With the introduction of the new iPhone on Tuesday, the “Fast Money” traders would consider these five Apple derivative trades.
To start, Apple CEO Tim Cook unveiled a new application, which lets you create and mail greeting cards straight from the iPhone. Users can choose from more than 20 designs across six different categories, such as birthdays. After an order is placed, Apple prints the card and then mails it anywhere in the U.S. for $2.99. The app will notify the user when the card has arrived at its destination.
(RELATED: Disappointed In the New iPhone? Don’t Be)
As Apple announced the Cards app Tuesday, shares of Shutterfly fell sharply. After all, the Redwood City, Calif.-based company provides Internet-based greetings and allows customers to share and print their pictures online. The stock has a huge valuation, but trader Guy Adami thinks the sell-off has provided an opportunity to get in.
American Greetings’ stock also fell following the Cards app announcement.
Meanwhile, trader Stephen L. Weiss said Qualcomm is another name to consider. The San Diego-based technology company makes the dual-core A5 chip that goes into the new iPhone.
Trader Karen Finerman would stay away from Hewlett-Packard . Apple has created an ecosystem, where people who buy one Apple product will want another and another and so on. People will still have PCs, but Finerman thinks most people will buy Apple products and that doesn’t bode well for H-P.
Finally, Joe Terranova of Virtus Investment Partners is looking at Nuance Communications . Last year, Apple bought voice search app Siri and integrated it into the iPhone operating system. Voice recognition is just another leg in the Apple ecosystem, Terranova said, so NUAN might be worth looking at.
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