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Pro Traders: Apple’s MoJo Trumps Technical Breakdown

After the bell Wednesday, Apple again wowed the Street with results that blew past expectations, fueled by solid demand for the iPhone and Mac computers.

In fact the results were so strong that the Fast Money traders think they will trump bearish sentiment that's been lingering in the stock for about 2 months.

As you might remember, the traders have been noting that Apple has under-performed the rest of technology since the middle of February. "(But) That technical reversal is over," trader Joe Terranova says.

Trader Guy Adami agrees. He says it was a fantastic quarter, "It appears the downtrend is broken and the stock is probably on its way to a new all-time high."

Looking at the numbers, Apple reported a net profit of $5.99 billion, or $6.40 a share, while revenue surged 83 percent to $24.67 billion. That surpassed expectations for $5.37 in earnings and $23.4 billion of revenue.

That's not to say the earnings report wasn’t without some concerns. Apple sold just 4.69 million iPads in the quarter, falling short of Wall Street's expectations. Some analysts had projected shipments of closer to or even more than 6 million.

However, BGC analyst Colin Gillis wouldn't get bogged down by what he calls "the only negative in the report. It's important to put it in perspective." He reminds the desk that the product generated $2.8 billion in revenue this year, versus zero a year ago. "It's a product that's come out of nowhere."

Sales of other products, however beat projections. Apple said it sold 3.76 million Macs, up 28 percent from a year ago. It also sold 18.65 million iPhones, which is the technology company's most important product line due to high margins.

Trader Tim Seymour also finds the results bullish. "People needed to see some numbers and now they got 'em," he says. "The guidance was good enough to keep the up-trend alive."

However, Guy Adami also issues at least a word of caution. "With all that said the guidance wasn't fantastic," he reminds. Of course, Apple is notorious for sand-bagging or issuing very conservative guidance. But at some point, Adami doesn't think it will be sand-bagging. "At some point I think it all catches up. But not now."



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Trader disclosure: On April 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman and Finerman's Firm own (AAPL); Finerman and Finerman's Firm own (BP); Finerman owns (C); Finerman and Finerman's Firm own (CVS); Finerman's Firm owns (HPQ); Finerman's Firm owns (IBM); Finerman's Firm owns (JPM), is long (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm owns (MSFT); Finerman's firm owns (TGT); Finerman owns (USO); Finerman's Firm is short (IWM), (MDY), (SPY); Finerman's Firm is long S&P 500 puts; Finermna's Firm is long Russell 200 Puts; Weiss owns (CSX); Weiss is long (AAPL) calls; Weiss owns (EMC); Weiss owns (AKAM); Weiss owns (QCOM); Weiss owns (SMCI); Weiss owns (NAV); Weiss owns (BTU); Weiss owns (JPM); Weiss owns (VZ); Weiss owns (HBAN); Weiss owns (KEY); Weiss owns (CMA); Weiss owns (GDX); Weiss owns (DRR); Weiss owns (TBT); Weiss owns (UUP); Weiss owns (MDRX); Weiss owns (NIHD); Weiss is long (IWM) puts; Weiss is short (X); Weiss is short (AKS); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova owns (JPM); Terranova owns (XOM); Terranova owns (OXY); Terranova owns (C); Terranova owns (VRTS); Terranova owns (BAX); Terranova owns (BX); Terranova owns (AKAM); Terranova owns (TCK); Terranova owns (HOC); Terranova owns (UPL); Terranova owns (V)

Louis Navellier
Funds Managed By Louis Navellier Own (VMW), (JNJ), (CAT), (DE), (BWA), (CMI), (FFIV), (AAPL)

Mike Khouw
Cantor Fitzgerald is a Market Maker in (SNDK)

Finerman SOT 2/8/11
Finerman owns (AVP) Calls

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & IRL PLC

For Colin Gillis
**No Disclosures

For Loren Loverde
**No Disclosures

Late additions:
Seymour owns (AAPL)
Seymour owns (BX)
Seymour owns (F)
Seymour owns (POT)
Jon Najarian owns (AAPL)
Jon Najarian owns (YUM)
Jon Najarian owns (PLXS)

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