In the after hours the traders sifted through Microsoft and Amazon earnings, looking for insights into the tech trade after the sector led stocks lower, Thursday.
After the bell, Microsoft impressed the Street with a report that showed earnings jumped 60 percent, helped by a rebound in personal computer sales.
Specifically, net income for the fiscal second quarter that ended Dec. 31 rose to $6.7 billion, or 74 cents per share. Revenue increased 13 percent to $19 billion.
Microsoft outstripped analysts' forecasts by 15 cents a share. Wall Street expected Microsoft to earn 59 cents a share on sales of $17.9 billion, according to a poll from Thomson Reuters.
In the after hours shares popped by about 2%.
I love the strength in the after-market, says Pete Najarian, but be careful. It wouldn’t surprise me to see selling on Friday morning.
I would add to my position on strength, counsels Joe Terranova. If Microsoft breaks above $30.50 then I’d be a buyer.
It's worthing noting in their conference call the Microsoft CFO said the company has not seen a return in enterprise spending growth, adds host Melissa Lee.
> For complete coverage of Microsoft earnings click here
Meanwhile Amazon put up some pretty impressive results too. The Seattle-based online retailer reported fourth quarter earnings of 85 cents a share, topping estimates. Amazon earned 52 cents a share during the same period last year.
Also, the company gave a rosy sales outlook, going forward. “Millions of people now own Kindles," said Amazon CEO Jeff Bezos. "And Kindle owners read, a lot... we sell 6 Kindle books for every 10 physical books."
The stock had sold-off coming into the earnings, but the outlook was so impressive it sent shares higher in the after hours, explains Pete Najarian.
I’d be long Amazon versus $110, says Joe Terranova.
> For complete coverage of Amazon earnings click here
Considering weak outlooks from Motorola and Qualcomm dragged down technology and the Nasdaq during regular trade, how should you be positioned, now?
I think the tech trade is still very difficult, says Tim Seymour. I certainly wouldn’t chase Amazon.
The name in tech that I’m watching is IBM, counsels Guy Adami. If you think the tape is going higher $124 is a nice entry point.
If I owned Microsoft stock I’d be a buyer of the 30-puts, says Pete Najarian.
I’m bullish VMWare on Microsoft earnings, says Brian Kelly. It suggests to me there is a server upgrade going on – but it’s not on the hardware side.
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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); Najarian Owns (AAPL) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (QCOM) Call Spread; Najarian Owns (XLF) Calls; Terranova Owns (BAC), (JPM), (GS), (XOM), (HAL), (EMC), (AAPL), (DELL), (MSFT), (QCOM); Terranova Owns (XLF) Feb. Calls
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
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Virtus Investment Partners Owns More Than 1% Of (SKT)
For Brian Kelly
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns April Gold Futures
Kanundrum Capital Is Short (EWY)
Kanundrum Capital Is Long U.S. Dollars vs. Short Singapore Dollar
Kanundrum Capital Is Long U.S. Dollars vs. Short Yen
Kanundrum Capital Is Long U.S. Dollars vs. Short Euro
Kanundrum Capital Is Long British Pounds vs. Short U.S. Dollars
Kelly Owns (FXE) Puts
Kelly Owns (ELX) Calls
Kelly Owns (QLGC) Calls
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