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Halftime: Citigroup Analyst’s About Face on Google

One of the biggest Google bulls stunned the “Fast Money” traders Thursday when he changed his tune about the search engine.

“There’s a lot of risk here,” Citigroup Analyst Mark Mahaney said. “I don’t think it’s worth buying Google shares anymore.”

That's about about face from the comments he made on "Fast Money" last year, when he told the traders Google was his top tech pick.

Now Mahaney believes there are reasons to be cautious and hold the stock, and the biggest factor is Facebook.

“The social search is a major change,” he said. “There’s a real possibility that we could have a paradigm shift in how all of us search on the Internet in the next three years, and if that happens it is very negative for Google.”

*To view Mahaney's comments, go about four and a half minutes into the video.

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Oil has been heading down the last three months, and independent oil trader Dan Dicker told the “Fast Money” traders he thinks that selling will continue.

The end of the QE2 should be dollar positive, he said. Plus, growth in the US, Europe and China has been going down. He also thinks the SPR’s release of oil will keep the speculators out.

“If you are long oil and you are looking at sovereign nations getting involved in the oil trade, and ready to slap down basically the speculators if the oil price gets too high … you are not going to want to be long oil for the long term or you are going to want to be extremely nimble about that oil trade,” he said.

He also thinks the correlation between the stock indices and oil is slowly being broken, but it will likely take a couple of months for it to completely disconnect.

“It’s definitely good for the stock market in the end,” he said. ”It’s definitely good for the commodity markets in the end. It’s definitely good for everybody who’s using oil and … the consumers at the pump.”

What’s the trade?

Fast trader Steve Cortes is playing it long SUPERVALU because he thinks lower prices at the pump will benefit grocery stores. He likes SUPERVALU best for its dividend yield.

Trader Jon Najarian is bullish drillers, and has Patterson-UTI Energy and Diamond Offshore Drilling on his radar.

“The demand for drillers in particular is going to do nothing but accelerate here,” he said.


*To see Dan Dicker's comments, go about two and a half minutes into the video.


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Trader disclosure: On June 30, 2011, the 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 (MSFT); Adami owns (NUE); Adami owns (BTU); Adami owns (INTC); Cortes owns (SVU); Cortes owns (SO)
Cortes owns treasuries; Cortes is short crude; Cortes is short Silver; Cortes is short (BIDU); Cortes is short Corn; Jon Najarian owns (AAPL) call spreads; Jon Najarian owns (AKS) call spreads; Jon Najarian owns (MT) call spreads; Jon Najarian owns (AXP) call spreads; Jon Najarian owns (BIDU) call spreads; Jon Najarian owns (HOC) call spreads; Jon Najarian owns (NSC) call spreads; Jon Najarian owns (PTEN) call spreads; Jon Najarian owns (UA) call spreads; Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (HOV); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Daniel Dicker owns (XOM); Daniel Dicker owns (RIG); Daniel Dicker owns (WFT)

For Steve Grasso
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (ABX)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (MU)
Stuart Frankel & Co and its partners own (MSFT)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (RDC)
Stuart Frankel & Co and its partners own (QQQQ)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)

For Mark Mahaney
Citigroup Global Markets Inc. and/or its affiliates has a significant financial interest in relation to eBay Inc, Amazon.com Inc, Google Inc.

Rich Ilczyszyn
** No disclosures

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