"It's sinking more in after-hours [trading] on the news that Disney is ending its movie deal with Netflix [in] 2019, in part so it can do its own streaming service, although that news isn't stopping Disney's stock itself from declining on a revenue miss in part from weaker cable numbers, even as the earnings were better than expected," the "Mad Money" host said.
Disney and Pixar movies will be moved off Netflix's platform towards the end of 2018. Also on Tuesday, Disney CEO Bob Iger told CNBC that the two companies have a "good relationship."
The entertainment giant is also planning to launch its own streaming service for its sports network, ESPN, which drove a 23 percent decline in Disney's cable operating income.
Netflix's stock was down more than 3 percent in after-hours trading as of Tuesday evening.