The Netflix report included positive signs like strong international user growth, Najarian said. That bodes well for the company's expansion in the future, but Netflix stock was overvalued even before the earnings announcement, he argued.
Read MoreNetflix Q4 adjusted EPS 72 cents versus Wall St expectations of 45 cents
The post-earnings bump brought Netflix over $400 per share in after-hours trading. The stock should linger around that level before giving signs of where it will move next, said trader Guy Adami.
"I think it trades $405 and then we see what happens from there," Adami said.
Trader Dan Nathan agreed that the Netflix valuation was inflated, especially at the levels it hit during Tuesday's after-hours trading.
"Netflix is a great company; it's a great story. I think the valuation will probably come in a little bit," Nathan said.
Read MoreThe technical case for shorting Netflix
The massive earnings beat came amid low sentiment leading up to the announcement, said trader Tim Seymour. Year-over-year growth has disappointed, and Seymour would "stay away" from Netflix stock, he said.
Tim Seymour is long AAPL, BAC, C, DIS, F, GE, GM, GOOGL, INTC, JCP, BX and SUNE. Tim's firm is long BABA, BIDU, CCU, DSKY, KNDI, MCD, NKE, NOK, SINA, SBUX, TSL and VIP.
Pete Najarian is long AAPL, BABA, BAC, CSX, DB, EBAY, INTC, JPM, KKR, KO, LLY, LOCO, MRK and ODP. He is long calls AA, AAL, ABX, APD, ARCP, BABA, BIC, BBRY, CY, DAL, DD, DNKN, EBAY, GS, GT, HCBK, IAG, ISIL, JPM, MAS, MCD, MS, PEP, RF, SPY, UAL, WU and XLF. Today, he bought EBAY calls.
Guy Adami is long CELG, EXAS and INTC. Guy Adami's wife, Linda Snow, works at Merck.
Dan Nathan is long TWTR, TLT March 130/120 put spread, TSLA Feb 210/180/150 put fly, XLU March 48 / 44 put spread, QQQ Feb 101/ 95 put spread, XLF Feb 24/21 put spread, XRT March 90/85 put spread and BBRY June call spread.