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Pete Najarian: EBay a ‘Buy’ on Earnings Weakness

With EBay pulling back in extended trade, Pete Najarian suggests taking the plunge and buying.

“If you want to get into this space, Ebay is the stock to buy,” he says.

Trader Joe Terranova agrees. “This is a great e-commerce story,” he says.

And a sell-off in the wake of earnings presents an attractive opportunity, according to these pros.

In extended trade EBay dropped as much as 3%, with investors spooked by a year over year decline in net income. By the numbers, EBay said second-quarter net income was $283.4 million, or 22 cents per share. That compares to net income of $412 million, or 31 cents a share, in the same period a year earlier.

However, the decline in net income year over year was mainly driven by costs from eBay's acquisition of GSI Commerce earlier this year. The company said its main online Marketplace business showed signs of a turnaround and its PayPal unit continued to grow quickly.

And in case you're wondering, results did beat expectations – the company reported second-quarter earnings of 48 cents a share, while the Street expected 46 cents. And sales for the most recent quarter rose to $2.76 billion, up from $2.22 billion last year.







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Trader disclosure: On July 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; Terranova owns (XOM) ;Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Pete Najarian owns (AAPL); Pete Najarian owns (BX) calls; Pete Najarian owns (HPQ); Pete Najarian owns (MS); Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI); Stutland Owns (GOOG) and short (GOOG) calls; Stutland Owns (IBM) and owns (IBM) calls; Stutland Owns (INTC) and owns (INTC) calls

For Brian Stutland
Stutland's Firm Is A Market Maker Holding Positions In VIX Futures And Options, SPX options and futures, SPY options, and VXX Stock And Options

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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For Steve Grasso
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
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Stuart Frankel & Co and its partners own (MU)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners own (QQQQ)

Patrick Wang
**NO DISCLOSURES

For Ed Mills
The financial analyst preparing this investment research, , certifies that the views expressed herein accurately reflect their personal views as to the subject security or securities and the issuer(s), and further certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the analyst in their investment research.

For Anthony Scaramucci
SkyBridge Capital Is A Fund Of Funds Manager
Funds Held May Or May Not Own The Recommended Securities
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Held a fundraiser for Mitt Romney
CNBC.com with wires.

CNBC.com with wires.