'Fast Money' Recap: Google and Amazon Lead the Way

NEW YORK (TheStreet) -- The S&P 500 was able to bounce back on Thursday after several disappointing trading sessions. 

On CNBC's "Fast Money" TV show, the traders were discussing the earnings reports from Google (GOOG) and Amazon (AMZN). 

Guy Adami, managing director of stockmonster.com, said Amazon had good margins, but it was concerning that it missed on the top and bottom lines. He suggested that investors not short the stock. It's surprising that Google's up this much in after-hours trading, considering the quarter was somewhat "benign." he said.  

Tim Seymour, managing partner of Triogem Asset Management, said that all of the talk about Amazon and the holidays was super-positive, which is why investors were likely too optimistic going into the quarter. He was a buyer of the stock on weakness. 

Brian Kelly, founder of Brian Kelly Capital, said he, too, was surprised by the disappointing results from Amazon, considering all the good news about online shopping. He added that other retailers appear to be eating into Amazon's market share. 

Karen Finerman, president of Metropolitan Capital Advisors, said Amazon has never traded on valuation and is unlikely to start doing so now. She was not a buyer of AMZN. She opted to stay long shares of Google and did not plan on buying more or selling it. Finerman also said it was good for Google to sell its Motorola Mobility unit. 

Michael Pachter, managing director of Equity Research at Wedbush Securities, was a guest on the show. He has a $330 price target on Amazon because the stock seems too far ahead of itself. He said management made the mistake of letting the stock trade up too high, when the results weren't enough to beat Street estimates. He concluded that 2014 would be like 2013 for Amazon, where revenues grow strongly, but earnings per share do not.

Martin Pyykkonen, senior analyst at Wedge Partners, was a guest on the show. He said that Google had a very good quarter, fundamentally speaking. The company seems to be firing on all cylinders and still trades at a favorable valuation, considering its growth. 

Chipotle Mexican Grill (CMG) traded higher in the after-hours after reporting earnings. Adami said the report was good and the company had strong operating margins, but suggested taking profits based on valuation. 

Seymour agreed and said he would be surprised to see CMG move through resistance near $550. 

Kelly said Instagram has been huge for Facebook (FB), which soared 15% on Thursday from strong earnings. However, the stock traded poorly after the open and he suggested that investors give it three days before getting long, and then use the three-day low as their stop-loss. 

Seymour said FB is experiencing huge growth in mobile and the company should continue dominating the space.



Finerman is a buyer of Citigroup (C) despite its international exposure. She expects volatility to die down a bit and the stock to rally over the next several weeks.

Seymour suggested that emerging market corporations will be fine and that China's luxury market will remain strong. 

Adami said that shares of Boeing (BA) are starting to get "interesting" on the long side, but he was not yet a buyer. 

J.C. Penney (JCP) was the first stock on the show's "Pops & Drops" segment. Adami said the company has raised a lot of debt in the past year but has failed to turn its operations around. He said the stock was too low to sell short but of too poor of quality to buy. 

Citrix Systems (CTSX) fell 7%. Kelly said investors who are long could use $50 as their stop-loss. 

WellPoint (WLP) popped 3% and Finerman said today's price action was just a delayed reaction to yesterday's strong earnings report. 

Blackstone (BX) was up 4%. Seymour said he is staying long after the company announced record fourth quarter profits. 

Zynga (ZNGA) popped higher after reporting earnings, but Adami said he was not a buyer at current levels. 

ADT Corp. (ADT) fell 17% on Thursday after delivering poor earnings results. Finerman was not a buyer and said there was something sketchy going on when the company bought back over 10 million shares from the hedge fund Corvex mid-quarter and very abruptly. 

Herb Greenberg of TheStreet also weighed in on the conversation. The company bought back those 10.24 million shares from Corvex, and the founder Keith Meister immediately resigned from ADT's board, Greenberg said. The move seems awfully shady, especially now that the stock is trading so much lower. He suggested that regular investors should be allowed to enter these tender offers in order for it to be more fair. 

For their final trades, Kelly is buying Consol Energy (CNX) and Seymour is buying NBT Bancorp (NBTB). Finerman said to take profits in Timken (TKR) and Adami is a buyer of QLogic (QLGC). 

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

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.

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