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Take Your Position: Amazon, Microsoft, Nokia

With three big tech earnings out Thursday, how should you be positioned?

Amazon

This stock has been the object of much speculation with shares of Amazon on a decline lately, after climbing over 150% in 2009 to $140. Bullish investors believe Amazon is well positioned as a sea change takes hold and more and more people shop online.

Meanwhile, Amazon's e-reader call the Kindle marked a milestone on Christmas Day; it sold more e-books than physical copies for the first time.

Considering Amazon is now trading at the same levels as 3 months ago, what’s the trade?

I still think Amazon could trade down to $106, says Guy Adami. But if it does, that’s an entry point.

I just don’t see how huge growth isn’t already priced in, says Karen Finerman. Despite the slide the stock remains very expensive.

Microsoft


The sentiment on Wall Street is that Microsoft will report better-than-expected earnings largely buoyed by sales of Windows 7. In addition, the company's online division is expected to benefit from Bing's increasing market share.

Considering shares are up 4% over the past 3 months, how much is priced in? What’s the trade?

I'm cautiously optimistic, says Karen Finerman. The valuations are attractive.

Microsoft is like JNJ, adds Pete Najarian, it's a giant. I think it's a safe play but also has limited upside.

Lately in in tech, if a company reports a good quarter the stock pops and then sells off, adds Guy Adami. I'd trade accordingly.

Symbol
Price
 
Change
%Change
MSFT
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Nokia

Neil Mawston of Strategy Analytics says Nokia continues to search for ways to improve its performance, which has fallen behind its rivals.

"Nokia is still chasing some of its major competitors who will continue to outperform the market with good portfolios of devices, including touch phones and smart phones. Nokia just needs to fill the gaps in its portfolio because it has a strong distribution network and power pricing."

With shares down modestly over a 3-month period, how should you trade?

If you want to be in wireless, I’d do it with the tower companies, counsels Gary Kaminksy.

Symbol
Price
 
Change
%Change
NOKIA
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Trader disclosure: On January 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU), (GS); Najarian Owns (AAPL) Call Spread; Najarian Owns (CTXS) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC) Leap, (BAC); Finerman Owns (BAC) Prefered, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT), (MSFT); Finerman's Firm And Finerman Own (WFC) Preferred; Seymour Owns (AAPL), (BAC), (INTC): Finerman's Firm And Finerman Own (IBB), (RIG)
Finerman's Firm Owns SPX Puts

For Tim Seymour:
Seygem Asset Management Owns (FCX)
Seygem Asset Management Owns (TSO)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owns (X)
Seygem Asset Management Owns (PBR)

For Pip Coburn
Pip Coburn Invests In Buckeye Delta Fund
Buckeye Delta Fund Owns (AAPL), (ADBE), (ANSS), (RIMM), Arm Holdings plc, (GOOG)
Buckeye Delta Fund Is Short (NOK), (PALM), (MOT)

For Paul Miller
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (FITB)


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