'Fast Money' Recap: How to Trade Google

NEW YORK ( TheStreet) -- The markets were mixed Thursday as stocks rallied off the session's lows.

The Dow Jones Industrial Average fell 40.72, or 0.35%, to 11,478.13. The S&P 500 dropped 3.59, or 0.30%, to 1203.66. The Nasdaq rose 15.51, or 0.60%, to 2620.24.

Jon Najarian said on CNBC's "Fast Money" TV show that he was impressed with Google's earnings, which blew past expectations. He said it did "astonishly well" in a very difficult quarter. The stock was was up close to 9% in afterhours trading.

Karen Finerman said Google has become a cash machine, quarter after quarter. She said she would love to see the company return some of that cash to shareholders.

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 on TV

Joe Terranova said the critical question will be figuring out how to trade the stock. He said it will be important for the stock, which closed today at 558.99, to rise above 599, its 200-day moving average. He said the outlook for the stock will be good if that happens. Stephen Weiss said he would stay away from the stock until it settles down.

Guy Adami was a little more skeptical. He said 625 is the resistance level for Google and 485 support. He said he would consider shorting the stock if it rises above 600.

CNBC reporter Jon Fortt, who was listening to the conference call, said Google's mobile business had reached an impressive $2.5 billion annual run rate. He also said its business in Europe was soft in some areas.

Gene Munster, an analyst with Piper Jaffray, said he was impressed with the 28% year-over-year growth in paid clicks, though the price per click declined as the growth in clicks was influenced by the popularity of the mobile Android.

He also said Google saw its cash flow grow to $700 million for the quarter. He said there is a lot of pressure to do something with the cash. He said the growth in mobile gives his company confidence in its price target, which he said it is still working out.

Najarian said Google's growth is impressive because it was done with any help from China.

Melissa Lee, the moderator of the show, brought in Marc Benioff, chairman and CEO of salesforce.com ( CRM) to comment on his running battle with Oracle ( ORCL) CEO Larry Ellison. Benioff's appearance at Oracleworld was cancelled.

Benioff said the message behind his company's success is cloud, mobile and social. Meanwhile, he said Oracle is focused on the limited capabilities of its Exadata mainframes.

He said Salesforce.com was enjoying a banner year and aims to take away customers from Oracle.

Adami expressed concerns about the volatility of the stock, which was down 40% in less than a month's time before recovering. Finerman was also worried about the stock's lofty multiple.

What's the read-through from JPMorgan ( JPM)'s earnings? Brian Foran, managing director for Nomura Securities, said the report raises concerns about the ability of banks to grow again and lower expenses.

On a brighter note, he said the banks' credit situation is good. But he said the yield curve has been terrible for banks.

Finerman said the response to JPM's earnings doesn't bode well for others in the space like Goldman Sachs ( GS) and Morgan Stanley ( MS).

Turning to the Volatility Playbook Philippe Trouve, of Bank of America Merrill Lynch, said the VIX is telling us "things are getting better but there is still a lot of uncertainty out there." As a general rule, he said that when the fear index rises above 32, it's to sell options. If it falls between 16 to 32, do nothing. And if falls below 16, buy options. He said now it good time to buy put spreads.

Commenting on the 2% slide in copper and oil today, Dan Dicker, senior contributor for TheStreet, noted that the Chinese have removed letters of credit for inventories for copper and that copper appears to have hit a bottom at $3 a pound.

He said copper will bounce along the bottom, and that he was happy to be short.

Dicker said oil is going through a rebalancing that will drive the price of crude high. He said the price will rise because the Dow Jones UBS is going to follow the Goldman Sachs commodity index and sell its WTI exposure and buy Brent exposure.

Is Advanced Micro ( AMD) becoming irrelevant? Dan Berenbaum, a chip analyst with MKM Partners, thinks so. He says AMD is squeezed by ARM chip competition for tablets and has fallen behind Intel ( INTC) on higher-end technology. Berenbaum, who reiterated his sell rating on AMD, said the company needs to figure out a tech roadmap.

Lee shifted to a report on a Website that dissected the iPhone 4s and came up with four companies that were responsible for parts. They included Qualcomm ( QCOM), Skyworks ( SWKS), Triquint ( TQNT) and Avago ( AVGO).

Najarian said the option activity exploded on Triquint, whose stock soared 26%. He said the dissection report by iFixit is significant because vendors can't talk about the phone.

In the final moves, Weiss liked Qualcomm ( QCOM). Brian Stutland liked Valero ( VLO) and BP ( BP). Najarian liked St. Jude Medical ( STJ). Adami liked McDonald's ( MCD). Finerman was a seller of November 620 calls in Google. Terranova liked Apple ( AAPL) and Teradyne ( TER)

-- Written by David Tong in San Francisco.

>To contact the writer of this article, click here: David Tong.

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