Yahoo earnings beat a reason to sell stock: Trader

Yahoo blew past expectations in its quarterly earnings results, sending the stock higher in after-hours trading, but Brian Kelly of Brian Kelly Capital said it was time to exit the trade.

"I think you have to sell it. Sell it in the after-hours and take the profits. It's a special-situation stock," he said. I don't think you're going to get killed in this, but the way I trade these—and the way I've actually traded Yahoo—is when you get a big 5 percent drop on disappointment, you buy it because you know Starboard is going to come in. … You sell the pops and then you buy them on drops."

Yahoo posted earnings of 52 cents a share on revenue of $1.09 billion, beating expectations of 30 cents per share on $1.05 billion in revenue. Shares, which had closed up 2.29 percent at $40.18, rallied 4 percent in after-hours trading.

Read MoreYahoo projects Q4 revenue between $1.14 billion and $1.18 billion

The Yahoo logo is displayed in front of the Yahoo headqarters in Sunnyvale, California.
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The Yahoo logo is displayed in front of the Yahoo headqarters in Sunnyvale, California.

On CNBC's "Fast Money," Kelly said he had bought shares of Yahoo at $39 and sold at $42.

Investors looking to buy should wait for the stock to drop below $40, he added.

Tim Seymour of Triogem Asset Management said Yahoo was an easy stock to own.

"To me, this is not a lot more complicated than looking at the some of the parts and also looking at where people are valuing their business," he said. "If you think there is a very value-destructive acquisition in the cards, then this is a stock you worry about."

Read MoreYahoo needs more than just an earnings beat, say analysts

Seymour said he was certain stock buybacks and capital restructuring would happen, sending shares to $50 or above.

"This is a stock I'd own," he said.

Guy Adami of Private Advisor Group was less sanguine.

"I don't think it gets that high, but I think $45 is at least in the cards," he said.

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From a technical standpoint, Yahoo stock was poised to climb, Adami added.

"It was good enough for me to get the stock to the next level," he said.

Karen Finerman of Metropolitan Capital Advisors noted activist fund Starboard Value could continue to pressure Yahoo to increase its value.

"I don't think this will be enough to satisfy Starboard," she said.