iPhone Killer?

Tech investors are keeping a close eye on Motorola , as the company reports third quarter earnings on Thursday. And as much as they want to hear about profits, they want to hear more about the new Droid smartphone and whether it may be the rival that gives Apple and its iPhone a run for the money.

Launched on Wednesday, investors are starting to bet that the Droid contributes to a turnaround for Motorola, which hasn’t had a hit since the wildly popular Razr phone in 2005.

That’s because this new smartphone was designed by both manufacturer Motorola and carrier Verizon to specifically addresses the frustrations users have with the rival iPhone. (We’re talking things like capacity constraints, long wait times for new aps and dropped calls.)

And so far the reviews are pretty impressive. The Washington Post says it’s “sexy” while CNET calls it a " a smartphone that holds a lot of surprises."

If you're into tech specs, CNET writes, "the biggest (suspires) is the positively gorgeous WVGA display. At 3.7 inches it surpasses even the iPhone and is firmly in the bounds of what we consider to be an acceptable size for a touch-screen display. Color support is generous (16 million hues) and the resolutions (440x854 pixels) is some of the richest we've seen. We aren't kidding when we say that this display is bright and brilliant with vibrant colors and sharp graphics. It also lends itself well to the welcome Android 2.0 interface updates."

The new Droid goes on sale Friday November 6th and it will cost $200.

What's the trade?

"I bought Nokia," counsels Tim Seymour. "A rising tide could lift all boats and if that's going to happen - ride the biggest boat."

"I just can't help but wonder if the pie will continue to grow or if we're looking at more rivals entering a space only to fight over a pie that's not getting any bigger," muses Karen Finerman.

And on the Halftime Report, Pete Najarian suggested putting Motorola on your radar. “I like the direction they’ve taken with the Droid. Maybe this is the gadget that can get it to the next level.”

For more insights CNBC’s Jim Goldman spoke with Motorola Co-CEO Sanjay K. Jha. Check out the interview. Watch the video now!

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Trader disclosure: On October 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (BX), (EEM), (INTC), (MSFT), (FXI); Najarian Owns (BX) Call Spread; Najarian Owns (EXPE) Calls

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