Disney beat the Street's earnings expectations, but the stock drifted more than 6 percent lower after CEO Bob Iger warned about slowing cable subscriptions to key TV channels like ESPN. Shares had surged about 30 percent higher so far this year.
"I wouldn't say that they have failed you this quarter. They are a victim of their own success," said trader Tim Seymour.
Disney fell to about $114 per share at its after-hours level. Seymour said it looks appealing at about $108 per share.
Trader Dan Nathan added that it makes sense to buy if it reaches $110 per share.
Electric automaker Tesla reports quarterly earnings Wednesday, with analysts expecting a loss of 60 cents per share, according to a consensus estimate from Thomson Reuters. The stock has soared nearly 20 percent this year, and with a lot of potential to disappoint, it could give up much of those gains, Seymour said.
The stock could test $220 per share, about $46 lower than where it closed Tuesday, he contended. Trader Guy Adami sees it falling to about $225 per share.
Tim Seymour is long AAPL, T, BAC, DIS, F, GE, GM, GOOGL, INTC, JPM, TSL, SUNE, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.
Dan is long QQQ sept put, JOY sept calls, TWTR, TWTR sept call spreads, SO, BA sept put spread, COST aug put spread, TJX aug put, SLB aug 28th put spread, MSFT aug / nov put spread.
Karen is long BABA, BAC, C, FINL, FL, GILD, GOOG, GOOGL, JPM, KORS, M, MDAS, BABA puts, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, KORS, M, MDAS, SUNE, URI, XBI, KORS call spreads, SUNE call spreads, KORS puts, M puts, her firm is short IWM, SPY, MDY, Karen Finerman is on the board of GrafTech International.
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.