Even with shares surging as much as $30 or 6% in extended trade, Fast trader Joe Terranova thinks Apple remains a screaming 'Buy.'
He calls the trade a lay-up.
”The most important thing for a trader is the acceleration of this stock,” he says. “Since June 20th it’s rallied from $310. The ascent is aggressive and violent – buy more Apple don’t sell.”
Trader Stephen Weiss is also bullish. “I bought some calls ,” he says. “They’ve got an upgrade cycle and that should drive earnings even further.”
Beyond that Weiss likes that Apple trades at only slightly more than the market multiple but generates growth that exceeds the market. "Because of that it's (still) a reasonably priced stock worth owning," he says.
Trader Dan Nathan thinks both Terranova and Weiss are both a little too euphoric.
“Wait for the stock to come back to you,” he says. This is not a lay-up. Stocks don’t go from $300 to $400 to $500. I don't buy runaway break-outs! It wouldn't surprise me to see investors come in on Wednesday and take profits.“
OptionMonster Jon Najarian is also slightly more cautious. "Investors will reload - but it will be at a lower price," he says. Najarian thinks before the launch of the new iPhone in September investors will get a chance to get back in around $380.
Terranova's enthusiasm can't be contained. "Understand the Apple ecosystem," he counters. "They are targeting the enterprise space. They are now the 3rd largest US computer maker. They're putting their products in the hands of top executives and Corporate America is migrating to Apple."
"Here's what I'd do," he tells the desk. "$364.90 - that was the Feb 11th high - that was resistance. I don't think Apple closes below that level." In other words Terranova would go long using that level as a stop.
Here are some of the numbers that Terranova and other Apple bulls find exciting.
Revenue shot up 82 percent to $28.57 billion from $15.7 billion in the year-earlier period. Analysts had expected Apple to report earnings of $5.85 a share on revenue of $24.9 billion.
Sales of both iPads and iPhones were strong during the quarter: The company said it sold 9.25 million iPads during the quarter, nearly triple the amount it sold a year earlier. IPhone sales more than doubled to 20.34 million.
Cash flow more than doubled to $11.1 billion, the company said.
If you're looking for a downstream play, Stephen Weiss suggests looking at chip maker Qualcomm.
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Trader disclosure: On July 19th 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Nathan owns (AMZN) puts; Nathan owns (CSCO) calls; Nathan owns (IBM) puts; Nathan owns (INTC) put flys; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm owns (BAC) leaps and Finerman Owns (BAC); Finerman's Firm owns (JPM) leaps and Finerman Owns (JPM); Finerman’s Firm and Finerman own (MSFT); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Terranova owns (XOM); Terranova owns (HAS); Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Weiss owns (AAPL); Weiss owns (KO); Weiss owns (JPM); Weiss owns (QCOM); Weiss owns (MSFT); Weiss owns (EMC); Weiss owns (UUP); Weiss owns (TBT); Weiss owns (UGL); Weiss owns (AGU); Weiss owns (HBAN); Weiss owns (KEY); Weiss owns (CMA); Kinahan owns (C)
For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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CNBC.com with wires.