3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- NEW YORK ( TheStreet) -- Amazon.com's ( AMZN) high valuation was the topic of conversation after the online retailer traded sharply down Tuesday after a revenue miss. Karen Finerman complained on CNBC's "Fast Money" show about Amazon's stretched valuation and wondered how long it was going to take to achieve the growth to justify it. Joe Terranova said Cisco was a name he did not want to be in. He was particularly worried about the slowdown in sales growth and the increase in spending. Mike Khouw said option traders were positioning for a down move and got it. For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Kerry Rice, an analyst with Needham & Co., said Amazon is driven more by opportunities than valuation. He said Amazon's top line was disappointing, adding the revenue from its U.S. operations and media segment were weaker than expected. Rice, who has a hold on the stock, said Amazon needs to tackle some tough problems such as the sales tax issue, continued infrastructure spending, slower revenue growth and its lofty valuation. CNBC reporter Kayla Tausche came on the show to report that Facebook was preparing to file a $5 billion IPO on Wednesday with Morgan Stanley as the lead underwriter. She said investors would be probably disappointed at the lower figure because they been expecting the $10 billion that had been reported earlier. She said it will be important to see what percent of the outstanding shares Facebook will offer in the IPO. She also said there was no information yet on which exchange the stock will be listed. Ron Insana said it was difficult to say how much of a pop the stock will get based on the sketchy information. Finerman said the stock's valuation will depend on its multiples. Larry Haverty, of Gabelli Global Multimedia Market Portfolio, said the stock will be up the first two days. However, he said the stock's multiple of cash flow is so high that the chances of it performing well are slim to none.