'Fast Money' Recap: Tesla's a Buy Despite the 4Q Guidance

NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA)  rose 7% in Wednesday's after-hours trading session after reporting better-than-expected third-quarter earnings results. While fourth-quarter guidance was lower than previously reported, that didn't matter to Steve Grasso, director of institutional sales at Stuart Frankel, who said the stock is a buy. 

Tesla continues to increase its gross margins, he added. Investors can buy the stock and use the 200-day moving average as a stop-loss, near $226. 

Guy Adami, managing director of stockmonster.com, agreed with Grasso, saying the stock looks good on the long side. Fourth-quarter guidance was lower due to having supply constraints on the Model S, not because demand was weak. 

Dan Nathan, co-founder and editor of riskreversal.com and Tim Seymour, managing partner of Triogem Asset Management, disagreed, both saying investors should avoid the stock. Seymour added the stock's momentum appears to be waning and is trading with a "valuation that is totally not supported."

Jamie Albertine, president of equity research at Stifel Nicoloas, sided with the bulls. He has a buy rating on Tesla with a $400 price target. Production will take a hit in the short term as the company makes adjustments to the assembly process for additional vehicle features. These improvements will ultimately increase the selling price of the company's vehicles, he concluded. 

Whole Foods Market (WFM) is also being pushed higher in the after-hours trading session, up 7.3% following an earnings per share beat. The stock could get a squeeze up to $45, Adami said. 

Nathan agreed, saying investors who are buying the stock near current levels should use a stop-loss at $40. Seymour argued that investors should wait for a pullback to the range of $36 to $39 before getting long.

Unfortunately for Qualcomm (QCOM) , shares fell 6% in late trading. The fourth quarter wasn't good and 2015 guidance was "disastrous," according to Adami. Buy the stock in the low $70s, Nathan said. One-quarter of the company's market cap is made up of cash and Qualcomm has no debt, he added. 

Shares of FireEye (FEYE) were pummeled in Wednesday's trading session, down 15% following disappointing earnings results. Chairman and CEO David DeWalt argued that FireEye is one of the fastest-growing companies "in all of enterprise." Revenue grew 168% year over year but DeWalt said billings are the forward-looking metric investors should pay attention to. Billings grew 133% year over year. 

Top-line growth remains incredibly strong and the company continues to take market share, he said. Hopefully over time the stock price will begin to act more bullishly as the business continues to improve. Currently, shares have overreacted to the downside, he concluded. 

The stock isn't "terribly cheap" but the growth is pretty exciting, Seymour said. He is "neutral" on the stock. Investors should buy the stock, Adami reasoned, adding the cyber security business is strong. Nathan agreed but is waiting for the stock to decline to the mid-$20s before getting long. It's not management's fault investors bid the stock up so high earlier in the year, he added. 

Grasso said he would rather buy Palo Alto Networks (PANW)  but suggested using a $99 stop-loss.

Jens Nordvig, FX strategy head at Nomura Securities, said the U.S. dollar is likely to continue its bull run higher. The euro seems likely to move higher as well, but only temporarily. After the pop, investors can look for the euro to continue its decline. 

For their final trades, Grasso is buying Southern Company (SO) and Seymour is a buyer of the Market Vectors Oil Services ETF (OIH) . Nathan is a seller of Tesla if the stock fails to find support near $250 and Adami is buying Medtronic (MDT) .

-- Written by Bret Kenwell

Follow @BretKenwell

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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