Friday was a big day for tech investors with not one but two major catalysts influencing trade – one coming from Apple the other Google.
Apple
In an attempt to stem what appeared to be a blossoming crisis, Apple said it will give free protective cases to buyers of the iPhone 4 to alleviate the so-called "death grip" problem in which holding the phone with a bare hand can muffle the wireless signal.
Apple CEO Steve Jobs announced the giveaway Friday during a news conference at the company's headquarters, even as the company denied that the iPhone 4 has an antenna problem that needs fixing.
The more than 3 million people who have already bought the iPhone 4 and new buyers through Sept. 30 will all be eligible.
People who already purchased the $29 "Bumper" cases will be refunded.
What’s the takeaway?
Given how much Apple’s customers love Apple I think they hit a home run, muses CNBC's Dennis Kneale.
I’m a buyer of Apple right here at these levels, says Pete Najarian on the Halftime Report. I’d probably do it through options – look at a call spread.
Google
After sifting through earnings more carefully investors came to realize Friday that Google is spending more to maintain its commanding lead in Internet search.
To help achieve its goals, the company added nearly 1,200 employees in the second quarter to end June with more than 21,800 workers – that’s nearly 30% more new workers than the Street was expecting..
With its payroll swelling at the fastest rate in four years, some of Google's expenses are climbing faster than its revenue.
Adding to the headwinds, about one-third of the company's revenue comes from Europe, and the weaker euro meant customer payments made with the currency translated into fewer dollars than a year ago.
What’s the trade?
I just think Google is too big, muses Patty Edwards of the Halftime Report. Companies this size have a tough time moving the needle.
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Trader disclosure: On July 16, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (GE), (MON), (POT), (VALE); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman’s firm owns (BAC); Finerman owns (BAC) and (BAC) preferred; Finerman’s firm owns (BP) calls; Finerman’s firm owns (JPM); Finerman owns (JPM); Finerman’s firm owns (SPX) puts; Finerman’s firm is short (IJR); Finerman’s firm is short (MDY); Finerman’s firm is short (SPY); Finerman’s firm is short (IWM); Jon Najarian owns (GS) put spreads
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