'Fast Money' Recap: Technology Stocks in the Spotlight

NEW YORK (TheStreet) -- The S&P 500 fell 0.19% on Tuesday but CNBC's "Fast Money" trading panel was focused on all of the big news in the technology sector starting with Intel's (INTC) revenue and earnings beat. 

Dan Nathan, co-founder and editor of riskreversal.com, said Intel shares, which are up 25% in 2014, have climbed too much given that earnings and revenue are only expected to have single-digit growth. It seems to be "as good as it gets" for the stock, he added. 

Guy Adami, managing director of stockmonster.com, said when margins peak for Intel, the stock price tends to as well. He suggested taking profits. 

Steve Grasso, director of institutional sales at Stuart Frankel, argued that increased PC demand coupled with strong demand in chips, tablets and the cloud can continue to fuel shares of Intel higher. It's still a buy, he said. 

When it comes to valuation, many of these large-cap technology stocks look okay, according to Karen Finerman, president of Metropolitan Capital Advisors. They have strong balance sheets and good cash flow, she added.

Chris Rolland, semiconductor analyst at FBR Capital Markets, said Intel reported a very strong quarter and issued solid guidance. Gross margins increased and the stock is "incredibly reasonably valued" at current levels. He expects to see positive unit growth this year for PCs, which is a contrarian call compared to most analysts. He also likes Advanced Micro Devices (AMD), on which he has a $6 price target, but suggested that it has run too far too fast into its earnings report. 

Colin Gillis, senior technology analyst at BGC Financial, discussed Yahoo!'s (YHOO) earnings results. He has a hold rating on the stock with a $37 price target. 

The company just reported its lowest GAAP revenue since Marissa Mayer took over as CEO, he said. Yahoo! is still in "turnaround mode," and it could take years for it to be completed. The company plans on selling a smaller-than-expected portion of its stake in Alibaba when it goes public, and Yahoo! plans to use half of those proceeds to return cash to shareholders through dividends and/or share buybacks. However, the "core business is just not healthy," he concluded. 

Nathan said investors are likely to buy the weakness if shares of Yahoo! open lower Wednesday.

Apple (AAPL) and International Business Machine (IBM) announced an exclusive partnership focused on applications for businesses. 

Toni Sacconaghi, senior analyst at Bernstein Research, said the two companies' decision to join forces will form a very "creative vertical" for the iOS operating system and the way it is used for enterprise applications. He has a buy rating on shares of Apple with a $100 price target. 

Adami said this announcement could give "cover" to IBM, which will likely report less-than-stellar earnings on Thursday. But because of this news, investors may not care as much about the earnings result. 

Grasso reasoned that the deal with Apple seems likely to leave IBM with weak margins in the partnership. 

Nathan disagreed, suggesting the margins on services would be strong. He added that it will give the company something exciting to pitch to its clients. 

Finerman said she wasn't sure if the partnership meant bad news for BlackBerry (BBRY), but she noted the company's after-hours drop.

Finerman said JPMorgan Chase (JPM) remains a cheap stock based on its price-to-earnings multiple. She added that CEO Jamie Dimon knows each part of the bank's businesses very well, and that's comforting for a shareholder. 

Adami argued that Bank of America (BAC) is rangebound between $15.25 and $15.75. He is a buyer of Goldman Sachs (GS) instead, which just reported good earnings results. 

Michael Kors (KORS) fell 7% Tuesday, following two analyst downgrades. Nathan said the stock is now down 21% from its all-time high and he is still not a buyer. The consumer isn't as strong as many people think, he added. 

Finerman said that KORS seemed to be "priced to perfection," making it a stock too rich in valuation to own. Instead, she is a buyer of Macy's (M).

Grasso said he bought Facebook (FB) on Tuesday as social media and biotech stocks sold off following Fed Chairwoman Janet Yellen's comments calling them overvalued. 

CNBC's Kate Kelly was a guest on the show. As a preview to Tuesday's annual Delivery Alpha Conference, she noted the three most profitable ideas from last year: Carl Icahn's Netflix (NFLX) long, which returned 72.5%; Leon Cooperman's Qualicorp (QUAIF) long, which returned 72.3%; and Larry Robbins' McKesson (MCK) long, which returned 60%. 

Of these three stocks, Adami said he would stick with McKesson. 

For their final trades, Nathan is a seller of Intel and Grasso is buying Facebook. Finerman said to buy Macy's and Adami is a buyer of Lions Gate Entertainment (LGF).


-- 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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