'Fast Money' Recap: What's On? How About Netflix Stock?

NEW YORK (TheStreet) -- The S&P 500 made another record close, ending Thursday's session at 1,920, up 0.54%. 

On CNBC's "Fast Money" TV show, the trading panel took a look at shares of Netflix (NFLX). 

Guy Adami, managing director of stockmonster.com, said the stock looks likely to push up to the $458 level, where it will either breakout or breakdown. 

Tim Seymour, managing partner of Triogem Asset Management, said the stock has simply bounced higher from oversold levels. With a relative-strength index (RSI) reading of 80, he reasoned that the stock is now overbought. 

Karen Finerman, president of Metropolitan Capital Advisors, said the stock's valuation is way too high for her to consider buying the stock. She added the valuation make it dangerous to own a stock like this. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, acknowledged Netflix has a high valuation but said it could still continue higher with more "reality shock" selloffs in the future. 

Victor Anthony, managing director at Topeka Capital, has a buy rating on shares of Twitter (TWTR) with a $60 price target by the end of 2014. He admitted the stock got ahead of itself before selling off in what became a "de-risk" environment. He said Twitter's monetization potential is very high with its platform.  

Seymour said he is long June $32 call options in Twitter. He said the stock seems to "temporarily" have its momentum back. Najarian is long Twitter as well, but he is not trading the stock based on valuation. He is not that optimistic on Twitter's ability to properly monetize its platform. 

Adami pointed out how good Facebook (FB) earnings were last quarter. With its "very strong" results in nearly every metric, he reasoned the stock should be able to climb to $75.

Finerman is a buyer of Softbank and said it is a better investment than Yahoo! (YHOO) in terms of a play on Alibaba since both own stakes in the Chinese e-commerce company. 

Najarian called Walter Energy (WLT) "undervalued" at current levels. 

Seymour said eBay (EBAY) is both oversold and undervalued. He is a buyer. 

Najarian questioned whether investors have already "baked" in all of the upcoming announcements into Apple's (AAPL) stock price. He worries about a selloff in the stock if the company fails to announce a "blow away" product. 

Seymour argued the Apple's valuation alone is enough to keep the momentum going to the upside. Finerman suggested the market is unlikely to price in too much of a premium into shares of Apple, based on a product they have never seen or heard of. 

Seymour pointed out that momentum appears to have returned to bitcoin since mid-April. On Thursday DISH Network (DISH) announced it will accept the digital currency. 

BlackBerry (BBRY) was the featured company on the show's "Street Fight" segment. Najarian was the bull, arguing the company's restructuring plan is complete and BlackBerry can begin focusing on lucrative businesses such as big data solutions. He added that 98% of Android apps will work on BlackBerry, which is good, while gross margins should exceed 40% by the first quarter of 2015. 

Adami disagreed, arguing that gross margins would only be that high based on cost cutting. The only issue is how many costs the company can cut before there is nothing left to cut. He called BlackBerry Messenger a "wild card," questioning when or if it would be monetized in the future. He concluded that fourth-quarter revenue declined 64% year over year. BlackBerry said a similar fall was in store for the upcoming first-quarter results. 

Seymour said BlackBerry has M&A potential and called the stock undervalued based on a sum of the parts valuation. Finerman is not a buyer of BBRY. 

Lions Gate Entertainment (LGF) fell after beating on top- and bottom-line estimates. Adami said the stock should find support near $25 once again. "Unfortunately," shareholders will just have to give the company time to prove itself, he added. 

Najarian is a buyer of the November $45 call options in shares of Skyworks Solutions (SWKS) after he detected bullish options activity in those calls. 

Seymour said investors should stay in the food industry, which is experiencing a plethora of M&A activity, with Tyson Foods (TSN) outbidding Pilgrim's Pride (PPC) for Hillshire Brands (HSH). The potential takeout of HSH makes investors wonder what will now happen to Pinnacle Foods (PF), which was supposed to be taken over by HSH. Najarian agreed with Seymour, saying investors should stay in this industry. 

Finerman said Children's Place Retail Stores (PLCE) has a low Ebitda valuation and still has a lot of growth. She is a buyer. 

Adami is a buyer of SodaStream (SODA), reasoning that Starbucks (SBUX) or Pepsico (PEP) seem like likely candidates to take a stake in it. 

Shares of Gap (GPS) are up 4% year to date and Art Peck, president of growth, innovation and digital at the company, said the company's new brand, Athleta, is on track to open 100 stores by year end. The brand was originally an online and catalog brand. Gap used previous customer sales to determine the best locations for opening stores of Athleta, which so far is taking market share from competitors, he said. 

Adami said he is a buyer of Gap due to its low forward earnings valuation, but admitted that margins looked a tad "sketchy."

Seymour said Nike (NKE) continues to find support at the 200-day moving average near $73. He is buyer, based on the company's global growth model and the stock's "decent" valuation. 

Najarian said Lululemon Athletica (LULU) is cheap at current levels. 

T-Mobile U.S. (TMUS) climbed 1% and was the first stock on the show's "Pops & Drops" segment. Najarian said it seems likely the company will be acquired. 

Dollar General (DG) fell 2%. Adami said the stock seems likely to really following its earnings report and he would "buy it right here." 

SunEdison (SUNE) jumped 5%. Seymour said "don't chase" the stock. 

Clean Energy Fuels (CLNE) popped 9%. Finerman noted that Morgan Stanley upgraded the stock based on its increased move into long-haul trucking.

Seymour called it a "rough, rough ride" for shareholders in Infoblox (BLOX), which fell 30% in the after-hours session after badly missing revenue expectations.

CNBC's Meg Tirrell was a guest on the show. She said leukemia and lung cancer will be two big topics at the American Society of Clinical Oncology (ASCO) conference this weekend in Chicago. Pharmacyclics (PCYC) may have a $2 billion chronic lymphocytic leukemia treatment with its Imbruvica drug. AbbVie (ABBV), Gilead Pharmaceuticals (GILD) and Infinity Pharmaceuticals (INFI) may also have solid treatments in the pipeline. As for lung cancer treatments, AstraZeneca (AZN) and Clovis Oncology (CLVS) have two potential treatments, with analysts warming up to the latter.

Adami is a buyer of GILD based on its "great" earnings report in April. 

Najarian likes Celldex Therapeutics (CLDX) near current levels. He is eying a long position in the stock.

Adami called shares of Potash (POT) cheap in valuation while Seymour said it's "going higher."

Finerman was a buyer of CVS Caremark (CVS) or Walgreen (WAG) over Rite-Aid (RAD) because of the amount of debt RAD carries. 

For their final trades, Seymour is a buyer of the iShares MSCI South Korea Capped ETF (EWY) and Adami is buying U.S. Steel (X). Finerman is a buyer of PLCE and Najarian is a buying Schlumberger (SLB). 

-- 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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