Buy Google Ahead of Thursday Earnings? Plus 3 Other Tech Plays
On Wednesday the Fast pros were taking a long hard look at the tech titans with Google scheduled to release earnings on Thursday?
Following you’ll find their thoughts on Google, as well as Apple, RIM and H-P.
According to BCG analyst and Fast Money friend Colin Gillis “we’d be buyers of Google in front of their earnings.”
He says the call is about the core business, "when you strip out all the noise we think they have a beautiful core business that we think it going to produce upside driven by the increased in costs per click.”
However, he concedes it’s a trading call.
“We’re not going to love Google forever. When we get into 2012 we’d revisit– but we’d be buyers here and now.”
Trader Josh Brown is also bullush but not ahead of earnings. “ I think Google can be owned. It’s probably among the best of the large cap Internet stocks.” However he adds, “I’d rather wait and see how the quarter shakes out and get involved after that. I never like to buy a day or two before earnings.”
Research in Motion
You might say these are dark days for Research in Motion – we mean that literally.
The company’s Blackberry has now experienced outages in the U.S. Canada, Europe, Asia, Latin America and Africa.
And it doesn’t help that activist investor Vic Alboini is agitating for some big changes – including the resignation co-CEO’s Mike Lazaridis & Jim Balsillie.
Sounds bleak. Of course, there’s a popular saying that suddenly rushes to mind. It’s always darkest before the dawn.
Should you buy?
”I understand it’s dirt cheap,” says Gillis, "but I still have a sell rating on the stock.” Gillis is concerned that with activist investors looking to shake up the business, management’s focus will shift from creating exciting new products to simply retaining their jobs.
Trader JJ Kinahan says “I couldn’t agree more. I think the stock could trade down to $20.”
Trader Stephen Weiss is on the other side. “I own RIM because people see only bad news but at 4 to 5 times earnings it’s a dirt cheap stock with millions of subs. If it trades down I’d buy more.”
Meanwhile Apple also landed on the trader radar as the Street digests reports out earlier in the week that the iPhone 4S broke sales records.
The company said it processed more than one million orders for the iPhone 4S in the first 24 hours it was on sale.
Colin Gillis is a cautious buyer of pullbacks. “You have to be worried north of $400,” he says. “Our price target is $450.”
Trader Steve Cortes is on the other side all together. “I think the optimism in this stock and in general is excessive. At $410 I’d look at shorting the stock,” he says.
If it looks like a bad idea and it smells like a bad idea – it’s probably a bad idea.
New H-P CEO Meg Whitman says she’s reconsidering her predecessor’s plan to spin-off Hewlett’s PC unit into a separate company.
Whitman says a definitive decision should come as soon as the end of the month.
What’s the trade?
Stephen Weiss says, “I’m willing to own Hewlett Packard stock and I do.”
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Trader disclosure: On Oct 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns (APA); Weiss owns (EUO); Weiss owns (CSX); Weiss owns (QCOM); Weiss owns (RIMM); Weiss owns (NIHD); Weiss owns (HPQ); Weiss owns (NS); Cortes is long CAG; Cortes is long SO; Cortes is long PEET; Cortes is long Treasury Bonds; Cortes is long WMT; Cortes is short AAPL; Brown owns (AAPL); Brown owns (JPM)
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