NEW YORK (TheStreet) -- Rumors are surfacing that Twitter (TWTR) is in talks to acquire Shots, the social media application known for "selfie" pictures. The app has a small user base of roughly three million people and is popular in the 13- to 18-year-old group.
This report comes just hours after CFO Anthony Noto erroneously sent out a tweet that seemed to be meant for a direct message, out of the public eye. As a result, shares of Twitter closed lower by 1% on Tuesday.
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Steve Grasso, director of institutional sales at Stuart Frankel, said Noto may have sent the tweet on purpose to "test the waters" and see how investors would react. The company needs to find a way to engage its users, he said.
It's clear that Twitter needs to make a move in order to boost its user growth, said Tim Seymour, managing partner of Triogem Asset Management. But Twitter is still relatively small and won't be able to make some of the big acquisitions that some investors seek.
If shares of Twitter decline to $36, investors should "buy it with both hands," according to Brian Kelly, founder of Brian Kelly Capital. The company needs to figure out a way to monetize its core platform.
Hewlett-Packard (HPQ) is another tech stock in the news. Shares are down 1% in after-hours trading following the company's earnings release. Management said the company will split into two enterprises to create shareholder value.
The split will take a while to go into effect, said Karen Finerman, president of Metropolitan Capital Advisors. Investors should wait a pullback before getting long. The stock has rallied significantly since its October lows and Grasso said to take profits. Seymour called HP a "hold" at current levels.
Amit Daryanani, hardware analyst at RBC Capital Markets, said the HP split won't help drive revenue growth. 3-D printing could have an impact in the future, but right now HP doesn't expect to have a product in full production until 2016. Even when it does have it in full production, it's unlikely to significantly "move the needle," he concluded.
Apple (AAPL) surpassed the $700 billion market cap level in Tuesday's session. Seymour, admitting he's nervous after the big run, is staying long because of the company's strong ecosystem. The stock can go higher, Grasso reasoned, while Finerman called Apple a "hold" near current levels.
Andrew Uerkwitz, senior analyst at Oppenheimer & Company, raised his price target on Apple to $130 from $115. iPhone 6 sales will be strong through 2015 and possibly into 2016, he reasoned. The company will continue to take market share from Android-based phones due to its stronger and more user-friendly ecosystem. China poses a medium-term risk to Apple because of increasing competition.
The trading panel discussed what investors could consider selling Wednesday.
Seymour is a seller of Southwest Airlines (LUV) and JetBlue Airways (JBLU) because a potential jump in oil prices will weigh on the stocks. Kelly said to take profits in the long U.S. dollar trade. Finerman is taking profits in the SPDR Retail ETF (XRT) and Grasso is selling the Energy Select Sector SPDR ETF (XLE) .
Aaron Jagdfeld, CEO and president of Generac Holdings (GNRC) , said both residential and commercial generator sales should be strong this winter, while generator sales to the cellphone tower market is a reliable, long-term growth opportunity.
Generac should focus on making services and maintenance part of the business, Grasso said. It would make for more consistent and steady revenue. Kelly and Seymour both like shares of Generac near current levels. Seymour added that the valuation is not that expensive.
For their final trades, Kelly is buying the Market Vectors Gold Miners ETF (GDX) and Grasso is a buyer of KB Homes (KBH) . Seymour said to buy the Market Vectors Oil Services ETF (OIH) and Finerman is selling out-the-money call options against her long Macy's (M) position as a hedge.
-- Written by Bret Kenwell