Tomorrow's Trades: ERTS Hurts, iPhones in Aisle 3 and Barak Buildout 2.0
Electronic Arts plummeted today in the afterhours, dropping more than 7%. Dylan reports that the company has said the 2009 forecast it gave several weeks ago at the end of October is now "no longer relevant." It hasn't offered any newer guidance, only that "it's unclear where things are going."
Macke is philosophical about video game cycles, saying if there is a next cycle, whoever's king at the start of it won't be at the end of it. EA was the "big daddy" going into this latest video game cycle and look at it now!
iPhone at Wal-Mart?
Apple, unlike EA, has shined -- it's up 9% these past three trading sessions. Adding fuel to the fire is the strong rumor that the iPhone will be available at Wal-Mart before Christmas. Gene Munster, senior research analyst at Piper Jaffray, joins the Fast Money crew to offer his thoughts.
Gene gives the rumor an 85% chance of being true, and anticipates an announcement soon. Wal-Mart already sells iPods and phones, so there's no branding problem.
This would be a "major channel" for Apple, which might easily double its number of current sales at the Apple Store. The number of Wal-Mart stores compared to Apple Stores suggests the giant retailer could match the Apple Store's current numbers of iPhones moved even if they sell only a small number per location.
Furthermore, Wal-Mart has a much larger base of customers -- some of whom never shop at the Apple Store, so there won't be a lot of cannibalization of Apple Store shoppers. "That's why this is an important channel for Apple," says Munster.
Speaking of Apple's surge in general, he notes that Mac computer growth is at 30% for the final quarter. Whether that's sustainable is not clear, but the Mac is performing very well. "The iPods have come and gone in terms of their day in the spotlight," he says. "But it seems like the Mac is really carrying the story for the December quarter."
Finally, in response to Dylan's question on whether Apple earnings will take a hit, Gene says his firm has lowered their numbers somewhat, but "in terms of what is going on with Apple, it seems they have weathered the storm really well."
Barack Buildout 2.0
President-elect Barack Obama's infrastructure plan includes a strong investment in technology -- he talked about the need for building out broadband access across the country. "Is it possible to invest in front of this?" Dylan asks.
Pete definitely feels so, and points to tech stocks like Cisco and Juniper -- keeping an eye on those stocks definitely is a good idea. He says that other names worth keeping on your radar are Ciena and Akamai -- both big names in the networking space.
Tim agrees that it's all about "efficiency on the business side" so networking and storage stocks are the ones to watch. He likes and .
But Macke says "wait for the news." Obama's infrastructure plans are too vague now, with no definite timetable, so he feels it's too early to play these stocks.
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Trader disclosure: On Dec. 10th, 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 (DIS), (WMT), (MSFT), (MCD); Seymour Owns (AAPL), (BAC), (ETFC), (F), (MER), (CX); Seygem Asset Management Owns (FXI); Finerman's Firm Owns (MSFT); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (USO), (BBT), (VNO), (SPG), (COF), (FDO); Najarian Owns (ETFC), (CIEN); Najarian Owns (DRYS) And Is Short (DRYS) Calls; Najarian Owns (STX) Calls; Najarian Owns (UYG) Calls
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