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5 ways to play Amazon's new streaming service

As the markets pummeled Netflix and rewarded Amazon, the "Fast Money" traders were bearish on one streaming service's future prospects.

Netflix shares sank in extended trading after it said it expected 500,000 net domestic adds and a 2 million net international membership gain in the second quarter. Wall Street had expected 586,000 total domestic net adds, and 3.5 million internationally, according to StreetAccount. But competitor Amazon shares popped 1.5 percent in regular trading after it announced it would break out its video-streaming service as a standalone monthly subscription at a competitive price to Netflix, which in turn, had rolled out a recent price hike.

The "Fast Money" traders said there's a "line in the sand" for Netflix, and it's just not above it.

Netflix
Andrew Harrer | Bloomberg | Getty Images

Trader Guy Adami said he would stay long the stock if it were under $95, but at $100.45, the cash burn and valuation are just too "crazy." Trader Tim Seymour was also bearish on Netflix, especially whether its international prospects can have the same impact as in the U.S., while trader Dan Nathan said Netflix doesn't make the cut from a cash flow perspective.

While both Amazon and Netflix are "great" stocks, it's not the right environment for the companies, which are both down between 5 and 6 percent year-to-date, trader Steve Grasso said.

— CNBC's Everett Rosenfeld contributed to this report.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, AVP, BAC, BBRY, CLF, DO, EDC, EWZ, F, FCX, FXI, GM, GOOGL, GRMN, GE, GLNCY, INTC, LQD, MCD, MPEL, NKE, RACE, RAI, RL, SINA, T, TWTR, UA, VALE, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, short HYG, IWM, WYNN

Steve Grasso

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

Dan Nathan

Dan is long XLF may/ sept put spread. Dan is long AAPL April Put Fly, long PFE, long TWTR, long GE May 28 puts, long JPM April puts, long INTC April puts , long QCOM April put spreads, long HYG June puts, long IWM May and September puts, long XHB June put spread, long XLE April/June put spread. QCOM long May put spread

Guy Adami

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