NEW YORK (TheStreet) -- Shares of Twitter (TWTR) are rocketing higher, up almost 8% on Wednesday as positive commentary from the company's Analyst Day is exciting investors. The company discussed expanding direct messaging platform, building out more applications, and adding suggestions for new users about interesting news and who to follow.
On CNBC's "Fast Money Halftime" TV show, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, is long the stock and said global advertising revenues have actually been pretty good. However, the company needs to expand its user growth and engagement, which the company's new initiatives should help.
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Twitter's advertising growth has been "highly impressive," according to Pete Najarian, co-founder of optionmonster.com and trademonster.com. The company needs to focus on international expansion, he added.
The stock has likely bottomed in the short-term, said Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC. Investors can stay long the stock for now, but next quarter's user metrics will be important to watch.
Facebook (FB) is still the dominant social stock in terms of advertising, said Jon Najarian, co-founder of optionmonster.com and trademonster.com. However, shares of Twitter have support, because investors know that if the stock goes too low, it will be a buyout candidate.
The conversation quickly turned to retail, after Macy's (M) reported third-quarter earnings. The company beat on EPS estimates, missed revenue expectations, but provided positive commentary on the conference call. Shares are higher by 5% as a result.
Stick with Macy's, Weiss said. The company's management is the best in the business and lower oil prices will help consumers in the holiday season. Brown added that stores like Target (TGT) and Walmart (WMT) have the customer base that will benefit the most from lower energy prices.
The Najarians were a bit more specific with their retail picks, with Pete saying he expects Foot Locker (FL) to outperform through 2015, while Jon likes TJX Companies (TJX) on the long side for the next six to twelve months.
In an interesting retail twist, eBay (EBAY) is partnering with Rebecca Minkoff to create an in-store, VIP experience for customers who want to see great fashion products, order it to their dressing room and try on what they need more comfortably.
Minkoff, the creative director for Rebecca Minkoff, says that the company is constantly trying to "push the envelope" when it comes to using technology to improve customer experiences. For eBay's part, Steve Yankovich, vice president of innovation and new ventures at eBay, says it's the company's way to get a "foot in the door" in traditional brick-and-mortar outlets.
Jon Najarian said he likes eBay, but is waiting for a pullback before getting long. Brown agreed, but said he wants to own the stock closer to the PayPal spinoff. Weiss says Apple (AAPL) is the most attractive large cap tech stock, which may have 10% more upside.
Speaking of Apple, Steve Milanovich equity research analyst at UBS, upped his price target on the stock to $125. He argued that analysts are underestimating iPhone sales for the upcoming quarter, specifically in China. He cited a recent survey by his firm that suggests up to 19% of current Chinese Samsung (SSNLF) users plan to switch to the new iPhone, and generally prefer the iPhone 6 Plus. That is good for margins.
The conversation turned to the homebuilders, as two of the traders disagreed on the outlook for the group. When interest rates go up, home affordability goes down, Weiss argued. This will take the air out of the homebuilders in 2015, assuming rates do move higher. Use the recent strength in the industry to take profits.
Not so fast, Pete Najarian said. Toll Brothers (TOL) , D.R. Horton (DHI) and Beazer Homes (BZH) have all reported solid results. Pent up demand for housing is starting to boost these companies' performance and once rates begin to move higher, would-be homebuyers will start to jump into new homes, as to not miss the low-rate ship.
-- Written by Bret Kenwell