The "Fast Money" traders debated whether it's better to invest in "new tech" companies like Netflix or "old tech" companies like IBM after both companies reported earnings that bested analyst estimates.
Netflix saw quarterly sales pass $2 billion for the first time thanks to original series like "Stranger Things" and "Narcos." Revenue from IBM's "strategic imperatives," which include the company's cloud and analytics businesses, grew 16 percent year over year.
Trader Dan Nathan said that Netflix's plan to license its content in China rather than launch its service there is a "great business model."
Trader David Seaburg said that although Netflix's Monday earnings report may "alleviate" some of the fears in the near term, investors have to wait and see what happens in 2017.
Trader Brian Kelly said that if IBM starts to see growth in Watson, its artificial intelligence business, that would be "the future of this company." He said that given the stock's current valuation and price, it's probably worth holding.
Nathan disagreed and said that he would have to see a substantial ramp up in Watson's revenue to justify IBM's valuation.
IBM has been "long thrown out the window essentially for being a legacy company," Seaburg said. "But they bolted on some strategic initiatives that have allowed this company to sort of have a second life."
— CNBC's Anita Balakrishnan contributed to this report.