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5 plays on Silicon Valley tech giants

Trading tech: 5 hot plays

Tesla shares soared more than 6 percent on Monday after it said Model S sales rose 55 percent from a year ago, but some Fast Money traders still aren't sold on the stock.

"The stock has been a sell on rallies" and that could be the trade going into the company's upcoming product announcement, said trader Dan Nathan. "I don't think you go run in and buy it on a 7 percent up day," but if it can make a bottom somewhere between $180 and $190 than you may want to get in.

Trader Tim Seymour said he wouldn't chase the stock just because it bounced off two numbers. "Let's wait for a real number out of these guys that actually hits the consensus," Seymoure said.

A row of new Tesla superchargers outside the company's factory in Fremont, Calif.
Getty Images

Microsoft saw solid gain after Wells Fargo upgraded the stock to "outperform" from "market perform," as it sees negative headwinds, such as currency and potential earnings estimate reductions, adequately priced into the share price.

Seymour said Monday's upgrade was not enough to convince him to jump in. "I don't need to jump in on this upgrade, nothings changed yet," he said, adding that the more headwinds may be on the way.

Seymour said he's more upbeat about chipmaker Qualcomm, which edged lower Monday on reports that Samsung had ditched its chips. "As disappointing as the stock has traded since that buyback announcement, it's an anchor on the stock," Seymour said. "I think the news is in the price and until we hear that they're out, I think they're in."

Turning Qualcomm's competitor Intel, Fast Money trader Pete Najarian said there's a upside potential for the stock as he believes much of the company's headwinds are already priced into its price.

Real estate website operator Zillow tumbled on news that Barclays had downgraded the stock to "equal weight" from "overweight", citing short-term traffic growth difficulties.

"This is not the sort of commentary you want to hear after you take out a big competitor," said Nathan, speaking of the company's recent acquisition of Trulia. "I actually think there's room to the downside here. This thing reminds me a bit of Tesla..."


Tim Seymour is long T, BAC, C, DIS, F, GE, GM, GOOGL, INTC,SUNE, Tim's firm is long BABA, AVP, BIDU, MCD, NKE, NOK, SBUX, YNDX.

Dan Nathan is long BBRY June call spread, INTC April Put spread, IWM April put fly, JPM April 60/55 put spread, M May call spread, QQQ May 108/ 98 put spread, SHAK, TWTR, XHB April 35/32 put spread, XLP May Put Spread.

Pete Najarian is long AMAT, AAPL, BABA, BAC, BMY, BP, CSX, DISCA, FOXA, GE, KKR, KO, LLY, MRK, PEP, PFE, SAP, he is long calls BK, CNX, COP, CSX, EBAY, EXXI, F, FCX, FL, GE, GM, GT, HOG, JD, KO, LYB, NEE, PBR, PEP, PFE, TEVA, TWTR, UA, UAL, UFS, ZIOP, today he bought HOG calls.