'Fast Money' Recap: Getting to the Core of Apple

NEW YORK (TheStreet) -- The S&P 500 snapped its winning streak on Wednesday, closing lower by 0.22%. 

On CNBC's "Fast Money" TV show, the trading panel analyzed Apple's (AAPL) second-quarter earnings results. The company boosted its share buyback program by $30 billion and hiked its quarterly dividend 8% to $3.29. The company also beat on top- and bottom-line estimates and announced a 7-for-1 stock split. 

Guy Adami, managing director of stockmonster.com, called it a "terrific quarter." He stressed the stock now has to hold its current trading level (post-earnings) or it could head back down towards $535.

Tim Seymour, managing partner of Triogem Asset Management, is long Apple. He said the stock needs to push through the $565 level, which acted as previous resistance. 

Karen Finerman, president of Metropolitan Capital Advisors, said Apple reported a good quarter and she likes the company's shareholder-friendly decisions regarding the share buyback and dividend boost. 

Brian Kelly, founder of Brian Kelly Capital, said he will wait two to three days and hope for a pullback before buying the stock. 

Collin Gillis, senior technology analyst at BGC Financial, has a hold rating on Apple with a $550 price target. He said Apple reported great earnings results. However, he pointed out that Apple's average selling price for its iPhones are "significantly" higher than its peers, meaning margins could come under pressure in the future. He said the stock split will likely have a slightly positive affect on the stock. 

Facebook (FB) beat on revenue and earnings estimates, grew revenue 71% year over year and increased both its monthly and daily active users. 

Robert Peck, managing director and Internet analyst at SunTrust Robinson Humphrey, has a buy rating on Facebook with a $70 price target. He pointed out that ad revenue are rising because of higher pricing, not because of higher ad volume, which is a positive sign. He added that Facebook's costs are dropping, providing more leverage to its operating margins. 

Adami called Facebook's quarter "fantastic." He said investors should stay long the stock. 

Kelly also said the quarter was great but questioned if this growth would be "as good as it gets" for Facebook. 

General Electric (GE) is reportedly looking to acquire Alstom for $13 billion. Seymour said the acquisition would make "a lot of sense" for GE. 

Adami called Coca-Cola's (KO) valuation "reasonable" but was a buyer of Pepsico (PEP) instead. 

Finerman, who is long SodaStream (SODA), said she would not be a buyer at current levels. 

Caterpillar (CAT) was the featured company on the show's "Street Fight" segment. Seymour was the bull, saying U.S. construction has been increasing, which is good for CAT. He added that worldwide mining will increase through 2015 and earnings per share is expected to grow by 30% in 2015. 

Kelly disagreed, arguing the company will not be able to hit its EPS growth target of 30%. He added that Caterpillar's sales continue to fall while the Chinese economy is not growing as robustly as it once was, which will have an impact on the company. He said the 23% rally in the stock ahead of earnings could create a sell-the-news event when it reports. 

Adami said it's "shocking" how well shares of CAT have performed. He admitted that it seems like the stock wants to go higher.

Colin Angle, CEO of iRobot (IRBT), said his company's defense and security (D&S) business will be "rough" in 2014 but it could be a "trough" year where sales bottom out. He added that the home robot segment did very well, with sales increasing 17%. He said that over time the company will take "huge" market share in the vacuum market.

Kelly said it would be nice to see iRobot hold the $34 level. He also said it is a good takeover candidate. 

Adami said Zynga (ZNGA) can continue to move higher because of the high short-interest in the stock, despite the company not having the best business plan. 

Seymour called shares of Texas Instruments (TXN) "fairly" valued at current levels, despite the company's strong growth and solid guidance. 

Kelly said F5 Networks (FFIV) needs to perform well on Thursday and hold its post-earnings jump after reporting solid earnings results. 

Adami was a buyer of Qualcomm (QCOM), although he admitted the company's revenue and guidance was "not great."

Finerman said all of the positive earnings results should instill some sort of confidence in investors and boost sentiment.

SunPower (SPWR) was up 7%, making it the first stock on the show's "Pops & Drops" segment. Seymour said there has been good news for the company but he was not a buyer at current levels. 

Yum! Brands (YUM) fell 1%. Kelly said shares have to hold $75 or investors should get out of the stock. 

Boeing (BA) jumped 2%. Adami said the company reported a good quarter but suggested taking profits near $135. 

Navigator Holdings (NVGS) moved higher by 12%. Finerman was not a buyer at current levels. 

For their Earth Day trades, Seymour was a buyer of Companhia De Saneamento Basico Do Estado De (SBS), and Kelly was a buyer of BlackBerry (BBRY). Finerman was a buyer of General Electric and Adami was buying Pentair (PNR). 

For their final trades, Kelly said investors should insure their portfolio via a long position in SPDR S&P 500 Trust ETF (SPY) puts and Seymour was a buyer of Starbucks (SBUX). Adami was a buyer of Chesapeake Energy (CHK) and Finerman said to buy WellPoint (WLP). 


-- 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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