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After Hours Action: Yahoo!, Juniper

Tuesday, 25 Jan 2011 | 6:06 PM ET

With so many companies reporting earnings Tuesday, the Fast traders suggest taking a closer look at Yahoo! and Juniper. What must you know?

AFTER HOURS ACTION: YAHOO!

Shares of Yahoo slipped in extended trade after the company' forecast further declines as it struggles to revive growth in the face of intense competition from Google and Facebook.

On the surface earnings didn't look so bad - profits more than doubled from a year ago period.

Looking at the numbers, Yahoo earned $312 million, or 24 cents per share, in the October-December period. That compares with net income of $153 million, or 11 cents per share, at the same time in 2009.

But scratch beneath the surface and you'll find that profit comes from cost cutting not from growth. Revenue dropped 12 percent from the prior year to $1.53 billion.

Also, Yahoo said they’re laying off 100 to 150 workers about 1 percent of Yahoo's work force of roughly 13,500 employees.

“We’ve heard about cuts, now investors are looking to hear about growth,” explains CNBC’s John Fortt.

Also, the company's forecast wasn't anything to shout about. What should you make of it? What’s the trade?

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

Instant Insights with the Fast Money traders

If you’re a long term investor, you’ve got to be concerned about the very serious challenge posed by Facebook which is expected to go public over the next 12-18 months, says Joe Terranova. If you’re a trader, the 200-day is $15.48, he adds. If the stock breaks below that level I suspect we see a lot of selling pressure.

The only people who can cut their way to prosperity are surgeons and butchers and Yahoo! is neither, adds Guy Adami.

If I were to play this stock, it would only be on the hope that private equity comes in and carves this thing apart, counsels Tim Seymour.

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AFTER HOURS ACTION: JUNIPER

Shares of Juniper sold-off in extended trade, after the company issued a tepid outlook; 30 to 33 cents per share, below the market's forecast of 34 cents a share.

The weak forecast trumped Juniper’s otherwise strong results.

Its fourth-quarter revenue rose 26 percent to $1.19 billion. That beat the market's average forecast of $1.12 billion, according to Thomson Reuters.

What’s the trade?

I like the stock and I think the pullback is an opportunity, says Guy Adami.

I’m also a buyer of Juniper on a pullback, says Joe Terranova. I think the fundamentals are positive.

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TECH LED BY CISCO

Tech was the best performing sector on Tuesday with gains led by Cisco .

What’s the tech trade?

In the space, I’d put Oracle and Microsoft on the radar as value plays, says Guy Adami.

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BREAKING NEWS: NIELSEN IPO

According to CNBC’s Kate Kelly, Nielsen’s offering has priced above its expected range at $23. The deal has 2 components, equity and convertible bonds. The offering is expected to generate $2.2 billion.

What’s the trade?

The metrics for measuring media are changing by the minute, reminds Tim Seymour. I’m not a buyer.

I can't get excited either, says Brian Kelly. I’m not sure the business model is sustainable or can show growth.

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STREET FIGHT: GOLD

Gold settled at its lowest level in almost 3 months, on Tuesday. Is the sell-off about over or just getting started?

James West, author of the Midas Letter and part owner of a gold mine tells the desk the declines are nothing more than a temporary correction. He expects the precious metal to end the year between $1,500 and $1,580 an ounce.

Hear why. Watch the video now!

Street Fight: Gold
Gold settles at its lowest level since October 2010. Insight with James West, Midas Letter author.






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Trader disclosure: On Jan. 25, 2011, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Terranova Owns (UPL); Terranova Owns (VRTS); Terranova Owns (PVH); Terranova Owns (GM); Terranova Owns (CVI); Terranova Owns (CNQ); Terranova Owns (LTD); Terranova Owns (C); Terranova Owns (PEP); Terranova Owns (CPX); Terranova Owns (ARUN); Terranova Owns (MS); Terranova Owns (RSH); Terranova is short Gold; Terranova owns (POT); Terranova owns (CRM); Terranova owns (FCX); Brown owns (AAPL); Brown owns (BAC); Brown owns (C); Brown owns (GLD); Brown owns (GDXJ); Brown owns (GOOG); Brown owns (JPM); Brown owns (MSFT); Brown owns (QCOM); Brown owns (WFC

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (MCP)
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Accounts Managed By Kanundrum Capital Are Long The Euro
Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Are Short (XLF)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
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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)

For Josh Brown
Brown owns (AAPL) for clients
Brown owns (AMZN) for clients
Brown owns (BAC) for clients
Brown owns (BP) for clients
Brown owns (C) for clients
Brown owns (CCJ) for clients
Brown owns (CSCO) for clients
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Brown owns (GLD) for clients
Brown owns (GDXJ) for clients
Brown owns (JNPR) for clients
Brown owns (JPM) for clients
Brown owns (MOS) for clients
Brown owns (MSFT) for clients
Brown owns (MS) for clients
Brown owns (NVDA) for clients
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Brown owns (UNH) for clients
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For Andrew Parmentier
Parmentier has no disclosures

For Joseph Lavorgna
Lavorgna has no disclosures

For Jon Najarian
Jon Najarian has no disclosures on (HAL)

For James West
Funds managed by James West own gold, gold equities, silver, silver equities

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