NEW YORK (TheStreet) -- Stocks fell Thursday with the S&P 500 off 1.04%. Worse, the iShares Russell 2000 ETF (IWM) declined by 2.1% and stopped near critical support, Guy Adami, managing director of stockmonster.com, pointed out during CNBC's "Fast Money."
If investors are bullish on small-caps, the pullback is a "screaming buy," Adami said. He also pointed out the "substantial" reversal in Apple (AAPL) stock, over 5% since reporting earnings. The current price action has been relatively bearish but the stock could find support near $125.
Meanwhile, quality biotech stocks are being weighed by selling pressure in exchange-traded funds such as the Nasdaq Biotechnology ETF (IBB). Adami said a company like Amgen (AMGN) looks like a buy after the recent selloff and "fantastic" earnings results, he said.
The selling pressure could continue, especially with levered ETFs driving biotech stocks lower, said Jon Najarian, co-founder of optionmonster.com and trademonster.com. However, once the selling become overdone a sharp rally wouldn't be surprising.
The selling pressure in biotech could have more to do with investors looking to reduce risk and diversify away from what's perceived as risky equities, added Tim Seymour, managing partner of Triogem Asset Management.
Gilead Sciences (GILD) reported earnings on Thursday, crushing top- and bottom-line expectations with revenue up 52% year over year. Trading at just nine times forward earnings, sporting a hefty share repurchase program, and having strong momentum for its major drugs, the stock should be higher than the 2.2% after-hours rally, Adami argued.
LinkedIn (LNKD) has become the latest social media stock to endure a significant decline following earnings. The stock closed lower by 2% on Thursday but plunged 21% in after-hours trading after the company provided much weaker-than-expected guidance for both the second quarter and full year.
It seems like most analysts miscalculated the impact the Lynda.com acquisition would have on LinkedIn's results, according to Colin Gillis, senior technology analyst at BGC Financial. The acquired company also has margins of just 5% to 10%, far below LinkedIn's current margins of roughly 25%, so investors will need to factor that in too, he said.
However, the second half of the year tends to be better for LinkedIn because hiring is typically stronger and the ad business performs better. "It's a very good company" and CEO Jeff Weiner is a good executive, according to Gillis, who has a hold rating and $285 price target on LinkedIn.
Below $200, shares of LinkedIn are in "no man's land," Seymour said. Investors should wait to see how it trades on Friday, but said it needs to hold above $200. Adami agreed but added that management's credibility comes into question after raising guidance last quarter and lowering it this quarter.
For their final trades, Seymour is buying Apple between $118 and $122, while Najarian is a buyer of Skyworks Solutions (SWKS). Finerman said to buy Golar LNG Limited (GLNG) and Adami is buying Freeport-McMoRan.