'Fast Money' Recap: Impressed by Yahoo!

NEW YORK (TheStreet) -- After selling off through the morning session the S&P 500 had a strong rally in the afternoon, closing up 0.68% and near session highs.

On CNBC's "Fast Money" TV show, the trading panel discussed Yahoo!'s (YHOO) bottom-line beat, decent guidance and Alibaba data. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, was impressed with the company's mobile users growth. He added that its stake in Alibaba should push the stock higher. 

Brian Kelly, founder of Brian Kelly Capital, questioned what would happen to Yahoo! after its stake in Alibaba is gone since its growth is relatively stagnant. 

Karen Finerman, president of Metropolitan Capital Advisors, said Alibaba will be "a monster." However, she's not participating via Yahoo! but through a long position in SoftBank. 

Guy Adami, managing director of stockmonster.com, argued there's more to Yahoo! than Alibaba. He suggested that near $36 the stock was still cheap and that it should be trading above $40. 

Robert Peck, managing director at SunTrust Robinson, has a buy rating on Yahoo! with a price target of $40. Alibaba's revenue increased 66% while net income jumped 110% year over year in the October through December quarter.

He also pointed out the company's margin expansion, which increased to 78% from 71% in the same time period. He suggested Alibaba is a good way for investors to gauge how the Asian consumer is doing  economically. He concluded that Yahoo!'s earnings report was a good start to earnings season for technology companies.

Shares of Twitter (TWTR) surged 11% on Tuesday after the company announced that it hired Daniel Graf, the former chief of Maps at Google (GOOG). Kelly said shares of Twitter can continue to go higher.

Adami called Twitter "interesting" at current levels. He said the large trading volume and reversal in the stock price may signal a temporary bottom. 

Intel (INTC) beat on bottom-line estimates and reported in-line revenue results. 

Cody Acree, senior research analyst at Ascendiant Capital Markets, has a sell rating with a $20 price target on Intel. He said shares of Intel tend to top out near $27. He admitted the stock is cheap and has a nice dividend but is not cheap based on forward earnings compared to Cisco Systems (CSCO), Qualcomm (QCOM), and Hewlett-Packard (HPQ). 

Kelly suggested taking profits in Intel. He was a buyer of Microsoft (MSFT) at current levels. Adami said shares of Intel need to hold the $28 level in order go higher. 

Kelly said Tesla Motors (TSLA) should find support near $185. If other momentum stocks begin to go higher, Tesla will likely go higher as well. 

Coca-Cola (KO) closed higher on Tuesday after reporting better-than-expected earnings results. Adami said the quarter was "okay" given the "lousy" expectations. He was a buyer on a breakout over $44 rather than at current levels. 

Finerman agreed Coca-Cola had a nice quarter but called it too expensive in terms of valuation to consider buying. 

Matt Burns, senior editor at TechCrunch, was a guest on the show. Regarding GoPro filing for an initial public offering, he said the company has been profitable in each quarter since 2002. He added its previous valuation of $2.25 billion is too low because it is from 2012, when it received its last round of funding. While the company has competition, he said GoPro has a commanding share on the market. He called it the Kleenex of tissues or the Band-Aid of bandages. 

Finerman said it wouldn't be surprising to see Google buy out GoPro.  

Najarian pointed out that GoPro is the only "pure play" on wearable cameras. Unlike GoPro, Sony (SNE), Panasonic and other competitors have a lot of different business segments. 

Finerman said she is a buyer of Apple (AAPL) near $500. 

Adami suggested that investors buy Apple near current levels rather than sell it.

The Brink's Company (BCO) was the first stock on the show's "Pops & Drops" segment. Adami said he wouldn't touch the stock until after he saw the company's earnings results. 

Johnson & Johnson (JNJ) closed higher by 2%. Najarian said the company guided for full-year earnings per share of $6. He thinks it can hit that mark and shares can go higher because of it. 

Pandora (P) jumped 4%. Finerman agreed the company could make solid penetration into the auto market, which was the positive thesis in a report by Pacific Crest issued on Tuesday. 

Newmont Mining (NEM) fell 2%. Kelly said he would avoid gold and gold miners for now. 

Jonathan Geller, editor-in-chief and president of BGR, called Amazon's (AMZN) new 3-D smartphone a "gimmick." He added the device's specifications are not impressive. While no one has seen the phone operate yet, he called the concept of this 3-D smartphone "crazy." It won't be able to compete with Apple or Samsung (SSNLF), so the idea of creating the phone "is nuts as far as I'm concerned," he concluded. 

Adami said Amazon should be able to report a "good enough" earnings result to push shares back to $350 or $360. 

Adami called select biotech stocks undervalued at current levels, specifically referring to Amgen (AMGN). He suggested there could be large sellers in the biotech exchange-traded funds, which is weighing on the quality biotech stocks. 

Najarian note some of those quality stocks, saying companies like Amgen, Celgene (CELG) and Biogen Idec (BIIB) should all rebound. 

For their final trade, Kelly was a buyer of the CurrencyShares British Pound Sterling Trust ETF (FXB) and Finerman said to buy Children's Place Retail Stores (PLCE). Adami was a buyer of Facebook (FB) and Najarian was buying Delta Air Lines (DAL).

-- 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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