How to Trade on Apple, Facebook, Caterpillar Earnings: StockTwits

NEW YORK (TheStreet) -- The bonanza of earnings reports this week has draws StockTwits' users into debate and discussion. Here are some of their best highlights and tips.

1. Apple (AAPL) has been the top-trending ticker on StockTwits since it reported earnings yesterday. Over the last 24 hours, messages posted on StockTwits about Apple have doubled from 3,000 to 6,000. Over that same time frame, bullish sentiment has spiked 10% -- it's now at 70%.

Here's how some investors are interpreting Apple's latest report:

$AAPL ex cash is trading at 7x Goldman's 2016 estimates; clearly a BUY here, especially in front of a split that will make shares accessible

-- Stray Trader (@StrayTrader) Apr. 24 at 07:57 AM

With these recent moves $AAPL is consolidating its metamorphosis from growth to a value play.

-- Alvaro Salazar (@neoalvaro) Apr. 23 at 11:47 PM

$AAPL Love the stock split and the buy back...hate the guidance. They definitely pulled a "look, SHINY" Brilliant move.

-- John Blake (@Blakej01) Apr. 23 at 11:35 PM

2. When Facebook (FB) first posted their earnings yesterday, the stock tanked. News broke that their CFO, David Ebersman, was stepping down.

But it did not take long for the market to realize that Facebook reported a giant earnings beat. The news about their CFO was, to some extent, irrelevant.

On StockTwits, everyone is talking about Facebook and its future. The number of messages being shared about Facebook has jumped 78%. The company has also seen a 5% jump in bullish sentiment:

$FB Zuck giving keynote on April 30 at F8 facebook dev conference. New ad tools and many new developments to be announced, new highs soon

-- Navi Avatar (@NaviAvatar) Apr. 24 at 02:29 AM

$FB Munster is concerned about the teen migration & new"portfolio" model they have adopted.still "gestating" and evolving.too early to judge

-- carol edwards (@Thorgood) Apr. 23 at 11:31 PM

$FB 802M used FB in March - 200M instagram users at this point, grown from 22M 2 years ago.

-- BBolan1 (@bbolan1) Apr. 23 at 11:20 PM

3. Caterpillar (CAT) reported earnings early this morning, and there's a huge debate happening about it right now.

On the surface, the report appears to be quite strong. Caterpillar even raised its full-year guidance. However, several smart traders on StockTwits are pointing out possible weaknesses deep within the report:

$CAT Caterpillar, Inc. Reports Q1 EPS of $1.61 vs $1.23 Est; Revenue of $13.20B vs $13.24B Est

-- Joao Afonso (@JCPAfonso) Apr. 24 at 07:31 AM

@skyzer Total Revs flat. Mining was bad. They lowered mining outlook 20%!! All gains were from energy/transportation - just read it $CAT

-- LMF (@mytfine) Apr. 24 at 08:03 AM

@mytfine @skyzer lay offs and buy backs are the only reason

-- Ankit Patel (@ankipate) Apr. 24 at 08:05 AM

If you enjoyed this article, check out the author on Twitter and StockTwits.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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