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After Hours Action: RIM, Oracle

Two of the most widely followed tech titans reported earnings after the bell on Thursday. How should you trade RIM and Oracle in the wakes of these results?

AFTER HOURS ACTION: RIM

Shares of Research in Motion tanked in extended trade with the latest results triggering chatter that the company is losing out to its rivals.

Investors were particularly spooked by sales, which came in below Street estimates.

The BlackBerry maker said it expects to generate sales of between $5.2 billion and $5.6 billion in the current quarter, and earnings of between $1.47 and $1.55 a share. Analysts' consensus stood at $5.6 billion and earnings of $1.65 a share.

It’s worth noting that sales are still growing at a rapid clip; last year at this time they were $4.08 billion.

And earnings are also stronger year over year, currently $1.78 a share as compared to $1.27 a share during the same period a year earlier.

However the missed estimates are being interpreted as a sign that competitors such as Apple are grabbing a bigger piece of the pie.

What’s the trade?

Guy Adami says a lot of investors will probably rush in a buy RIM thinking it’s a value on the sell-off. But, he adds, “I wouldn’t touch it on Friday. I’d let it shake out.”

Steve Cortes is a contrarian and thinks the Street is largely so negative on the stock that he might be one of those investors who steps in on Friday. “I might step in and try and buy especially if it trades down to $55. I do find the valuation compelling,” he says.

Joe Terranova doesn’t see any trade. “I wouldn’t buy it but I wouldn’t go short either.”

Tim Seymour agrees with Joe Terranova. However Seymour also thinks RIM may pick up some momentum with the launch of their tablet.

Brian Kelly takes a different tack. He says, if investors are bullish on RIM on expectations of strong growth in emerging markets, then he thinks a better way to play it is long Vodafone.


For more coverage of RIM earnings click here

AFTER HOURS ACTION: ORACLE

Shares of Oracle traded somewhat flat in extended trade despite relatively strong earnings.

The business software giant run by Silicon Valley billionaire Larry Ellison said it earned an adjusted profit of 54 cents a share in its fiscal third quarter. That compares with earnings of 38 cents a share a year earlier.

Non-GAAP sales at Oracle jumped to $8.81 billion in the most recent quarter. Sales came in at $6.469 billion a year ago.

The company was seen turning in a profit of 50 cents a share, with sales of $8.669 billion, according to a consensus estimate compiled by Thomson Reuters.

Also, Oracle boosted its quarterly dividend to 6 cents a share, up from 5 cents a share. The increase of 20 percent matched a recent increase by business software rival SAP.

New software license sales, which generate high-margin, long-term maintenance contracts and are a good gauge of the company's future profits, rose 29 percent to $2.2 billion. That figure was above Oracle's own forecast.

What’s the trade?

Joe Terranova looks at Oracle is an alternative to H-P and says “it’s clearly a better alternative.” He thinks it should be a $38 or $39 stock.

Guy Adami says, “the low hanging fruit is over but I do believe it has further upside as well.”

Tim Seymour is more cautious. “It’s not cheap here and this stock is a name that comes with huge expectations,” he says.


For more coverage of Oracle earnings click here



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Trader disclosure: On March 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is Long (AGU); Guy Adami is Long (MSFT); Guy Adami is Long (C); Guy Adami is Long (INTC); Guy Adami is Long (NUE); Guy Adami is Long (GS); Guy Adami is Long (BTU); Steve Cortes is Long (TM)p; Steve Cortes is Long (EXC); Steve Cortes is Long (GS); Steve Cortes is Long (SO); Steve Cortes is Short (F); Steve Cortes is Short (BAC); Steve Cortes is Short (DBA); Steve Cortes is Short Natural Gas; Steve Cortes is Short Silver; Steve Cortes is Short Wheat; Steve Cortes is Short Corn; Steve Cortes is Short Beans; Steve Cortes is Short Japanese Yen; Joe Terranova is Long (C); Joe Terranova is Long (VRTS); Joe Terranova is Long (GS); Joe Terranova is Long (JPM); Joe Terranova is Long (UPL); Joe Terranova is Long (MS); Joe Terranova is Long (PBR); Joe Terranova is Long (BAX); Joe Terranova is Long (TEVA); Joe Terranova is Long (IBM); Joe Terranova is Long (BTU); Joe Terranova is Long (POT); Joe Terranova is Long (XOM); Joe Terranova is Long (DIS); Joe Terranova is Long (RSX); Joe Terranova is Long (CNQ); Joe Terranova is Long (CNX) Puts; Tim Seymour is Long (AGU); Tim Seymour is Long (BAC); Tim Seymour's Firm is Long (POT)

For Brian Kelly
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CNBC.com with wires.

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