'Fast Money' Rewind: The week in review
From social media madness to the rocky rollout of Obamacare, our traders had you covered in a big week of CNBC's "Fast Money."
Monday saw the highly anticipated release of Apple's fourth-quarter earnings. The tech giant didn't disappoint, registering a beat on the top and bottom lines. But despite the surprise, the stock initially sold off on a weaker-than-expected gross margins projection for the current quarter.
Portfolio manager and Apple investor Ryan Jacob of Jacob Asset Management picked apart the forecast, saying, "I think a lot of the discussion of gross margin is more a byproduct of the iPad and iPhone refreshes, so I think it should be somewhat expected."
OptionMONSTER's Pete Najarian agreed, saying, "I look at this gross margin, I think it's an overreaction." Najarian recommended buying the weakness, saying, "I think this is an opportunity. ... I'm very bullish going into the end of the year." Jon Najarian called the iPhone sales number "tremendous" and said he thinks the stock "finishes a lot closer to $570 by year-end than $500."
Triogem Asset Management's Tim Seymour saw some positives in Apple's quarter but was cautious about the lowered forecast. "When you have that kind of guidance that's not so great, I get a little concerned as an investor," he said. Apple eventually turned positive during the hour, and found itself back in the green for 2013.
Twitter also made headlines Monday, as the company officially kicked off its IPO roadshow.
Pivotal Capital analyst Brian Wieser gave Twitter its second pre-IPO "buy" rating, and joined the crew to explain his call. Wieser said he felt content investing in Twitter mainly because he's at ease with the company's management.
"If you get comfortable with them first ... then you can get comfortable with the product and the traction that it has with advertisers," he said. Regarding prospects for international growth, Weiser noted that there is "a lot of room to go in different countries."
On Tuesday, both the Dow Jones industrial average and the S&P 500 closed at new record highs. The Dow was helped midday by IBM, as the company announced a $15 billion increase to its stock-buyback program. Yet ISI Group's Brian Marshall remained cautious on the stock.
"This is the only company we have a cautious rating on. It's simply too big to grow," he said. Marshall also warned that IBM's stock could drop more than 15 percent if the market reverses its upward trend. "I still think there's material downside in IBM at this point," he said.
The traders tackled the rocky rollout of the Affordable Care Act as well on Tuesday, and the impact it could have on health-care stocks. OrbiMed Advisors' Sam Isaly said he'd stay away from any stocks that have direct exposure to Obamacare. "A better place would be new technologies and new drugs," he said.
Social media and Internet stocks sparked healthy debate Tuesday, as LinkedIn and Yelp reported earnings after the bell. Both companies fell in the after-hours session, with LinkedIn dropping on lower revenue guidance and Yelp reporting a wider-than-expected earnings-per-share loss for the third quarter.
Gene Munster, a Piper Jaffray senior research analyst, weighed in on both companies, saying: "We'd be buyers of LinkedIn. We're not as optimistic on Yelp." Munster also called LinkedIn "the unchallenged leader" in the social-recruiting market.
The social media buzz continued Wednesday when Facebook reported better-than-expected earnings after the bell. Traders initially liked what they saw from the quarter, and the stock traded higher by more than 15 percent in the after-hours session to all-time highs.
Bob Peck of SunTrust Robinson, who has a "buy" rating and a $55 price target on the stock, broke down the report. "Ad revenues accelerated ... mobile continued to grow ... operating margins surprised investors to the positive side," he said.
Stephanie Link, director of research at TheStreet, is long Facebook, and liked what she saw from the company's earnings report. "These numbers are really impressive. The expectations were so high, and they almost beat on every metric," she said. Seymour agreed, saying, "This is very positive for these guys ... they have a lot of room to grow."
But despite all the positives, the stock eventually lost traction and traded into negative territory during the earnings call.
CNBC's Julia Boorstin reported that Facebook saw stable youth engagement but a decrease in usage among younger teens. "They're acknowledging there is weakness in the daily numbers for those very youngest Facebook users," she said.
Boorstin said that the company was working to correct the downturn. "They did say they're going to be working to address that, trying to develop new services and tools to make sure they engage that younger demographic."
Wednesday also marked the second day of the October FOMC meeting, with the Fed deciding to hold steady on its quantitative easing program. JPMorgan's chief U.S. equity strategist, Tom Lee, explained that the Fed is still important to the rally, and said he remains bullish on equities. "I think there are still a lot of bargains out there," he said.
On a Halloween Thursday edition of "Fast Money," the traders discussed whether they were getting spooked by the monster October run in the markets.
Brian Kelly pointed toward the weakness in the Russell 2000 small-cap index, which had been outperforming the markets this year, as a frightening indicator. "When you start to lose the generals, you start to lose the trend," he said.
John Rogers of Ariel Investments said that investors shouldn't be spooked by the strong October gains. "I think we are fairly valued, I'd say we're sort of in the fifth inning of the recovery, and the market still has a good ways to go as we get toward the end of the year."
(Read more: Beware of missing out on stock rally: John Rogers)
With less than 40 trading days to go in 2013, only time will tell whether stocks can keep up the big momentum into year's end.