'Fast Money' Recap: Twitter Files For Its IPO
Brian Kelly said 1,650 in the S&P 500 is the level he's watching and that the market dips remain buyable until that level is breached.
Steve Grasso said he doesn't think either party is looking at defaulting on U.S. obligations and that the market remains buyable.
Karen Finerman concurred, saying that there will be some volatile days leading up to the debt ceiling debate, but isn't changing her strategy because of it.
Steven Rees, private bank head of U.S. equity strategy at J.P. Morgan , was a guest on the show and said he's not expecting a big pullback. He added that they're overweight U.S. equities and that investors should hold onto what they own, while selectively buying on pullbacks. He argued that financials should do well in 2014, when tapering will likely be in effect along with higher interest rates.
For their "shutdown shopping lists," Kelly was a buyer of gold, with expectations that the government shutdown will cause the Federal Reserve to postpone tapering even longer. Guy Adami suggested buying stocks that have stood strong against negative headlines, such as Visa
Twitter filed its S-1 with the SEC and revealed that it has 215 million monthly active users, 100 million of which were considered daily users. Mobile has been its primary driver for growth and in 2011 to 2012, revenues increased 198% to $316.9 million. In the first six months of 2013, revenues were up 107% to $253.6 million.
Sam Hamadeh of PrivCo was a guest on the show and said Twitter should have very strong gross margins, because the company is a cash cow with little overhead expenses. He added that some of the user data was a bit disappointing and expects the IPO to launch on either Nov. 8 or Nov. 15.
Both Adami and Kelly said they would rather own Twitter instead of Facebook
Grasso said he would expect more investors to sell stock in Facebook for the Twitter IPO, than sell out of Google.
Regarding the recent price action in the broader market, Grasso said this is a huge buying opportunity if the market is selling off over default fears, because that will not happen.