Following better-than-expected quarterly earnings and a bump in its stock, Yahoo was constrained going forward, Joe Terranova of Virtus Investment Partners said Tuesday.
Arguing that the stock has appreciated because of an aggressive buyback program, he added that the catalyst was completely factored in and there was not much upside left for Yahoo shares.
"I think their mobile strategy absolutely stinks, and I think further appreciation in Yahoo is not going to occur," he said.
Terranova made the comments amid a debate about the stock on "Fast Money."
Stephen Weiss of Short Hills Capital said that there was plenty of potential left for the stock, praising new CEO Marissa Mayer.
(Read More: Yahoo Earnings Beat; Revenue Outlook Is Light)
"This was a good quarter when it could've been another disastrous quarter because she hasn't been there for so long," he said, calling the downside risk for the stock "very limited."
Weiss also praised Mayer's leadership and her ability to forge partnerships, predicting that the stock could climb back toward the mid-20s.
Rosecliff Capital's Mike Murphy said that the run-up in Yahoo's share price was the entirety of the honeymoon period for Mayer.
"I think it's actually over," he said.
Josh Brown of Fusion Analytics agreed.
"I don't expect another 30 percent enthusiasm rally happening minus actual fundamental improvement," he said.
Trader disclosure: On Jan. 29, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long GS; Mike Murphy is long TGT; Mike Murphy is long FB; Mike Murphy is long GOOG; Mike Murphy is long TWI; Mike Murphy is long TOL; Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is long GOOG 750 CALLS; Joe Terranova is long NFLX 160 CALLS; Joe Terranova is long AAPL 455 CALLS; Stephen Weiss is long RIMM; Stephen Weiss is long QCOM; Stephen Weiss is long TBF; Stephen Weiss is long M; Stephen Weiss is long BTU; Stephen Weiss is long CNX; Stephen Weiss is long WLT; Stephen Weiss is long AAPL CALLS; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long QCOM; Josh Brown is long PFE.
