'Fast Money' Recap: Facebook and Analysts' Expectations

NEW YORK (TheStreet) -- The S&P 500 climbed higher on Wednesday, finishing the session up 0.18%.

On CNBC's "Fast Money" TV show, the trading panel analyzed corporate earnings. 

Dan Nathan, co-founder and editor of riskreversal.com, said Facebook (FB) reported a good quarter despite high expectations from analysts and investors. 

Tim Seymour, managing partner of Triogem Asset Management, added that Facebook continues to monetize its mobile platform. The stock isn't that expensive, trading at just 35 times next year's earnings, with 60% revenue growth. 

Brian Kelly, founder of Brian Kelly Capital, said the company can grow to be much bigger if it can scale its mobile and targeted advertisements. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, called it a "blowout quarter" for Facebook, adding, "I think the stock continues to move higher."

Robert Peck, Internet analyst at SunTrust Robinson Humphrey, has a buy rating on shares of Facebook with a $72 price target. He said two-thirds of Facebook's user access the platform daily, and margins continue to remain strong. Expenses are expected to decline while advertising prices continue to increase, he concluded. 

Najarian said he wouldn't use Facebook's result as a "read-through" to Twitter's (TWTR) results. Nathan agreed, but said he would be a buyer of Twitter in the low-$30s. 

Seymour said not to buy Qualcomm (QCOM) at current levels because the stock is hitting a lot of resistance. It is a "fantastic company," however, he added. 

Najarian is long Ariad Pharmaceuticals (ARIA). 

Seymour said investors should consider buying Gilead Sciences (GILD) on a pullback as analysts' estimates are still too low. 

Nathan said AT&T's (T) solid dividend and deal with DirecTV (DTV) make it okay for investors to stay long. 

Seymour said investors should not buy shares of Cheesecake Factory (CAKE) at current levels, given the pressure on margins and the industry. He said the valuation is not yet attractive. 

David Reis, CEO of Stratasys (SSYS), said the industrial and commercial market for 3-D printing looks promising but the consumer market has potential, too. While there will be more competition in the future, he is confident Stratasys can continue to compete. New product introductions should continue throughout the rest of 2014 and accelerate toward the end of the year, he concluded. 

Seymour said Stratasys should be somewhat fearful of Hewlett-Packard (HPQ) entering the 3-D printing space. SSYS is expensive but exciting and seems to have support near $100, he added. 

Kelly said investors should buy Stratasys if the stock declines to the mid-$90s. Narjarian said there's no reason that several 3-D printing stocks could thrive in the future, even when Hewlett-Packard enters the mix. 

As a speculative play, Nathan said he would he would rather buy ExOne (XONE) or Voxeljet (VJET). 

Boeing (BA) fell 2% and was the first stock on the show's "Pops & Drops" segment. Kelly said the company reported good earnings but costs are not controlled. He said to stay short the stock. 

Xilinx (XLNX) dropped 14%. Nathan said the stock doesn't appear to have support until $35. He would avoid it for now. 

Yahoo! (YHOO) jumped 3%. Seymour said to stay long. 

Apple (AAPL) popped 3%. Najarian pointed out that a lot of analysts are raising their price targets to $105 and above. 

Nathan pointed out the bullish options activity in shares of PepsiCo (PEP). Specifically, the 4,500 August $93.50 call options that were purchased for 84 cents apiece. However, he argued PepsiCo and Coca-Cola (KO) are both expensive on a historic price/earnings ratio basis, given that earnings growth is stagnant. 

Seymour argued that PepsiCo has forward catalysts and "emerging market leverage." Kelly said he is a buyer of PepsiCo over Coca-Cola. 

Ingrid Pierce, managing partner at Walkers Global, was a guest on the show. Speaking about alternative investments, she said the European real estate market has been heating up. Specifically, she said London and Ireland are doing well. While the investment is less liquid, investors in these situations are focused on the long term, she concluded. 

For their final trades, Seymour is a seller of the iShares MSCI Turkey ETF (TUR) and Kelly is a seller of Boeing. Nathan is buying Cisco Systems (CSCO) and Najarian is a buyer of Allegheny Technologies (ATI). 


-- 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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