NEW YORK (TheStreet) -- The S&P 500 finished flat as stocks consolidated after making record highs in the previous two trading sessions.
Monday's big headline came after Netflix (NFLX) - Get Report beat on earnings and quickly rallied towards $400 in the after-hours session. The stock is now up over 440% this year. On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, cautioned investors to avoid initiating new positions at these levels.
Tim Seymour, managing partner at Triogem Asset Management, said that although its subscriptions continue to increase, the valuation has more than priced in all of the good news.
Pete Najarian, co-founder of optionMONSTER and tradeMONSTER, said international subscriptions are finally starting to grow and the current subscription number is just the tip of the iceberg.
Mark Mahaney of RBC Capital Markets said four catalysts exist to drive shares of Netflix higher: cable distribution deals, (so far there have only been rumors), price hikes that will lead to better margins, swinging from a loss to a profit in its international division and producing another award-nominated series.
JPMorgan Chase (JPM) - Get Report has reportedly settled with the Justice Department for $13 billion. Karen Finerman, president of Metropolitan Capital Advisors, said investors seem to have already priced the fines into the stock price. She still likes the stock.
Josh Brown, a financial adviser of Ritholtz Wealth Management, said he is still long FirstSolar (FSLR) - Get Report, but suggested investors use the Guggenheim Solar ETF (TAN) - Get Report to minimize single-stock risk. The exchange-traded fund is invested in the 22 highest levered companies to the solar industry.
Stephen Anderson, a restaurant analyst at Miller Tabak, was a guest on the show and downgraded shares of Chipotle Mexican Grill (CMG) - Get Report to hold from buy. While he acknowledged the stock deserves a premium valuation, he said it will likely have a modest pullback. However, he said Chipotle is firing on all cylinders.
Adami said Panera Bread Company (PNRA) could shock Wall Street when it reports earnings on Tuesday because nobody seems to expect good results.
Dennis Gartman, publisher of The Gartman Letter, was a guest on the show and said crude oil could go down to $85 per barrel because the U.S. is producing so much oil. He added that refinery stocks should benefit from lower input costs and higher output volume.
Najarian said he is a buyer of Facebook (FB) - Get Report due to its momentum and incredible volume in the call options. Regarding earnings, he said investors could continue to own the stock if mobile growth remains strong. Otherwise, it should be sold.
Barbara Marcin of Gabelli was a guest on the show and said Xylem (XYL) - Get Report is one of her favorite picks. Regarding Apple's new iPad, she said investors might expect colors and fingerprint sensors to go along with a thinner, lighter model.
Finerman said small investors are unlikely to be allocated shares of Twitter when it goes public. If they do get shares, it's probably not a good thing.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.