‘Fast Money’ Recap: Now’s the Time for Investors to Buy Twitter

NEW YORK (TheStreet) -- Shares of Twitter (TWTR) climbed 7.5% on Wednesday, following encouraging commentary from the company's Analyst Day. According to Steve Grasso, director of institutional sales at Stuart Frankel, the stock is poised to move higher, especially if the Street warms up to the new user metrics the company plans to use. He is long the stock. 

"I think it's put in a bottom," Brian Kelly, founder of Brian Kelly Capital, said in regards to Twitter. The company has a unique, valuable platform.

The stock will probably move higher into its next earnings report, said Karen Finerman, president of Metropolitan Capital Advisors. However, the valuation is too high for her so she's staying away from the stock. 

Management seems out of touch at the moment, according to Guy Adami, managing director of stockmonster.com, but they will get it right moving forward. He cited Facebook's (FB) CEO Mark Zuckerberg as an example. Investors who are long, but nervous about their long position can use $40 as their stop-loss.

There are some 500 million users that access Twitter but don't log on, said Neil Doshi, co-head of tech and media at CRT Capital. If the company can find a way to monetize those users, the stock will become much more valuable.

Twitter wasn't the only company with positive news Wednesday as Macy's (M) topped third quarter EPS estimates. The company purposely lowered full-year estimates, Finerman urged. The company has great management and should perform well going forward. The stock climbed 5% on the day. 

Adami agreed, adding that the stock seems poised to surpass $65 per share, before moving higher over the next 12 months. 

Unfortunately, J.C. Penney (JCP) didn't do as well. The company saw revenues decline slightly year-over-year on its way to losing 77 cents per share for the third quarter. Both Kelly and Grasso said investors should avoid the stock.

Cisco Systems (CSCO) is also slightly lower in after-hours trading following its third quarter earnings report, despite beating on top and bottom line estimates. Adami reasoned that the stock is likely to decline toward $20. He advised shareholders to sell now and buy the stock back at a lower level. Kelly agreed. 

Emerging market and the U.S. cell phone carriers are the likely culprits behind Cisco's lower-than-expected guidance, according to Mark Sue, managing director at RBC Capital Markets. Cisco's would have a chance at growing the business if the company would consider shedding some its beleaguered businesses. 

Grasso didn't have much love for Cisco and called International Business Machine (IBM) a long-term short. Adami added that investors should stay long Apple (AAPL) , which continues to trade well regardless of what the overall market is doing. 

"We're still pretty optimistic," Adam Parker, chief U.S. equity strategist at Morgan Stanley, said in regards to the broader market. Too many investors expect the bull rally to come to an end simply because it has been ongoing for five years. But so far, there doesn't seem to be a reason why the rally should stop, assuming the U.S. economy continues to do well. 

A more subtle rally could continue well into the future, he argued, possibly until 2020. Parker said he expects earnings to increase 7% over the next twelve months.  His top sector picks include retail, health care, and technology. 

For their final trades, Kelly is a buyer of the ProShares UltraShort Yen ETF (YCS) and Grasso is buying Best Buy (BBY) . Adami said to buy FireEye (FEYE) and Finerman is a buyer of Rentech Nitrogen Partners (RNF) .

-- Written by Bret Kenwell 

Follow @BretKenwell

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