'Fast Money' Recap: Tech Talk

NEW YORK (TheStreet) -- The S&P 500 rallied again on Tuesday, closing higher by 0.72%. 

On CNBC's"Fast Money" TV show, guest Rick Sherlund, analyst at Nomura Securities, said Microsoft  (MSFT) could generate $1 billion to $2 billion in revenue with the addition of Office 365 to Apple's  (AAPL) iPad.

He added that the move could give current Office users a reason to upgrade to, or stay subscribed to, Office 365. He also said it should help investor sentiment for Microsoft. He called Oracle's (ORCLearnings report "soft" but not "really bad." 

Tim Seymour, managing partner of Triogem Asset Management, said the move may not benefit Microsoft as much as some investors think. He was a buyer of Oracle. 

Guy Adami, managing director of stockmonster.com, questioned how International Business Machine  (IBM) would trade in reaction to Oracle's earnings report. He suggested that IBM has only traded higher because of the strength in the broader market. He was a buyer of Oracle at $36.50. 

Brian Kelly, founder of Brian Kelly Capital, said Oracle  (ORCL) has failed to embrace newer technology, which hurt the company's recent earnings report. 

Shares of GameStop  (GME) slid 3.5% on Tuesday after Wal-Mart  (WMT) announced it will accept video game trade-ins. 

Steve Grasso, director of institutional sales at Stuart Frankel, said that this news is the first time he's truly been worried for GameStop because Wal-Mart is such a large company and already has everything that customers need in one location. 

Adami said GME does not have a high valuation but needs to hold $35 or it could be headed much lower. Seymour agreed. 

Adami said it looks like Twitter  (TWTR) is headed to $48. Seymour added that Twitter is struggling to grow globally, while the stock's trading volume is in decline. 

Fossil  (FOSL) announced it would partner with Google  (GOOG) and offer wearable Android devices and clothing. Kelly said investors should consider buying Guess? (GES), as it may be the next to offer a similar service. 

Seymour said Fossil has a favorable valuation. 

Adami said he would take profits on shares of Adobe Systems  (ADBE) because it has a rich valuation.

Kelly bought more shares of Tesla Motors  (TSLA) on positive expectations of its Gigafactory. 

Grasso, who said to buy General Motors  (GM) on Monday's "Fast Money" episode, said the stock now needs to hold $34.50 in order to stay long. Adami was also a buyer of GM.

Kelly said he would be a seller of Yahoo!  (YHOO) ahead of the Alibaba initial public offering because everyone will look to sell it after the IPO. The IPO could mark the top in shares of Yahoo!.

Seymour said he would rather be long Baidu  (BIDU) and Tencent Holdings instead of Yahoo! 

Caesars Entertainment  (CZR) was the first stock on the show's "Pops & Drops" segment. Adami said to stay long at current levels and buy more on a breakout over $27. 

Yandex  (YNDX) jumped 7%. Seymour called it the "Google of Russia" but admitted that he was scaling back his long position. 

DSW Inc.  (DSW) fell 3%. Grasso said he is not yet a buyer of the stock, adding that it needs to hold the $38 level. 

Toll Brothers  (TOL) dropped 1%. Kelly said he was not a buyer. 

Ben Kallo, an analyst at Baird Equity Research, was a guest on the show. He has a neutral rating on SolarCity  (SCTY) with an $81 price target. After the stock's big run, he called it "fully valued" at current levels. He admitted that it has good management, solid retail demand and plenty of upside, but said it also has a lot of competition. He preferred SunPower  (SPWR).

Adami pointed out that the iShares 20+ Year Treasury Bond ETF  (TLT) has been moving higher, despite historically underperforming when equities are doing well. He said this correlation concerns him but thinks bonds and equities can go higher. 

Seymour said he sold some, but not all, of his long calls in the Market Vectors Russia ETF  (RSX). He suggested selling the rest on Wednesday.

Kelly said he was buying National Bank of Greece  (NBG) as a play on a rebounding Greek economy. 

Paolo Pirjanian, chief technology officer at iRobot  (IRBT), was a guest on the show, discussing the new Ava 500 robot, which retails for roughly $70,000. It allows companies with multiple operations to collaborate from multiple locations. A smaller version is available for doctors and caretakers to "remotely consult with patients," he said. 

Adami called shares of iRobot "insane" but suggested that investors should trade it on the long side if they can handle the volatility. 

Grasso said investors should play iRobot by buying "what's on the inside," which are chips made by Intel  (INTC) and Qualcomm  (QCOM). 

Kareem Abdul-Jabbar, pro basketball legend and founder of Starguard Collectibles, was a guest on the show. The company recently partnered with Amazon  (AMZN) to bring authentic sports collectibles to consumers. The company's goal is to help cut down on forged and counterfeit products by providing verified collectibles to consumers. 

For their final trades, Seymour said to take profits in long positions of the RSX, while Grasso was a buyer of Hewlett-Packard  (HPQ). Adami was a buyer of Nabors Industries  (NBR) and Kelly said to buy Emulex  (ELX). 

-- Written by Bret Kenwell in Petoskey, Mich. 

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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