On Wednesday Apple introduced a new gadget and by the end of trading investors were starting to suggest, like Apple's iPod, this new gadget could also be a game changer.
From today forward the ‘latest creation’ will be know as the iPad, a tablet-style computer that resembles a large iPhone and will sell between $499 and $829, less than many expected.
The iPad can run movies, games and a gamut of applications and it will allow users to access a digital bookstore called iBooks.
"It's so much more intimate than a laptop and so much more capable than a smart phone," CEO Steve Jobs said Wednesday.
The device will be available in 60 days, with the 3G versions available a month later.
Enthusiasm drove not only Apple shares higher but the entire Nasdaq.
That may be beacuse investors agree with Pip Coburn of Coburn Ventures who sees the new device as a game changer.
Because Apple products are stylish, must-have accessories, “the iPad will accelerate the advance of devices that didn't exist much like they accelerated the smartphone,” Coburn tells Fast Money.
In fact Coburn suggests the iPad will spark a whole new era in technology. "Around the globe people gush over Apple products," he adds. "I think people will tote around their iPad like its the holy grail."
What’s the trade?
I’ve been waiting for a device that was like a Kindle but a little more, says Pete Najarian. And this could be it. As a result, I think the iPad could harm Amazon .
This new release is another example of Apple’s drive to connect directly to customers, adds Gary Kaminksy. Long-term it will likely dislocate search engines just like iTunes dislocated the need for record stores. I think it’s negative for Google , Yahoo! and Microsoft’s Bing. It will take away the need for search to drive product sales.
However, I’d be careful of shorting Google, Kaminksy adds. It’s a name that closet indexers love but I just don’t see upside.
Considering the video game aspect of the new iPad, Electronic Arts may be a takeover target for Apple, speculates Guy Adami. Play it on a flier, it’s valuations are attractive.
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Trader disclosure: On January 27th, 2010, 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), (C), (GS), (INTC), (MSFT), (NUE), (BTU), (GS); Najarian Owns (AAPL) Call Spread; Najarian Owns (CTXS) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC) Leap, (BAC); Finerman Owns (BAC) Prefered, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT), (MSFT); Finerman's Firm And Finerman Own (WFC) Preferred; Seymour Owns (AAPL), (BAC), (INTC): Finerman's Firm And Finerman Own (IBB), (RIG)
Finerman's Firm Owns SPX Puts
For Tim Seymour:
Seygem Asset Management Owns (FCX)
Seygem Asset Management Owns (TSO)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owns (X)
Seygem Asset Management Owns (PBR)
For Pip Coburn
Pip Coburn Invests In Buckeye Delta Fund
Buckeye Delta Fund Owns (AAPL), (ADBE), (ANSS), (RIMM), Arm Holdings plc, (GOOG)
Buckeye Delta Fund Is Short (NOK), (PALM), (MOT)
For Paul Miller
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (FITB)
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