'Fast Money' Recap: Is Google Now a Buy?

NEW YORK (TheStreet) -- The S&P 500 made its third consecutive close higher, finishing Thursday up 1.04%. 

On CNBC's "Fast Money" TV show, the panel discussed Google's (GOOG) earnings report after the company missed on top- and bottom-line estimates. 

Guy Adami, managing director of stockmonster.com, said Google does not have an expensive valuation and investors can begin buying the stock. However, the valuation could be headed lower if the company has slowing growth. 

Tim Seymour, managing partner of Triogem Asset Management, said Google's earnings results weren't that bad. He was a buyer at current levels because of its mobile monetization, non-U.S. margins and forward valuation. 

Brian Kelly, founder of Brian Kelly Capital, agreed with Seymour. However, he suggested staying away from the stock at current levels because it's likely to trade "choppy" over the short term. 

Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, called Google a "very good" long-term hold. He suggested that long-term investors use the earnings selloff to add to their positions. 

Collin Gillis, an analyst at BGC Financial, has a hold rating on Google with a $590 price target. He said revenue will grow robustly if Google can re-accelerate cost per clicks (CPCs). He added that back in the "heyday," Google was growing both CPCs and paid clicks; paid clicks rose year over year in the recent quarter while CPCs dropped. 

Gillis said the stock still has upside from current levels, adding the first quarter is rarely good for Google. 

International Business Machine (IBM) missed on top- and bottom-line earnings estimates. Seymour said the stock is not expensive but that doesn't mean investors should buy it. He was avoiding the stock at current levels. 

Kelly was a seller of IBM because of its declining cash flow, which fuels the company's share buyback program. Adami agreed, saying the stock could be headed toward $175. 

Scaramucci admitted the stock will likely head lower in the short term but is optimistic on its long-term prospects. 

Joseph Foresi, managing director at Janney Capital Markets, said the company's low tax rate and share buybacks propped up IBM's earnings results. He pointed out IBM experienced shrinking margins for the eighth consecutive quarter. He called the quarter "pretty underwhelming."  

Shares of SodaStream (SODA) popped 8%. Adami said a larger beverage company is likely taking a stake in the company. He suggested that investors stay long, but warned that it will be a volatile ride. 

Kelly said Yelp (YELP) may finally rebound higher, but he wasn't going to trade it. 

Scaramucci was a buyer of Bank of America (BAC), despite its current litigation expenses. He added that an improving economy and rising interest rates will benefit the bank. Seymour agreed, saying BAC is a buy at current levels. 

Adami said investors could give "a pass" on American Express's (AXP) revenue miss. He said weak retail results hurt the credit card companies. Scaramucci liked AXP because of its strong buyback program. 

Box (BOX) is looking to go public, possibly this summer. Guest Arik Hesseldahl, senior editor at Re/code, said the company is likely to be valued between $2 billion to $3 billion. While revenue grew 111% year over year, cloud prices are coming down, which could hurt the company because it spends more money than it makes, he concluded. 

Adami said Salesforce.com (CRM) needs to have a good earnings result because it trades at such a high valuation and investors are becoming more critical of its financial performance. 

Seymour was concerned about Weibo's (WB) mobile platform and increasing competition. The company is expected to go public sometime this year. He was a buyer of Sina (SINA). 

Adami said investors are valuing Alibaba too low, which is why shares of Yahoo! (YHOO) traded too low. He suggested that Yahoo! could move above $40. 

Seymour agreed, saying investors should stay long Yahoo! for now and take profits near $40. 

CSX Corp. (CSX) fell 2% and was the first stock on the show's "Pops & Drops" segment. Adami said the stock seems likely to trade down to $25.50. 

Yahoo! jumped 6%. Scaramucci said to stay long. 

Twitter (TWTR) fell 2%. Seymour said to avoid the stock ahead of earnings. 

Control4 (CTRL) popped 10%. Kelly said he is staying long, for the long term. 

Sandisk (SNDK) jumped after reporting earnings. Adami said he was a not a short-seller at current levels but suggested waiting for a pullback before getting long. 

Scaramucci said General Motors (GM) has great fundamentals and strong cash flow. He suggested staying long for the long term. Kelly suggested avoided the stock at current levels. 

For their final trades, Seymour was a buyer of Sina and Kelly was buying LinkedIn (LNKD). Scaramucci was a buyer of Microsoft (MSFT) and Adami said to buy Phillips 66 (PSX).


-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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

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