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When Genius Fails

Both Starbucks and Dell remain in a rut ever after the return of their celebrated founders. So, how should you trade?

Shares of Starbucksfell sharply on Thursday after the coffee retailer predicted second-quarter earnings below analyst expectations. Starbucks cited the weakening U.S. economy and the cost of its turnaround plan.

I’m disappointed with Starbucks CEO Howard Schultz’ since his return, says Jeff Macke. I wish he would gut the place and not try and turn things around in incremental steps.

With Burger King , McDonald’s and other fast food restaurants getting into gourmet coffee, I think Starbucks needs to get it together now, Pete Najarian adds.

I don’t agree, counters Karen Finerman. Howard Schultz has only been back as CEO since January. Give him more time.

Meanwhile, company officials aren't talking, but speculation is growing that Dell plans to acquire Fort Worth-based RadioShack .

I think the way to play Michael Dell’s comeback is to buy Hewlett Packard , Jeff Macke says with exasperation.







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Trader disclosure: On Apr. 24, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (YHOO), (MSFT), (INTC); Pete Najarian Owns (AAPL), (NOK), (TSO), (XLF), (YHOO); Pete Najarian Owns (CHK) Calls, (DD) Calls, (MSFT) Calls, (POT) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (WMT), (YHOO), (MO), (PM), (JCP); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (COF); Charles Schwab Is A Sponsor Of "Fast Money"

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