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What’s Beyond the Facebook Bounce: Pro

Wednesday, 24 Oct 2012 | 1:07 PM ET

Facebook shares stand to gain as Apple and Google stocks appear to stall, Stifel Nicolaus Managing Director Jordan Rohan said Wednesday on CNBC.

On "Fast Money," Rohan said that he was surprised by the dramatic reversal in Facebook's quarterly earnings, particularly in the mobile advertising arena.

(Read More: S&P to 1,550, Then 'Off the Cliff': Strategist)

"What's exciting about Facebook right now is we actually now have turned the corner," he said. "Six months ago, mobile was the enemy. Mobile was the force that would reduce monetization for the overall Facebook platform."

How to Look Beyond the Facebook Bounce: Pro
Tech investors will seek new stocks as Apple, Google lose their luster, says Stifel Nicolaus Managing Director Jordan Rohan.

Facebook's focus on becoming more shareholder-friendly and on increasing revenues, especially on mobile, made all the difference, Rohan said.

"Now mobile, the greatest trend I've seen since the switch from narrowband to broadband is actually a friend of Facebook," he said.

The bounce in Facebook shares after quarterly earnings didn't make a believer of RoseCliff Capital's Mike Murphy.

"This looked to me like a short-covering rally," he said.

Rohan countered by citing Facebook stock's relative performance.

"With Apple shares now not going up every day and Google shares down $100 from their peak, tech investors are going to look for somewhere to put that money, somewhere where there's earnings momentum," he said. "So while there may be some short-term pressure on the shares when insiders sell, VCs sell in mid-November, mid-December. I looked at this and said six months, a year from now, these shares are probably higher as long as this company beats their numbers."

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Oct. 24, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long BAC; Steve Weiss is long QCOM; Steve Weiss is long C; Mike Murphy is long AAPL PUTS; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is short FB PUTS; Joe Terranova is long VRTS; Joe Terranova is long SBUX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long GS; Joe Terranova is long GLW;

For Jordan Rohan
Stifel, Nicolaus & Company, Inc. makes a market in the securities of Facebook, Inc.. Stifel, Nicolaus & Company, Inc. or an affiliate managed or co-managed a public offering of securities for Facebook, Inc. in the past 12 months. Facebook, Inc. is provided with investment banking services by Stifel, Nicolaus & Company, Inc. or was provided with investment banking services by Stifel Nicolaus or an affiliate within the past 12 months. Facebook, Inc. is a client of Stifel, Nicolaus & Company, Inc. or an affiliate or was a client of Stifel Nicolaus or an affiliate within the past 12 months. Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from Facebook, Inc. in the next 3 months. Stifel, Nicolaus & Company, Inc or an affiliate has received compensation for investment banking services from Facebook, Inc. in the past 12 months;

For Dennis Gartman
Dennis Gartman is short US 10Y Treasuries;
Dennis Gartman is long GOLD;

For Todd Edgar
Todd Edgar is SHORT NEW ZEALAND DOLLAR;
Todd Edgar is SWEDISH KRONER.

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