NEW YORK (TheStreet) -- After selling off in early Wednesday trading, U.S. equities erased most of the losses by the close, finishing slightly lower on the day.
On CNBC's "Fast Money" TV show, the traders were discussing Twitter's (TWTR) first earnings report, after which shares were over 15% lower in after-hours trading.
Steve Grasso, director of institutional sales at Stuart Frankel, is remaining long but most of investors' concerns are stemming from the company's slower-than-expected user growth. He added the stock rallied too high based on Facebook's (FB) solid earnings report last week.
Tim Seymour, managing partner of Triogem Asset Management, said expectations for the company were too high. He added that at 40 times sales, the company is too overvalued at current levels.
Guy Adami, managing director of stockmonster.com, said that if the $58 level doesn't hold, then Twitter is likely to trade down to the mid-$40s. He reminded investors there are two lock-up expirations approaching, in February and April.
Karen Finerman, president of Metropolitan Capital Advisors, said a lot of high-valuation stocks seemed to do badly on Wednesday. She's not a buyer of Twitter at current levels.
Seymour called Pandora (P) a "pure play" on the mobile space. The company just posted a 51% year-over-year revenue increase, which is the type of growth investors have to pay up for.
Adami said Pandora is setting up nicely on the long side after Wednesday's earnings-induced selloff. He is not yet a buyer, however.
Adami said the short interest is very high in GMCR (roughly 30%), which is likely aiding the move higher. He suggested that SodaStream (SODA) is now an interesting candidate on the long side, because a different company could make a similar investment in it. Finerman concurred.
TheStreet's Herb Greenberg weighed in on GMCR. He pointed out the company's falling revenue growth and stalling K-cup sales. He added rising coffee prices should hinder the company's margins. He also said this was a great deal for Green Mountain Coffee Roasters, but it will likely take a while to implement. He said the business is deteriorating.
Andrew Left, executive editor of Citron Research, was a guest on the show. He is noted for recently selling short shares of 3D Systems (DDD). He said investors should cover some of their short position with Wednesday's huge move lower. Although he did say today's move is just the start of the long-term move lower. Left said he would also be a seller of Voxeljet (VJET), but not a seller of Stratasys (SSYS).
Seymour said 3D Systems continues to deliver on the top line but is still overvalued at current levels. For this reason, he found it likely shares will continue to trade lower.
Grasso pointed out that shares of Stratasys held the 200-day moving average. He is long Hewlett-Packard (HPQ) for its eventual involvement in 3-D printing.
CNBC's John Jannarone was a guest on the show, discussing the valuation of Time Warner's (TWX) HBO business segment. He noted that HBO's operating profit was about $1.7 billion last year versus operating profit of $200 million for Netflix (NFLX), despite the two entertainment providers posting similar revenue figures.
He added that HBO has not had to grow its subscriber base all that much because it can raise prices without losing subscribers. He also said HBO's agreement with Universal, Fox and Warner Brothers allows it to get hit movies in a very timely fashion, as opposed to Netflix's more lengthy process of doing so. With that being said, he reminded investors that Netflix is still in its early stages, whereas HBO has had much more time to get to where it is today.
Adami said the news makes TWX look much more interesting as an investment because of the potentially undervalued HBO segment. He still likes NFLX on the long side, but acknowledged that it could pull back to the $360 to $375 area.
Grasso said he sold his long position in Alcoa (AA) because of the recent fears over slowing global growth. If global growth is being doubted, Alcoa will be doubted, too, he reasoned.
Jeff Goodman, director of animal law at People for the Ethical Treatment of Animals, was a guest on the show. He said PETA owns shares of SeaWorld Entertainment (SEAS) in order to bring forward proposals for the better treatment of orca whales. He added SeaWorld usually dismisses these proposals since there is nothing legally stopping it from doing so. He suggested that it would be beneficial for SeaWorld to listen to the proposals since the Blackfish documentary really damaged the company's public image.
For their final trades, Adami is buying SODA and Finerman said don't buy DDD. Grasso is a buyer of Yahoo! (YHOO) and Seymour is buying KO.
-- Written by Bret Kenwell in Petoskey, Mich.