Halftime: Did Google Just Ignite a Sea Change in Tech?

On Thursday, tech stole the spotlight with investors wondering just how rapidly new innovations could generate a sea change in the way people shop.

The chatter was largely triggered by Google, which introduced two new products – Google Wallet and Google Offers.

Called a new era for commerce by the search giant, largely Google Wallet will allow people to wave their phones at check out instead of swiping credit / or debit cards – or use cash.

Designed to work as an app on Android phones, Google, Mastercard , Citigroup, First Data and Sprint will make the service available this summer to people in New York and San Francisco.

Meanwhile Google Offers “will also converge online retailing with offline retailing,” adds CNBC’s Mary Thompson. “If you’re in a store, it will tell the retailer where you are in the store and the retailer will be able to suggest items and also present coupons.”

"It's significant because Google is attempting to transform the shopping experience all together," Thompson explains, "into a single tap on your smartphone."

Did Google just ignite a sea change in tech and the way people shop? And what does that mean for the stock?

Instant Insights with the Fast Money traders

Fast Money trader Steve Cortes is very intrigued by these new developments. On the news he says, “I’m thinking of buying Google and shorting Apple.” Cortes feels Google is making smart strategic moves by focussing on applications that he calls 'incredibly innovative'. By contrast Cortes says, “Apple is not being terribly innovative and far too focused on hardware.”

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Trader Brian Kelly would take a wait and see approach. “It’s a substantial move but it’s unclear if Google is making money off this,” he says. “If they are making money off this, then I’m a buyer of Google.”

Guy Adami just can’t get on board. He’s focused on the technicals. “The stock has underperformed since January – this was a $640 stock and it’s struggling to hold $520,” he says. “I’d avoid until it breaks above $550 or if it slips below $500 – and that’s where I think it’s heading.”

Trader Steve Grasso suggests going downstream and playing these developments with Mastercard as well as Visa . “It may not be a direct play,” he says. “But it’s not a bad play given the charts and the stock performance.”

* On Fast at 5 Karen Finerman suggests playing it longGemalto . And Joe Terranova says look at NXP semiconductor. “They’re the one actually creaetiong the secure chip.”

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SHOULD BALLMER GO?

Elsewhere in tech, Microsoft landed on the trader radar after hedge fund giant David Einhron called for CEO Steve Ballmer to step down.

Later, a Microsoft director told CNBC that Ballmer still has the support of the board and no “special” meeting would likely be called in the wake of Einhorn’s comments.

How should you trade Microsoft, now?

Guy Adami is indifferent. "At 24.5 I don’t think there’s tremendous downside but I also think the stock is stuck in a range between 24 and 26," he adds. And he also says Oracle and IBM are "more interesting places" in tech.

Brian Kelly isn't a buyer at all. "I don’t see anything in Microsoft’s suite of products that is going to ignite Microsoft stock," he says.

In fact, Steve Ballmer's inability to generate exciting new products is among the many reasons why Eric Jackson, founder of Ironfire Capital dumped all his shares.

Check out what Jackson tells us in a live interview. Watch the video now!

Read More:

Microsoft CEO Ballmer Still Has Board's Support: Director

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Trader disclosure: On May 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;
Cortes owns (SO); Cortes owns (EXC); Cortes owns (KFT); Cortes owns (K); Cortes owns (WMT); Cortes is short Nikkei; Cortes is short EEM vs S&P long; Cortes is short AUD; Cortes is short GBP; Cortes is short EUR/JPY cross; Cortes is short (CAT); Cortes is short (DE); Adami owns (AGu); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Grasso owns (AKS); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasos owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST)

Brian Kelly
Accounts Managed by Brian Kelly Capital are long australian dollars
Accounts Managed by Brian Kelly Capital are long new zealand dollars
Accounts Managed by Brian Kelly Capital own (FCX)
Accounts Managed by Brian Kelly Capital own (SLW) calls
Accounts Managed by Brian Kelly Capital own (TLT) calls
Accounts Managed by Brian Kelly Capital own (IPI) calls
Accounts Managed by Brian Kelly Capital own (AAPL)
Accounts Managed by Brian Kelly Capital own (BHP)
Accounts Managed by Brian Kelly Capital own (MCP) calls
Accounts Managed by Brian Kelly Capital own (SLV) calls
Accounts Managed by Brian Kelly Capital own (NEM)

Fot Steve Grasso
Stuart Frankel & Co and it’s partners own (ABX)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (NEM)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are Short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)

For Liz Dunn
No Disclosures on AEO
FBR Capital Markets is a Market Maker in (ARO), (LULU)

For Eric Jackson
*No Disclosures

CNBC.com with wires.