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How to trade Twitter & Chipotle after earnings miss

Battleground stocks Chipotle and Twitter are under pressure today after posting disappointing quarterly earnings.

The social-media company forecasted a weak second quarter, while the restaurant chain reported its first ever quarterly loss.

So, what should investors do? Have the stocks fallen enough to make them attractive buys or are they headed even lower? The "Halftime Report" experts weighed in.

Twitter

"Twitter has shown absolutely no growth" -Pete Najarian

While the desk agrees that now is not the time to buy Twitter, each trader had a different take on where it goes from here.

Some investors might see Twitter as an attractive short at these levels since the stock has fallen 35% year-to-date. But Jon Najarian argues that since Twitter is a potential takeover target, it's not a good time to bet against the social-media company.

On the positive side, he believes the NFL partnership -- if properly executed -- could give the company and stock a needed boost.

Pete Najarian thinks the onus has fallen on Jack Dorsey, and that he has under performed as CEO. "When Jack came in we thought you have to give him a quarter, maybe two...Jack has to produce. When you look at the monthly active users, we're virtually the same."

Najarian used to hold the stock in the Halftime Portfolio Competition because like his brother, he believed it could be a takeover target. But Najarian ended up trading out of his position since the company "has not been able to make a turn."

Jim Lebenthal pinpoints user experience as the reason behind his bearish stance.

"I am not an excellent Tweeter, and I've tried to get engaged with this system many, many times. I get engaged for a day or two, and then I just lose interest," he said on the "Halftime Report".

"The user experience for me has not been very compelling, and I think that I am in more of the majority that grows everyday," Lebenthal further argued.

Steve Weiss summed up his stance saying "I'll give you the story in four characters: sell."

Chipotle

Restaurant chain Chipotle is still felling the effects of its E. Coli outbreak at the end of last year.

Pete Najarian notes that traffic still hasn't picked up. "They [Chipotle] haven't really gotten the return of the traffic, and that's the problem," he argued.

Part of Chipotle's strategy to regain customers has been to issue coupons for burritos. But Steve Weiss pointed out that this is not beneficial in the long-run since these people are often not repeat customers. He also thinks that at 82x earnings it's forward P/E is much too high.

Jim Lebenthal points to slow growth in new stores as a reason to stay out of the stock for now.

Trader disclosure: On April 27, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Jim Lebenthal: Long AAPL, BA, C, CSCO, DCO, DIS, EEQ, GAIA, GM, INTC, JCP, KMI, KMY, MPC, OA, ORBC, PFE, QCOM, QRVO, SPLS, TIF,TRN, TWX, WGO

Jon Najarian: Long BMY, CHS, DIS, NFLX, PEP, PFE,RAX, SPRT. Long calls AREX, BAX, COP, CRM, DHR, ECA, FIT, GDX, GRPN, LVS, MDLZ, MSFT, NBR, PDS, QCOM, XOM, YHOO, ZIOP

Pete Najarian: Long AAPL, BAC, BMY, CSCO, DIS,DISCA, GE, KMI, KMI.A, KO, MRK, PEP, PFE, SAVE, ZIOP. Long calls: AAL, ABX, AKS, AMJ, CL, COP, DATA, EGO, ENR, EWZ, F, HAIN, KBH, KMI, KO, LLY, MT, NLNK, SBUX, SLV, SPG, TCK, UAL, XOM. Long puts: FCX, MS, PBR, VLO

Steve Weiss: Long AAL, C, CVC, ENBL, EPD, PAA, SXL, TLLP. Long puts: SRPT