Meanwhile after hours Apple reported a jump in quarterly earnings on higher iPhone sales, easily topping analyst expectations and sending the company's shares higher in late trading.
The consumer electronics and computer company said it earned $1.33 a share on revenue of $8.16 billion in its fiscal second quarter. In the same period last year, Apple reported $1.16 a share on a topline of $7.512 billion.
Analysts who follow the company were calling for a profit of $1.09 a share on sales of $7.96 billion.
I wouldn’t go piling into Apple hoping they sandbag into next quarter, counsels Guy Adami. They often sandbag but if they’re not, you’ll be buying a stock that’s too high.
If you’re holding Apple I think it’s time to take gains, counsels Tim Seymour.
I agree entirely, adds Karen Finerman. This stock is up huge year to date.
AFTER HOURS ACTION: EBAY
Shares of eBay rose 5 percent to $15.51 in after market trade following the release of the company's quarterly results. Although the firm’s earnings and revenue dropped for the second quarter in a row, they beat analysts' expectations.
The company says revenue fell 8 percent to $2.02 billion. Analysts expected $1.94 billion.
I thought the quarter was very impressive, says Guy Adami. But I can’t get that excited about this stock.
It’s not the cream of the crop, echoes Pete Najarian.
If you’re looking for a trade I’d look at MercadoLibre, the Ebay of Latin America, counsels Tim Seymour. I think it’s a growth story.
ANALYZE THIS: MICROSOFT KEEP TECH MOJO GOING
Microsoft , the world's largest software maker, reports fiscal third-quarter earnings Thursday after the closing bell.
Considering just last week, two research groups reported worldwide PC sales fell around 7 percent in the quarter, what should you expect?
Analysts polled by Thomson Reuters expect Microsoft to earn 39 cents per share on $14.1 billion in sales for the recently ended quarter. Uncharacteristically, Microsoft didn't offer guidance, citing economic uncertainty.
UBS Software analyst Heather Bellini tells Fast Money that she expects Microsoft will report in line with estimates; and she rates Microsoft as a 'Buy.' However, "we also think they will show better cost controls in this quarter and that could get investors excited,” she says.
Meanwhile, Thomas Weisel analyst Tim Klasell has a different take. He wrote in an April 17 research note that small, inexpensive netbooks would again eat into Microsoft's profits in the quarter. Those mini-laptops run a limited version of XP, which Microsoft sells to PC makers for much less than Vista.
Brendan Barnicle of Pacific Crest Securities wrote in a note to investors that he doesn't think Microsoft will beat expectations in the quarter, but Collins Stewart analyst Sandeep Aggarwal seemed bullish on the software maker's potential to report better earnings than the Street predicted.
What’s the trade?
I’d get long, counsels Tim Seymour. There’s a lot of short interest in this name.
I also like Microsoft, adds Guy Adami.
This stock just kills me, adds Karen Finerman. But I’m still long.
What do you think? We want to know!
Want more trades? Turn the page!