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Amazon Swings ‘A Knee-Jerk Reaction’: Kessler

Swings in the price of Amazon stock after it reported quarterly earnings may have been unwarranted, Aaron Kessler of Raymond James said on CNBC.

On "Fast Money," he said that an initial look at the numbers didn't tell the whole story.

"I think it was a knee-jerk reaction to the negative GAAP earnings, but when you look actually look at the numbers, the numbers are basically a little better than expected," he said.

(Read More: 'A Few Cracks to Worry About' in Apple: Gillis)

Long-term, Kessler sounded positive on the online retailer – with a caveat.

"We like the fundamentals, we like the long-term prospects for Amazon, but you're still trading at roughly 60 times the non-GAAP earnings number on 2013," he said. "And versus kind of a 30 percent long-term growth rate. That's still a pretty healthy multiple in our view."

Trader disclosure: On Oct. 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL PUT SPREADS & PUTS; Karen Finerman is long BAC CALL SPREADS; Karen Finerman is long JPM CALL SPREADS; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long TKR; Karen Finerman is long M; Karen Finerman is long RLGY; Karen Finerman is short MDY; Karen Finerman is short IWM; Karen Finerman is short SPY; Brian Kelly is long EWT; Brian Kelly is long SMH; Brian Kelly is short XLF; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Steve Grasso is long ACI; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long BTU; Steve Grasso is long CLF; Steve Grasso is long F; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long WYNN;

For Aaron Kessler
Raymond James expects to receive or intends to seek compensation for investment banking services from the subject companies in the next three months: AMZN, GOOG, SCOR.


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