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After Earnings, Will Netflix Still be the Mother of all Momentum Stocks?

Will Netflix remain the mother of all momentum stocks after the company reports its quarterly earnings results after Monday's closing bell?

The was the question the "Fast Money" traders debated Monday. Options trader Pete Najarian isn't sure if Netflix is a smart trade, but he does think it's dangerous. The stock has only continued to move to the upside and will likely continue to push higher. Those interested in shorting NFLX should note that there's already 20 percent short interest in the name, he noted.

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Netflix has so much momentum, Najarian doesn't recommend chasing it. He suggests waiting for a pullback.

Stuart Frankel's Steve Grasso said nobody really understand why this stock continues to have so much momentum, though. Although Netflix's subscriber growth is in question, he said it's still "really hard" to bet against this name.

"If you want to short stocks, you never want to do it in a stock with high short interest because that side of the trade is then too crowded," Veracruz founder Steve Cortes said, adding he's never shorted NFLX for that reason, even though he's long doubted the name.

Instead of shorting the stock, Cortes said the contrarian move might be to go long NFLX. Cortes himself would rather go flat the stock because it's too dangerous. If you own it, he recommends taking profits.

Brian Kelly, founder of Kanundrum Capital, said he once tried to short NFLX via options, but got burned. Like Cortes, he recommends NFLX shareholders take some profits now.

Tony Wible, an analyst at Janney Capital Markets, downgraded the stock to a 'sell' after its last quarter. While he thinks the company will beat numbers on Monday, he isn't excited about its future. The company will have to overcome its recent price hike public relations blunder and face challenges of expansion in Latin America, he said.

In Latin America, the companies that are building out the broadband network also provide online content, Wible said. These companies have great name recognition, where Netflix does not.

Netflix is also facing a number of accounting challenges, he added. It's been using accounts payable and trade credit to hide cash losses that they've been running, but Wible thinks the company will ultimately need to raise capital by increasing prices by 60 percent.

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TRADING PANDORA

Speaking of technology names, the "Fast Money" traders discussed Pandora . Is this Internet radio company's stock worth a look?

Don't touch it, Kelly said. When it comes to Internet radio, there aren't big barriers to entry, he noted. So Pandora isn't an exciting company for him.

Pandora executives have said they're not sure when the company will turn a profit, Cortes noted. For that reason, he would rather go with "best of breed" name Apple.

The rally has been about Apple, Cortes aruged. The Semiconductors exchange-traded fund has been struggling. It's been making lower lows and higher highs, which he said doesn't bode well.

Najarian disagreed with Cortes, noting that there's been a nice push to the upside from many technology names, including Advanced Micro Devices , Intel and Microsoft .

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Trader disclosure: On July 25, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns Pete Najarian owns (AAPL), (C), (GE), (PFE), (MRK), (TCK), (HPQ), (MS), (MSFT), (SCCO), (TER), (AKAM) and (MRVL). Pete Najarian owns (DE) call options. Pete Najarian owns (CROX) call options. Pete Najarian owns (V) call options. Pete Najarian owns (BX) call options. Steve Grasso owns (AMD), (ASTM), (BA), (BAC), (C), (D), (JPM), (LIT), (LPX), (LVS), (MAR), (MHY), (NDAQ), (PFE), (PRST), (UAL), (XHB), (XLB) and (XLI). Steve Cortes owns (EXC), (SO), (PEP), (PM), (GS) and (MS). Steve Cortes is short Corn. Steve Cortes is short Wheat. Steve Cortes is short (LULU). Steve Cortes is short (IYT). Steve Cortes is short Copper. Steve Cortes is short (EUR).

Steve Grasso
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MET)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (UAL)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are short (QQQQ)

Brian Kelly
Accounts Managed By Brian Kelly Capital Own (TLT) calls
Accounts Managed By Brian Kelly Capital Own (GLD) calls
Accounts Managed By Brian Kelly Capital Own (GDXJ) calls
Accounts Managed By Brian Kelly Capital Own (SPY) calls
Accounts Managed By Brian Kelly Capital Own (BMO)
Accounts Managed By Brian Kelly Capital Own (SLV) calls
Accounts Managed By Brian Kelly Capital Own (FCVX) calls
Accounts Managed By Brian Kelly Capital Own (MOS)
Accounts Managed By Brian Kelly Capital Own (UGA)
Accounts Managed By Brian Kelly Capital Own (USO) calls

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