NEW YORK (TheStreet) -- "I don't think Twitter (TWTR) CEO Dick Costolo should be in the hot seat," Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said in Thursday's segment of CNBC's "Fast Money Halftime" show.
The company is still young and is finding the best way to monetize its platform. Long-term investors shouldn't care about the quarter-to-quarters results, Brown reasoned. Instead, Cisco Systems' (CSCO) CEO John Chamber should be on the hot seat. The stock has underperformed its sector and its peers, he argued.
Stephanie Link, chief investment officer of TheStreet and co-manager of the Action Alerts PLUS portfolio, agreed with Brown about Twitter. She added the company recently outlined its plan on how to grow revenues substantially over the long term. She likes the stock.
Twitter may be unique and may be a takeover candidate if the stock declines further, but it's far from cheap, argued Jon Najarian, co-founder of optionmonster.com and trademonster.com. The stock is overvalued until management can actually prove that some of its initiatives will result in increased revenue.
Is everyone forgetting about IBM (IBM) ? No -- Joseph Terranova, chief market strategist for Virtus Investment Partners, didn't forget, pointing out that CEO Ginni Rometty has failed to turn around the company thus far in her tenure. Management needs to get it together, and quick, he suggested.
All the C-suite blame wasn't reserve for tech stocks however, as Link turned to McDonald's (MCD) , saying CEO Don Thompson should be feeling the heat after the stock so drastically underperformed the S&P 500 (SPY) over the past 18 months. Menu items, quality and customer satisfaction can all be improved, she reasoned.
The conversation shifted to oil, as West Texas Intermediate crude oil declined to $75 per barrel. Consumers are expected to benefit from the lower gasoline prices, but the effect has yet to ding many corporate earnings results.
Don't think so short-term, Link urged. The effect will be felt more in the holiday season, as well as the first and second quarter of 2015. Oil prices don't seem to be going higher anytime soon and the impact of lower fuel costs will eventually benefit consumers.
If wages are able to increase in a low oil price environment, the consumer could really benefit and begin spending more, Brown added.
At $75 per barrel, oil prices still look vulnerable, Terranova reasoned. Because of that, he is selling short the iShares Russell 2000 ETF (IWM) , which seems poised to decline 3%. The index has a high correlation to oil prices. However, airline stocks are a big beneficiary of lower prices. The industry seems poised to have a multiyear run to the upside, he said.
Brown agreed, adding that the airline stocks seem like they've had a huge run to the upside. But that's only because the stocks have come from such depressed levels in the first place. It could take years for these stocks to be fully valued, he said.
In other news, Hasbro (HAS) is reportedly seeking a purchase of Dreamworks Animation (DWA) , a deal that could surpass $30 per share. The deal seems too expensive, Link reasoned, although a partnership would be beneficial.
The deal makes sense for Hasbro, Terranova reasoned. The company is searching for growth since it can't generate it organically. A push into content makes sense, even if the price seems steep.
-- Written by Bret Kenwell
TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: CSCO Ratings Report