Technology stocks may dominate Friday’s trade after both Oracle and RIM beat the Street after the close. What must you know?
AFTER HOURS ACTION: ORACLE
Shares of Oracle popped 4% in extended trade Thursday after the company reported quarterly profit above Wall Street expectations with the traders noting an unexpected increase in sales of its computer programs.
The software giant said it earned 39 cents a share excluding one-time items in its fiscal second quarter, compared with 34 cents a share this time last year.
Sales for the most recent quarter reached $5.86 billion, up from $5.69 billion in the same period last year.
The results stoked hopes that technology spending is on the mend after it collapsed a year ago in the recession. Oracle, which reports earnings a month ahead of its peers, is seen as a bellwether for the industry because of its size.
What’s the Oracle trade?
Strategy Session with the Fast Money Traders
The stock is now trading at a 52-week high, says Guy Adami. But I think it breaks higher. Goldman has a $27 price target on it.
I like the direction Oracle is taking too, says Pete Najarian. Along with Goldman, FBR also has a $27 price target. And options action suggests to me big investors are betting tech goes higher, broadly.
I expect Oracle earnings will rally Microsoft on Friday, adds Tim Seymour.
Because Oracle is considered a bellwether, reminds Karen Finerman. I think these earnings could breathe life into the Nasdaq on Friday. That’s assuming we don’t get a big blow-up over night.
AFTER HOURS ACTION: RESEARCH IN MOTION
Shares of Research in Motion jumped more than 12 percent in extended trade Thursday after the company said it earned $1.10 a share excluding one-time items in its fiscal third quarter, compared with 83 cents a share this time last year.
Sales for the most recent quarter reached $3.92 billion, rising from $2.78 billion in the same period last year.
What’s the RIM trade?
I think RIM is executing on all ends, says Pete Najarian. I’m very impressed.
Personally, I’d start to think about shorting RIM, muses Guy Adami. The stock is again at levels where it started to break down last time.
I expect to see an upgrade parade from analysts on Friday on the heels of this earnings report, adds CNBC’s Jim Goldman. For the life of me I can’t imagine shorting this stock.
But at these levels RIMM will likely run out of momentum, counters Jon Najarian (Pete’s brother), so I think Guy is right. You might want to short the stock as a trade
Taking a broad look at the sector, when RIM has good earnings, Apple often has good earnings, reminds Karen Finerman.
I also think it means good things for the other guys, echoes Tim Seymour.
> For complete coverage of RIM earnings click here
AFTER HOURS ACTION: NIKE
After hours shares of Nike popped 3% after the company reported a profit that exceeded analysts' expectations.
Specifically, the athletic apparel company said it earned 76 cents a share in its fiscal second quarter, on revenue of $4.4 billion
The company, a major sponsor of controversial golfer Tiger Woods, has said it will stand by the golfer as he takes time off from the sport to work on his marriage.
What’s the trade?
Nike is really growing in Asia and the Middle East, reminds Tim Seymour. That’s much more telling than anything related to Tiger Woods.
I think this stock is ok, says Guy Adami.
> For complete coverage of Nike earnings click here
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Trader disclosure: On December 17th, 2009, 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), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (AAPL), (BAC), (FXI), (INTC), (TSO), (GE), (EEM); Finerman's Firm Owns (MSFT), (NOK), (AAPL); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG); Najarian Owns (ORCL) Jan. Calls, Is Short (ORCL) Dec. Calls; Najarian Owns (AAPL) Calls; Najarian Owns (FCX) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (MS); Najarian Owns (RIMM) Jan. Calls, Is Short (RIMM) Dec. Calls; Najarian Owns (UUP) Call Spread
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