Apple-Target Deal Better for One Stock, Pros Say
On speculation that Apple and Target might be looking at a store-within-a-store agreement, the “Fast Money” pros unanimously said such a deal would be better for one company.
Apple is planning to open branded areas within Target stores in 25 areas, according to a report published by Apple Insider. Target already sells popular Apple products such as the iPad, iPhone and iPod Touch within its more than 1,750 locations.
Jon Najarian, OptionMonster.com cofounder, said there would be potential upside for both companies.
“If Target just basically sells the iPhone, it gets them exposure to places where they’re not going to build an Apple Store,” he said.
But he added that it wouldn’t be an Apple Store experience without the Genius Bar.
“That’s what really moves product, I think, because they can talk to an expert,” he said. “Bigger opportunity for Target.”
Traders Joe Terranova and Pete Najarian both agreed.
Apple shares rose 1 percent to close at $422.45. Target closed up at $48.95
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Trader disclosure: On Jan. 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns APC; Terranova owns OXY; Terranova owns XOM; Terranova owns VRTS; Terranova owns IBM; Terranova owns CSCO; Terranova owns AXP; Terranova owns SBUX; Terranova owns CSX; Terranova owns SWN; Terranova owns AXP; J. Najarian owns AAPL; J. Najarian owns AKS; J. Najarian owns BAC; J. Najarian owns PNC; J. Najarian owns GS; J. Najarian owns NFLX; J. Najarian owns MSFT; J. Najarian owns AA; P. Najarian is long AAPL; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long WFC calls; P. Najarian is long NFLX calls; P. Najarian is long MSFT ; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long INTC; Weiss is long EUO; Weiss is short FXA; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Weiss is long EUO; Weiss is short FXA
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