"Star Wars" drove strong results for Walt Disney, but some "Fast Money" traders would still hesitate to buy the media giant's shares.
Disney posted earnings and revenue Tuesday that handily beat analysts' expectations, driven by strong growth in its film unit. But its shares fell in after-hours trading, partly on a decline in operating income for cable networks.
Disney shares fell in after-hours trading.
Some traders echoed investors in expressing concerns about the cable business. Trader Brian Kelly said that he would avoid the stock until momentum picks up in Disney's cable segment, particularly ESPN.
Analysts have expressed concerns about so-called "cord-cutting" amid a consumer shift away from cable and toward streaming. Trader Tim Seymour, though, contended that Disney has a strong chance to "survive and innovate" even in that environment.
Disney CEO Bob Iger addressed those concerns in an interview with CNBC on Tuesday, saying the company would "thrive in a new media world."
Trader Steve Grasso, who owns Disney shares, touted the value of its brands and intellectual property. He noted, however, that its shares may not make a good buying opportunity unless they fall more.
The stock now trades at a "pretty reasonable price" and could climb on Wednesday, contended trader Guy Adami.
Disney's strong report followed disappointing results from media rival Viacom on Tuesday morning that sent its shares more than 20 percent lower. The stock looks "very cheap" after the plunge, Seymour added.
Tim Seymour is long AAPL, BAC, DO, F, FCX, GM, GOOGL, INTC, JCP, NKE, SINA, T, TWTR, VZ, XOM. Tim's firm is long BABA, BIDU, IWM, KO, MCD, PEP, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.
Steve is Long AAPL, AEO, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long CXO, OXY, BP, CVX, RIG, AMZN kids own EFA, EFG, EWJ, IJR, SPY
Brian Kelly is long BBRY, Bitcoin, GLD, SLV, TLT, US Dollar, Yen; he is short Aussie Dollar, British Pound, CS, DB, Euro, EWH, Hong Kong Dollar, UBS, SPY, Yuan.
Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.