GO
Loading...

After Hours: Apple - What Must You Know Before You Trade?

Tuesday, 20 Apr 2010 | 5:12 PM ET

The gang spent Tuesday afternoon sifting through Apple earnings with a fine-tooth comb. Here’s everything you need to know before you trade!

In extended trade shares of Apple surged after the firm blew past expectations, with investors particularly excited to see that sales of iPods, iPhones and Macs all exceeded expectations.

(The firm sold 8.75 million iPhones, 10.89 million iPods and 2.94 million Macs in the quarter.)

Looking more closely at the numbers, Apple said it earned $3.33 a share in its fiscal second quarter, up from $1.33 a share last year.

Sales for the most recent period rose to $13.5 billion, up from $8.163 billion last year.

Analysts expected on average that the company would earn $2.45 a share on revenue of $12.036 billion, according to numbers compiled by Thomson Reuters.

Word on the Street
The Fast Money traders take a look at today's top business stories.

Instant Insights with the Fast Money traders

Apple is hitting on all cylinders, says veteran trader Gary Kaminsky. I hate to sound like a cheerleader but there’s no other way to explain it.

The number I always focus on is the Mac number, says Pete Najarian. That’s where their big growth is. Every percentage gain is huge to their bottom line.

If the stock pulls back Wednesday on profit taking, I’m a buyer, says Joe Terranova.

I’m bullish long-term but in the short term I think the stock is priced to perfection, counsels Anthony Scaramucci. I expect it to trade lower on Wednesday. The stock is just screaming higher too quickly.

According to Biryini, buying Apple stock before it reports earnings and selling at the market open the next day has been the most rewarding way to trade the company's results, reminds host Melissa Lee. "Apple has traded up from 4 p.m. to 9:30 a.m. in each of the last four reports, and has traded down from 9:30 a.m. to 4 p.m.," Birinyi observed.

If you’re looking for a downstream trade on the Apple results, I’d look at Marvell and Akamai , counsels Najarian. And I wouldn't take strength in the iPhone to mean bad things for RIM. I think there's plenty of room for both.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On April 20, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Scaramucci Owns (AAPL), Skybridge Owns (AAPL); Scaramucci Owns (BAC), Skybridge Owns (BAC); Scaramucci Owns (C), Skybridge Owns (C); Scaramucci Owns (GE), Skybridge Owns (GE); Scaramucci Owns (GS), Skybridge Owns (GS); Scaramucci Owns (IBM), Skybridge Owns (IBM); Scaramucci Is Long U.S. Dollar, Skybridge Is Long U.S. Dollar; Najarian Owns (BP); Najarian Owns (C) Calls; Najarian Owns (GOOG) Calls; Najarian Owns (JNPR) Calls; Najarian Owns (LVS) Call Spread; Najarian Owns (MCD) Calls; Najarian Owns (YHOO) Call Spread; Terranova Owns (C) May Calls; Terranova Owns (XCO), (SWN), (TER), (HES), (AXP), (MOS), (YHOO); Terranova Is Short (BRE); Terranova Is Short (LCC); Nations Owns (MSFT); Najarian Owns (C) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (MCD) Calls; Najarian Owns (GOOG) Calls; Najarian Owns (ALL) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (TCK); Najarian Owns (MRVL); Edwards Owns (VXX); Cortes Is Short S&P 500 Futures; Cortes Is Short (LVS); Cortes Is Short (WYNN)

For JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (BAC) For Clients
Edwards Owns (GE) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (IBM) For Clients
Edwards Owns (INTC) For Clients
Edwards Owns (JNJ) For Clients
Edwards Owns (JPM) For Clients
Edwards Owns (KO) For Clients
Edwards Owns (MCD) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (RIMM) For Clients
Edwards Owns (RIG) For Clients
Edwards Owns (TOT) For Clients
Edwards Owns (UNH) For Clients
Edwards Owns (WFC) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (PGM) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (VXX)

For Yair Reiner
Oppenheimer & Co. Is A Market Maker In (AAPL)

GE Is The Parent Company Of CNBC



CNBC.com with wires

  Price   Change %Change
AKAM
---
MRVL
---
BB
---
AAPL
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report