Amgen's stock is up 18 percent in the last 3 months, and the company reported earnings that broadly beat expectations. Meanwhile, Amazon reported a beat on earnings, but was weighed by a miss on revenue and weak guidance.
Trader Pete Najarian said he likes Amgen because the biotech company trades at a relatively low stock price of $164 with a great yield.
Tim Seymour said the political environment is favorable for Amgen, with corporate tax reform expected to come from the Trump administration.
On Amazon, trader Karen Finerman said she's skeptical about the valuation of the logistics part of the company. She added that the stock would be attractive only if the company's web services segment or cloud-computing unit sees faster growth— and the segment's profit margins do not start to shrink.
Najarian said he sees the stock's pullback as a potential buying opportunity.
Karen Finerman is long AAL, BAC, BAC short calls, C,DAL, FB, FL, GLMP,, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, M, MA, SEDG, SPY puts, TACO, UAL, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M,MOH, PLCE, SPY puts, WIFI, her firm is short IWM, MDY. Karen Finerman is on the board of GrafTech International.
Pete Own Calls: AMJ, AKS, BVN, BZH, C, CCC, CHK, CLF,CRM, ETP, FCX, FB, GILD,HRL,IBN, INTC, JBLU, HUM, KORS, KMB,, MRVL, MTW, NEM, PAA, RIO, TGT, UNP, WFT,WLL WMGI, GLD,SLV, UUP, POT, ZIOP. Long Stock: AAPL, BAC, BLL, DIS, DISCA,GE,GILD, GM,HAIN, HD, HUM, INTC, JWN, KMI, KMI.A, KO,KORS, LUX, MOS, MRK, MRVL,PEP, PFE, XLNX. Long Puts: PJ
Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of CowenGroup, Inc. David Seaburg and Cowen have a financial interest in EDIT. Diamond Offshore: an employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore
Tim Seymour is longABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB,FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL,SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT;
Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE,PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG,HYG, IWM