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After Hours Action: Dell, Salesforce.com, Gap

Shares of Dell popped as much as 5% in extended trade after the computer giant reported profits that blew past expectations.

By the numbers, the PC maker reported a profit of 45 cents a share in the third quarter, versus 23 cents a share in the same period last year.

Sales for the most recent quarter mushroomed to $15.4 billion, up from $12.896 billion a year ago.

Dell's gross margins, which are closely watched by investors, were higher than expected at 6.7 percent.

How should you position? What’s the trade?

If you stack Dell up against HP - Dell is not expensive says Guy Adami. If it holds above $14.50 I think the stock may try and break out.

With Dell above the 200-day, if you have a stomach for risk you might want to consider stepping on board for upward momentum, adds Joe Terranova. But personally - off these results -- I’d be inclined to look at HP ahead of their earnings next week.

In the space I’m close to buying Cisco, says Karen Finerman. I just find the valuation too compelling.

> For more coverage of Dell earnings click here


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AFTER HOURS ACTION: SALESFORCE.COM

Shares of Salesforce.com shot 7% higher in extended trade after the company reported a small increase in quarterly profit, as more customers signed up for its "cloud computing" services. The firm, which specializes in running software applications on its computer servers on behalf of clients, also forecast higher-than-expected sales for next fiscal year.

By the numbers Salesforce.com reported fiscal third-quarter profit of $21.1 million, or 15 cents per share, compared with $20.7 million, or 16 cents per share, in the year-ago quarter. The per share figure this quarter was lower due to a larger number of shares outstanding.

Excluding some items, it reported profit of 32 cents per share. That beat Wall Street's average forecast of 31 cents, according to Thomson Reuters I/B/E/S.

Sales rose 30 percent to $429 million, beating analysts' average forecast of $410.5 million.

What’s the trade?

I think Salesforce is a phenomenal cloud story, says Joe Terranova. I’m out but I think the stock is great.

I owned the stock and shorted calls against it, says Jon Najarian. In other words the stock will be called away from me and I don’t plan to buy it again.

> For more coverage of Salesforce.com earnings click here

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AFTER HOURS ACTION: GAP

Shares of Gap slipped modestly in extended trade after the company posted a slight decrease in net profit that met Wall Street estimates and maintained its 2010 profit outlook.

By the numbers the company said net profit in its third quarter fell 1 percent to $303 million, or 48 cents per share, from $307 million, or 44 cents per share, a year earlier.

Revenue rose 2 percent to $3.65 billion, above the $3.58 billion expected by Wall Street.

What’s the trade?

I didn’t think the quarter was that bad, but they’re showing an inventory build, says Guy Adami. If the stock trades below $20 I’m a buyer.

> For more coverage of Gap earnings click here



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Trader disclosure: On November 18, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (UPL), (C), (PEP), (VRTS), (OXY), (GS), (POT), (AAPL), (ORCL), (MCD), (NKE), (IBM); Finerman owns (AAPL); Finerman’s firm owns (GM); Finerman owns (DYN); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Long (GM); Finerman's Firm Is Long (GOOG); Finerman's Firm Is Short (IJR); Finerman's Firm Is Long (JPM) ; Finerman's Firm Is Long Russell Puts; Finerman's Firm Is Long S&P Puts ; Finerman's Firm Is Long (PDE) Call Spreads; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Jon Najarian is Long (BKE); Jon Najarian owns (COP) short calls; Jon Najarian owns (CRM) short calls; Jon Najarian owns (DRYS) short calls; Jon Najarian owns (F) short calls; Jon Najarian owns (FIRE) short calls; Jon Najarian owns (FFIV) short calls; Jon Najarian owns (FSLR) short calls; Jon Najarian owns (DLTR) short calls; Jon Najarian owns (DG) short calls; Jon Najarian owns (WMT) short calls; Jon Najarian owns (FCX) short calls; Jon Najarian owns (FCX) call spreads; Jon Najarian owns (GOOG) call spreads; Jon Najarian owns (LTD) call spreads; Jon Najarian owns (FIRE) call spreads; Jon Najarian owns (GT) call spreads; Jon Najarian owns (GM) converts

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
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For Anthony Scaramucci
Scaramucci and SkyBridge Captial own (F)
Scaramucci and SkyBridge Capital own (LVS)

For Barry Ritholtz
Funds managed by Ritholtz own (C)

For David Riedel
***No Disclosures***

For Dan Nathan
***No Disclosures***

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