Chipmaker Intel beat on the top and bottom lines on Wednesday with earnings of 55 cents a share on revenue of $13.2 billion. Analysts were looking for profit of 50 cents a share on $13.04 billion.
The stock rose as much 5 percent after-hours, before cooling to trade around 2 percent higher at about $30 a share.
"I was hoping to see a $32 relief rally. I think you short it," said Dan Nathan, a trader on CNBC "Fast Money," adding that the stock could drop as low as $26 a share if the company's China business weakens dramatically. "I think you should get a pretty good entry tomorrow on the short side."
"Fast Money" trader Guy Adami said Intel's second quarter may have been good enough to get a small relief rally, but some of the results were lukewarm.
"When you look at some of the metrics—desktops down 22 percent year-over-year—it's not good. Margins [were] a little bit better, yes, but declining from the peaks that we've seen," Adami said.
He said investors should probably sell if the stock climbs to $33 a share.
Video streaming provider Netflix also posted second-quarter earnings that beat estimates, but revenue trailed. The company reported 3.28 million net new additions, beating forecasts of 2.46 million, according to FactSet. Shares jumped as much as 11 percent in after-hours trading.
"Fast Money" trader Brian Kelly called the share move "amazing," although he noted that some of it may stem from investors covering short bets.
"I will still go in the camp that you take profits here. It doesn't mean you have to short Netflix," he said. Still, he noted that its costs are increasing and the demand for new content will only grow.
"I'm just saying it's up so much, take a little bit off the top."
Fellow "Fast Money" trader Steve Grasso weighed in, saying he would sell Netflix, citing worries about its international growth and licensing.