Is Twitter's Growth Story Over or Is It Just Getting Started? - TheStreet

NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report are down roughly 10% on Tuesday following the release of its earnings results. The company grew revenues 114% year over year, but disappointed investors with its user growth, according to Pete Najarian, co-founder of optionmonster.com and trademonster.com.

On CNBC's "Fast Money" TV show, Najarian said he is a buyer of Twitter stock because of the big selloff. Also, Twitter has a lot of opportunity in mobile, he reasoned. 

Management has poor execution and could do a better job, according to Stephen Weiss, founder and managing partner of Short Hills Capital Partners. The earnings multiple is too high, given its slower-than-expected growth. 

The stock does look more attractive after the pullback, said Mike Murphy, founder of Rosecliff Capital, but it needs to get down to $40 to become a buy. He is long Facebook (FB) - Get Report , which reports earnings on Tuesday. He sold call options against his position to form a hedge. 

Anthony Diclemente, Internet analyst at Nomura Securities, downgraded shares of Twitter to "neutral" following its earnings release. User growth and monetization is decelerating, which is bad news for a stock with a valuation this high. It's a good buy in the mid- to high-$30's. 

This "selloff seem a little overdone," said Jon Najarian, co-founder of optionmonster.com and trademonster.com. 

Twitter just doesn't need the pressure of being a public company, TheStreet's Herb Greenberg explained. If another company, like Google (GOOGL) - Get Report , were to acquire Twitter, it could "do what it needs to do" behind the scenes and avoid public criticism, he said. The company still has a "tremendous brand," he added, but it isn't being as effective as it needs to be.  

As for another momentum stock, shares of Tesla Motors (TSLA) - Get Report are higher after CEO Elon Musk refuted a report by the Wall Street Journal regarding low Model S sales. The stock can go higher, Murphy said, as it looks to be near solid support

"I'm staying away," Weiss said, because of the valuation. Pete Najarian added that investors can consider going long on General Motors (GM) - Get Report , which appears to have bottomed. 

Buffalo Wild Wings (BWLD) climbed 12% and was the first stock on the show's "Pops & Drops" segment. Jon Najarian said the company reported "phenomenal" same-store sales and has a large short interest. 

Pfizer (PFE) - Get Report fell 1%. Pete Najarian said he is disappointed in the earnings results, but is staying long. He admitted to liking Merck (MRK) - Get Report more. 

Coach (COH) dropped 6%. Murphy said investors can take a shot at the stock on the long side, with should use a stop-loss at Tuesday's low. 

Kohl's (KSS) - Get Report declined 7%. "Why do you want to own anything in this space except Macy's (M) - Get Report ?" Weiss asked. 

The Federal Reserve is scheduled to release its minutes on Wednesday, which is expected to mark the end of quantitative easing. But will it also mark the end of the rally?

"I think the market is more than ready for it," Weiss explained. Investors have known that this is the end for quite some time and they have likely priced it into stocks. 

Interest rates are still likely to stay "lower for longer," Pete Najarian added. But select stocks will continue to offer plenty of buying opportunities.

All four members of the trading panel said investors should sell Madison Square Garden (MSG) - Get Report , because they will have a better buying opportunity after a pullback. 

Investors should take advantage of the recent decline in energy stocks, according to Paul Sankey, managing director of Wolfe Research. He added that so long as oil prices do not decline another 25% from here, being long energy stocks should be profitable within six months because investors typically price in so much bad news during the declines. He likes Hess (HES) - Get Report and EOG Resources (EOG) - Get Report

For their final trades, Weiss is buying American Airlines (AAL) - Get Report , Murphy is a buyer of Hertz Global Holdings (HTZ) - Get Report and Pete Najarian said to buy United Continental (UAL) - Get Report

-- Written by Bret Kenwell 

Follow @BretKenwell

TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."

You can view the full analysis from the report here: FB Ratings Report