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Fast Traders Play the Apple Eco-System

Wednesday, 20 Jul 2011 | 1:52 PM ET

It seems tech bulls just can't contain their excitement about the latest earnigns from Apple.

Unless you live under a rock, by now you know that Apple , again, wowed the crowds with results that blew past even the Street's most optimistic expectations.

Sales of both iPads and iPhones were nothing short of amazing. The company sold 9.25 million iPads during the quarter, nearly triple the amount it sold a year earlier. IPhone sales more than doubled to 20.34 million.

How should you profit from Apple’s enormous strength?

Although many traders are looking at downstream plays (and we’ll get to that in a minute) the desk largely agrees that the best way to play Apple -- is long Apple.

However, if you want other ideas Brian Kelly suggests long Qualcomm , whose chips are in Apple prodcts as well as chip giant Intel , which is making inroads into the mobile market broadly. And, he also likes VMWare and EMC as bets that tablets such as the iPad, generate a greater demand for virtual storage.

Zach Karabell thinks Broadcom is interesting, largely because it’s underperformed its peers. “It’s a higher beta play,” he says.

Jon Najarian suggests American Tower, Crown Castle or TESSCO, plays on the back haul of data.

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LOOK-AHEAD TO EBAY EARNINGS

The Fast traders will be among the legions of investors watching eBay results after the bell; looking to get a sense of how much the macro headwinds, like housing, are hurting consumers.

What must you know before eBay reports? Find out from Citi analyst Mark Mahaney. Watch the video now!

WOTS Now: Apple
The Fast Money traders weigh in on Apple's earnings and how to play the tech giant's ecosystem.


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Trader disclosure: On July 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Cortes owns (GS); Cortes owns (MS); Cortes owns (EXC); Cortes owns (SVU); Cortes owns (PM); Cortes owns (NWS); Cortes is short Silver; Cortes is short (EUR); Cortes is short Copper; Cortes is short (LULU); Cortes is short (LVS); Cortes is short (IYT);
Karabell owns (AAPL); Karabell owns (GOOG); Karabell owns (GS)

For Zach Karabell
Rivertwice Capital & Karabell own (QCOM)
Rivertwice Capital & Karabell own (BRCM)
Rivertwice Capital is short (XLF)
Rivertwice Capital is short (SPY)
Rivertwice Capital is short (QQQ)

For Dennis Gartman
Funds Managed By Dennis Gartman and Dennis Gartman own (LNG)
Funds Managed By Dennis Gartman and Dennis Gartman own (CF)
Funds Managed By Dennis Gartman and Dennis Gartman are short the S&P
Funds Managed By Dennis Gartman and Dennis Gartman own the Australian Dollar
Funds Managed By Dennis Gartman and Dennis Gartman are short the British Pound
Funds Managed By Dennis Gartman are short (EUR)
Dennis Gartman owns Brent
Dennis Gartman owns (WTI)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Own (TOL) calls
Accounts Managed By Brian Kelly Capital Own (MCP) calls
Accounts Managed By Brian Kelly Capital Own (INTC)
Accounts Managed By Brian Kelly Capital Own (QCOM)
Accounts Managed By Brian Kelly Capital Own (GDXJ)
Accounts Managed By Brian Kelly Capital Own (SLV)

For Mark Mahaney
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of eBay Inc, Yahoo! Inc, Netflix Inc, WebMD Corp. This position reflects information available as of the prior business day.


CNBC.com with wires.

  Price   Change %Change
AMT
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BRCM
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CCI
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EBAY
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EMC
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INTC
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QCOM
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TESS
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VMW
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AAPL
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