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After Hours Action: eBay, F5 Networks

It was the best of times, it was the worst of times. With apologies to Charles Dickens, that classic line written in 1859 aptly describes these two tech stocks now!

AFTER HOURS ACTION: EBAY

Shares of eBay climbed in extended trade after the company posted quarterly results that exceeded analysts' expectations and raised its outlook for the fiscal year.

"We delivered a strong fourth quarter and a solid year, driven by our customer focus, commitment to technology-led innovation and our operating discipline, which is enabling us to reinvest in growth," said John Donahoe, CEO of Ebay, in a prepared statement.

"We are driving strong global growth at PayPal and strengthening our core eBay business. And we are innovating quickly in areas such as mobile, which is helping to position us at the forefront of trends shaping the future of shopping and payments."

Looking at the numbers more closely, the online auction company reported fourth-quarter earnings of 52 cents a share while analysts who follow the company expected 47 cents a share, according to Thomson Reuters.

Also, eBay boosted its full year revenue guidance to between $1.90 a share and $1.95 a share, excluding one-time items. Analysts' earlier per-share consensus stood at $1.85 a share.

What should you make of it? What’s the trade?

I like eBay, says Guy Adami, but the chart concerns me. I think it needs to break out above the 52-week high of $31.64 before I’d go long.

I see no reason to jump into eBay right now, says Tim Seymour. If you have profits I’d sell into strength.

I’m a buyer of weakness, counters Brian Kelly. I’m excited by the volumes going through PayPal which are up about 500% since 2009. I think eBay is slowing becoming an e-commerce global payment company. As merchants accept PayPal, the stock could gain traction.

> Click here for more on eBay earnings

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AFTER HOURS ACTION: F5 NETWORKS

In extended trade shares of F5 plunged 20% after the company disappointed the Street with some weaker-than-expected results.

The culprit here was the revenue number; the company reported EPS of $0.88 on revenue of $268.9 million. This compared with consensus EPS estimates of $0.83 on revenue of $270.34 million.

With the stock priced for perfection, it appears investors sold first and intend to ask questions later.

However, according to a Reuters report, F5 received a takeover offer last year and investors think it remains a potential target for tech giants such as IBM and HP.

Is the sell-off an opportunity? Or should you run in the other direction

I expect further downside in F5, says Joe Terranova, as well as all the cloud names. And if you’re bullish, I’d recommend waiting for the stock to stabilize before going long. When you see a stock down this much in the after market you have to respect the price action.

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IBM, APPLE CAN’T LIFT TECH

On Wednesday the Fast traders were very much focused on softness in big cap tech land, with the Nasdaq closing sharply lower.

LED stocks were among the drags, with investors dumping Cree after the company reported worse-then-expected numbers, hurt by lower sales in Asia.

However, there were no other clear catalysts to speak of. In fact, Apple profits blew past expectations, while IBM results also wowed the crowds, yet tech couldn't rally.

What should you make of it? How should you trade tech?

Looking at Apple, I think we may be looking at the kind of reversal in Apple that takes it down to $310, says Guy Adami.

I’d be a buyer at $310, says Karen Finerman. But I don’t think it gets there. And, of course, there’s a big wildcard in the health of Steve Jobs.

If you’re looking to play the space, I’d look at IBM, says Tim Seymour. It’s broadly diversified and it’s performing well in the face of weakness in the sector broadly.

For me that big catalyst for tech will be Google earnings, says Joe Terranova. Either they reverse the negative sentiment or they confirm that the weakness is somewhat warranted.

I’d use weakness to get into Qualcomm, says Brian Kelly. I think the selloff is a hiccup.

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IS GOLDMAN GOLDEN NO MORE?

Financials were the biggest drag on the markets Wednesday after Goldman Sachs earnings showed a 53% decline in quarterly profit.

Perhaps most troublesome, net revenue in fixed income, currency and commodities or FICC slid 39 percent from the third quarter to $1.64 billion, reflecting what Goldman called "generally low client activity levels."

What’s the bank trade?

We haven’t seen this kind of miss from Goldman in quite some time, says Guy Adami. I suspect we may see some turnover in the FICC unit. There’s probably room for a greater pullback in this stock.

I’m a buyer of the pullback, says Steve Cortes. I’d wait and see if the stock pulls back more after Morgan Stanley reports, but then I’d pull the trigger. Q4 was a tough quarter for the bond market and I'm not surprised that Goldman didn’t hit the ball out of the park. But going forward I think Goldman benefits from increased M&A as the economy recovers.

Goldman broke below its 50-day, reminds Joe Terranova. That hasn’t happened recently and it makes me cautious.


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Trader disclosure: On Jan. 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour owns (AA), (BAC), (F), (FXI) and (MPEL). Guy Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU). Finerman owns (AAPL), (BAC), (BP), (HPQ), (GOOG), (C), (MSFT), and (WFC) preferred. Joe Terranova Owns (GLD) Puts. Joe Terranova Owns (PCX) Puts. Terranova Owns (ACI) Puts. Joe Terranova Owns (TBT) Puts. Joe Terranova Owns (UPL), (VRTS), (PVH), (GM), (CVI), (CNQ), (LTD), (C), (PEP) and (CPX). Joe Terranova Is Short (JOYG).

GE is the parent company of CNBC

TIM SEYMOUR
Seymour's firm is short (BHP)

GUY ADAMI
Adami's wife works for (MRK)

KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (BBY)
Finerman's firm owns (BP)
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM)
Finerman owns (JPM) and (JPM) leaps
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (WMT)

JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
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 (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (IPI)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (QCOM)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (RKH)
Accounts Managed By Kanundrum Capital Are Long The Euro
Accounts Managed By Kanundrum Capital Are Long (XLE)
Accounts Managed By Kanundrum Capital Are Short The Yen

CARTER WORTH
Worth has no disclosures

STEVE CORTES
Cortes has no disclosures

VINCENT ANDREWS
Within the last 12 months, Morgan Stanley has received compensation for investment banking services from (MOS)
In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from (MOS)
Within the last 12 months, Morgan Stanley has received compensation for non-investment banking services from (MOS)
Withing the last 12 months, Morgan Stanley has provided investment banking services or has an investment banking client relationship with (MOS)
Morgan Stanley & Co. Inc is a market maker in (MOS)

DANIEL CLIFTON
Clifton has no disclosures

MIKE KHOUW
Cantor Fitzgerald & Co. have no disclosures on XLE

PETE NAJARIAN
Pete Najarian has no disclosures


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