Alibaba shares will likely push higher despite skepticism about the tax-free status of Yahoo's spinoff of its $34 billion stake in the Chinese e-commerce company, some CNBC "Fast Money" traders said.
Yahoo shares dropped on Tuesday amid concerns that a change in tax rules could make the spinoff more expensive. Regardless of the tax outcome, Alibaba should climb higher as a standalone play, trader Dan Nathan said.
"My way to play this whole thing is playing Alibaba," he said, adding that the stock seems to have "really good support" at $90 per share—just below where it closed Wednesday after a nearly 3 percent gain.
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Trader Guy Adami agreed, saying the stock "seems as though it wants to make that next leg higher."
Trader Tim Seymour added that Tuesday's Yahoo slide—which took more than $3 billion off its market value—was overplayed. Seymour—who has a long position in Yahoo—said it was a "great time" to buy the stock.
Yahoo Inc.
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Hewlett-Packard
Technology company Hewlett-Packard reports quarterly earnings on Thursday. Its stock has fallen more than 17 percent this year.
HP has a chance to move higher after its earnings and could rise to $38 per share in the short term, said trader Guy Adami. It closed around $33 on Wednesday.
But HP stock may not react well after earnings, and investors should stay cautious, trader Pete Najarian said.
"I think it flatlines for a while," he said.
FireEye
Shares of network security company FireEye rose nearly 2 percent Wednesday. Seymour—who owns the stock—said it makes an appealing play around $42, where it closed Wednesday.
FireEye shares have climbed nearly 34 percent this year
Jacob Pramuk
Source: http://www.cnbc.com/id/102696346
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