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.