How to trade Netflix after rocky earnings

Netflix disappointed Wall Street on Wednesday, but it may be too early to abandon the stock, some CNBC "Fast Money" traders said.

After the closing bell, the streaming media giant posted third-quarter earnings and revenue nearly in line with projections. However, its 880,000 new U.S. members fell well short of analysts' projections, sending shares lower in extended trading.

Red Netflix envelopes sit in a mail bin at the U.S. Post Office sort center, March 30, 2010, in San Francisco.
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Red Netflix envelopes sit in a mail bin at the U.S. Post Office sort center, March 30, 2010, in San Francisco.

But investors should not ditch the high-growth, big spending company just yet, said trader Guy Adami.

"I don't think the story is broken," he said.

Read MoreNetflix shares rebound as execs soothe investors

With the after-hours move, shares of Netflix traded just below $108. Adami said he would hold on to the stock using $95 per share as a stop.

Trader Steve Grasso added that he would wait to see how Netflix trades the rest of the week before jumping into the stock.

Much of the growth in Netflix comes from consumers demanding media streaming and instant original content, said trader Dan Nathan. He sees upside for streaming media companies but not Netflix specifically.

Nathan would bet on media through Time Warner, which he calls a more established company that has developed on-demand options for its successful HBO original series.

Disclosures:

Dan Nathan

Dan is long PYPL Oct call calendar, BA Oct put spread, INTC Dec put spread, QQQ Oct put spread, UAL Oct/Nov put spread, XLF Dec put spread, XLF puts, XLP Nov calls, XLU call spread, TWTR

Steve Grasso

Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long MCD, AMZN, SHLD kids own EFA, EFG, EWJ, IJR, SPY

Karen Finerman

Karen is long BAC, C, FINL, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FINL, FL, GOOG, GOOGL, GPS, JPM, KORS, KORS call spreads, M, M calls, M call spreads, M long puts, SUNE, SUNE call spreads, URI, URI long puts, her firm is short IWM, SPY, MDY, USO, XRT, Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, GS, INTC, Guy Adami's wife, Linda Snow, works at Merck.