Trading Walt Disney after downgrade slide

Customers holding lightsabers and dressed as Jedi Knights collect their tickets from the counter at the first public screening of Walt Disney's "Star Wars: The Force Awakens" at a Vue Entertainment cinema in London.
4 ways to play Disney   

Walt Disney shares slid Tuesday after a downgrade, but "Fast Money" traders were torn over whether the media giant is worth buying.

Macquarie downgraded Disney to "neutral" from "outperform," citing concerns about subscriber losses at sports network ESPN and a lack of catalysts after the recent release of box office darling "Star Wars: The Force Awakens." The stock closed the day about 2 percent lower.

Some agreed with the bearish sentiment. Trader David Seaburg contended it faces "too many headwinds" and is no longer "something you can buy and put away" as an investment.

Disney deserves a "premium valuation," but investors should question its price at current levels, added trader Tim Seymour, who owns the stock.

A 'Star Wars: The Force Awakens' advertisement is seen in Times Square on December 11, 2015 in New York City. Disney acquired Lucasfilm studios and the rights to the Star Wars franchise in 2013 for $4 billion.
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A 'Star Wars: The Force Awakens' advertisement is seen in Times Square on December 11, 2015 in New York City. Disney acquired Lucasfilm studios and the rights to the Star Wars franchise in 2013 for $4 billion.

Others, though, would use the weakness as an opportunity. Disney would make a strong long trade if it falls more and holds $95 per share, about $6 lower than where it closed Tuesday, said trader Guy Adami.

Trader Steve Grasso contended that Disney's business will remain strong even with weakness in cable. He also owns the stock.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JCP, JPM, KO, LGF, RL, T, TWTR, VRX. Tim's firm is long BABA, BIDU, MCD, NKE, SBUX, YHOO.

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc.

Steve Grasso

Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long MCD kids own EFA, EFG, EWJ, IJR, SPY

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.