'Fast Money' Recap: Apple's Surprises - TheStreet

'Fast Money' Recap: Apple's Surprises

The trading panel wondered about the unexpected decline in iPhone shipments and its new accounting method.
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NEW YORK (

TheStreet

) --

Apple

(AAPL) - Get Report

shares were volatile in after-hours trading on Monday after it released a strong earnings report along with questions about an unexpected decline in iPhone shipments and a new accounting method.

Joe Terranova said on

CNBC

's "Fast Money" TV show that he likedApple's numbers but was eagerly awaiting the company's much anticipated tablet on Wednesday. Guy Adami, though, said Obama's state of the union's address may have more of an impact on the market than the tablet's debut.

Melissa Lee, the moderator of the show, expressed concerns about how the company's iPhone's shipments fell below expectations and the confusion from the new accounting rules in the earnings report.

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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Tim Seymour said a lot of the news was already baked into Apple's numbers, adding he heard some "good" news that more service providers may be picking up the iPhone. "That could be an extra 15 to 25 million iPhones," he said.

Adami wondered whether there might be a sell-off in Apple on Tuesday. He said he expected more from the market after the rally in bank stocks and Apple shares during the early part of the day.

Terranova expressed concerns about whether the market is heading toward a deep dive or a series of shallow corrections.

Karen Finerman said last week's selloff was overreaction to Obama's banking reforms. She said she continues to hold on to her stake in

Bank of America

(BAC) - Get Report

.

Adami said

Research In Motion

(RIMM)

, "last year's favorite" tech stock, continues to be under pressure at $61 and appears to be heading down. He said he did not know what effect Apple's earnings would have on RIM.

Lee said

VMWare

(SYMBOL)

was surging by as much as 19% in after-hours trading on a better-than-expected report. She said interest in the stock is also high because of the possibility that it may be snatched up by "someone with deep pockets."

Lee said commodities snapped a three-day losing streak, with oil and gold bouncing back. Terranova said he was buying more copper today, while Seymour said oil traded well. Adami sounded a cautionary note about

Freeport McMoRan

(FCX) - Get Report

, while Seymour said the stock may have room to run if copper is priced at $2.80 a pound.

Lee invited Mike Khouw, an options trader with Cantor Fitzgerald, for a derivative play off Apple's earnings. He said had been hearing that

SanDisk

(SNDK)

, a flash-memory maker, might benefit from Apple's iSlate and a replacement iPhone.

Jon Najarian, who was listening in on the conference call while munching on an apple, said the company reported a 41% margin for its retail stores, which he characterized as "phenomenal." He also said carrier revenue was $5.8 billion, up 20% and representing one third of all revenue.

He said the future of the iPhone looks bright with 17 new wireless carriers from around the globe picking up the iPhone. He said that increase also bodes well for the iSlate.

Adami said Apple's valuation is fair and its growth looks good going forward. However, he said the fate of the stock will be dictated by the action of the broader market.

Najarian said the company said in its conference call that it had sold 200,000 iPhones in China. He also said the big winners in China were the network suppliers like

Nokia

(NOK) - Get Report

. Seymour agreed, adding he liked

Qualcomm

(QCOM) - Get Report

,

China Mobile

(CHL) - Get Report

and

Baidu

(BIDU) - Get Report

as strong plays in China.

The move to dump

Fed

Chairman Ben Bernanke has subsided but

CNBC

reporter Bob Pisani said the talk of the trading floor is the fear of a politicized Fed. Seymour and Finerman said Bernanke would not subject himself to such political compromise.

Lee said

VMware

(VMW) - Get Report

-- not Apple - was the tech stock that was moving in afterhours, up 19% on a much better-than-expected earnings report. Terranova said VMware's earnings shows that that refresh cycle is going on in enterprise spending, with companies opening up their wallets for servers and using VMware software.

Yahoo!

(YHOO)

will be reporting Tuesday and Heath Terry, an analyst for FBR Capital Management, said the biggest catalyst for the stock may be the rumored sale of Chinese ecommerce giant Alibaba. He said Alibaba may be worth more than Yahoo! itself.

Will Treasury Secretary Tim Geithner be next on the hot seat? Dan Clifton, head of policy research for Strategas, said that the big concern now that the threat of Bernanke being removed is reduced is the fate of Geithner.

He said Wall Street is worried about whether he was left out of the loop in the formulation of Obama's banking reforms. He said it there is a replacement for Geither, he or she will not be a Wall Street person or an "industrial" person. He said his guess is that it might be a politican who worked on resolving the financial crisis likeretiring Sen. Christopher Dodd (D, Conn.).

In the final trades, Seymour liked

Vimpel Communications

(VIP)

. Adami said to buy

Amgen

(AMGN) - Get Report

at $53.50. Finerman liked old favorite

Flowserve

(FLS) - Get Report

, and Terranova said he got out of

Frontier Oil

(FTO)

.

-- 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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