share a year ago. Revenue came in at $13.5 billion vs. $8.16 billion a year ago. The results easily beat analysts' estimates.

The impressive earnings report came on a good day for the markets. The

Dow Jones Industrial Average

jumped 73.39, or 0.67%, to 11,092.05, while the

S&P 500

gained 5.39, or 0.45%, to 1,197.52. The

Nasdaq

fell 1.15, or 0.05%, to 2,480.11.

For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw onTV

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Gary Kaminsky said on

CNBC

's "Fast Money" TV show, that Apple is "hitting on all cylinders." He said its mature products continue to gain market share while its new products, such as the iPad, are gaining momentum.

He said the next catalyst for the company will be direct search as it sets its sights on

Google

(GOOG) - Get Report

and

Yahoo!

(YHOO)

.

Pete Najarian said he was closely watching Mac sales, which were just under 3 million units and just a little bit better than expected with what were "aggressive projections."

Joe Terranova said there will probably be a pullback in the stock as investors take profits, and that $250 will be the level where investors should get back in.

Melissa Lee, the moderator of the show, noted an analyst's comments about past trends after strong earnings for Apple: namely, that investors buy into earnings but sell the day after.

Patty Edwards, who was monitoring the conference call, said Apple is playing into the strengths of consumers. She said a better play might be in

Best Buy

(BBY) - Get Report

, which sells the iPad, and

Altera

(ALTR) - Get Report

.

Anthony Scaramucci characterized Apple as a long-term growth story and a long-term hold. In the near term, he said he's worried about the stock because it's priced for perfection as the company nears a market cap of $250 billion.

Kaminsky disagreed, arguing that Apple will go higher because it is "a unique organic growth story."

Jim Goldman, a

CNBC

reporter who was also in on the conference call, said Apple was able to generate more revenue than expected from its existing products while its new product line was performing better than expected. He said Apple's app store has grown to 180,000 apps.

Goldman said Apple reported impressive gains for the iPhone in China, with sales up nine fold. He said Apple also said it's going to open 40 to 50 new retail stores, half outside U.S.

Lee said

Yahoo!

(YHOO)

reported in its earnings that it was seeing gains in the share of search, a trend that its CEO expects will continue in the second quarter. Still, Terranova said the price action on Yahoo! was disappointing after the release of earnings and advised taking profits.

Najarian noted two derivative plays off Apple:

Marvell

(MRVL) - Get Report

and

Akamai

(AKAM) - Get Report

.

Kaminsky said

American Tower

(AMT) - Get Report

would be a safe play.

Lee shifted the discussion to

Goldman Sachs

and the fallout from the civil fraud charges it faces. David Faber, a

CNBC

reporter, said he had not heard of any client defections. He said Goldman still has a strong franchise in a number of areas.

Kaminsky agreed, saying nothing will happen to Goldman from a business perspective. Scaramucci, though, said Goldman faces a real public relations problem that will hurt its stock valuation. Scaramucci said Goldman "will fix" this problem but it will have to "speak more openly about the problems inside the firm relating to culture and attitude."

Dennis Gartman compared Goldman's "shadow litigation" problems to those faced by asbestos and cigarette manufacturers. He said they will divert management's attention from moving forward and will last a long time.

Without the litigation overhang, Douglas Sipkin, an analyst with Ticonderoga Securities, said that Goldman is a better bet than

Morgan Stanley

(MS) - Get Report

. Sipkin said Goldman dominates the fixed income business, while Morgan Stanley is trying to rebuild it. Furthermore, he said Gold is in a much better position to return capital to shareholders.

He said his two favorite names in this space are Goldman and

Lazard

(LAZ) - Get Report

.

Shifting the discussion to

Citigroup

(C) - Get Report

, Lee mentioned a Treasury press release today that mentioned support for a reverse stock split. Terranova said he doesn't know whether that will put a floor on the stock.

Najarian said the options activity around Citigroup suggest expectations that the stock will go well above $5.

Shifting to

Juniper Networks

(JNPR) - Get Report

, which was falling 7% in afterhours trading after its earnings report, Najarian said its earnings weren't impressive enough for the Street.

In the final trades, Terranova said he would buy Goldman the day after the financial reform bill is approved. Scaramucci liked

Hewlett-Packard

(HPQ) - Get Report

. Kaminsky liked Goldman, and Najarian like

Teck Resources

(TCK)

.

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page onCNBC

.

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