Traders weigh media stocks ahead of Netflix earnings

159120938FB045_2013_Winter_
Frederick M. Brown | Getty Images Entertainment | Getty Images

The "Fast Money" traders debated Tuesday which media stocks are best positioned looking ahead to the rest of the year.

Netflix, which is scheduled to report earnings after the market close on Wednesday, has long argued that media players with the best content have pricing power. Trader Brian Kelly said he wasn't totally sold on that thesis and that he prefers Discovery Communications.

Trader David Seaburg disagreed and said there is a bull case for Netflix. He likes how Netflix talks about its content. Seaburg said he also likes Lions Gate and Disney.

Trader Steve Grasso said he still thinks the $100 level is a point of resistance for Disney shares. Grasso said, however, that if investors start to hear that ESPN subscriber numbers keep declining, Disney shares will come back down. The stock closed at $107.97 on Tuesday.

While Lions Gate shares shed 18 percent in 2016, trader Guy Adami said it has "seemingly gotten some footing back underneath it." Adami said 2017 is poised to be a better year for the company.


Disclosures:

GUY ADAMI

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

STEVE GRASSO

Steve Grasso's firm is long: AGN, BIIB, CHK, COG, CUBA, DIA, FCX, GLD, ICE, KDUS, MFIN, MJNA, MSFT, NE, REGN, RIG, SPY, TITXF, VIRT,WDR, WLL, ZNGA. Grasso is long: CHK, EEM, EVGN, GDX, KBH, MJNA, MON, MU, OLN, PFE, PHM, SPY, T, TWTR. Grasso's children own: EFA, EFG, EWJ, IJR, SPY. No shorts.

BRIAN KELLY

Brian Kelly is long: C, FCX, GDX, TSLA, SLV, Bitcoin.

DAVID SEABURG

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. David Seaburg and Cowen have a financial interest in EDIT. An employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore.