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After Hours Action: Netflix, Texas Instruments

After the bell, market moving headlines crossed concerning both Netflix and Texas Instruments. What must you know?

AFTER HOURS ACTION: NETFLIX

Online video provider Netflix said on Tuesday long-time chief financial officer Barry McCarthy had resigned and would be succeeded by company finance veteran David Wells.

A spokesman said McCarthy first expressed his intention to resign in 2004, but decided to remain as the company built itself into a DVD rental and streaming powerhouse.

"He always had aspirations beyond Netflix," said company spokesman Steve Swasey, declining to elaborate. The company's stock fell 2.6 percent in after-hours trading following the company's announcement.

What’s the trade?

This is a momentum stock and it looks to me like the momentum has changed, says Joe Terranova.

But the management team is very adaptive, counters Anthony Scaramucci. Valuations may be stretched but I’m not terribly concerned by this development.

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AFTER HOURS ACTION: TEXAS INSTRUMENTS

After the bell, microchip bellwether Texas Instruments narrowed its quarterly earnings and revenue guidance, in line with analysts' expectations, as the industry dealt with sluggish end-of-year demand.

The maker of chips used in products ranging from cars to cellphones said it expects quarterly earnings between 61 cents and 65 cents per share on revenue of $3.43 billion to $3.57 billion.

The new outlook implies a midpoint of 63 cents and $3.5 billion, which is in line with average analyst expectations according to Thomson Reuters.

In October, Texas Instruments warned its fourth-quarter revenue would be affected by slow demand for chips used in consumer products like computers and televisions and that growth in industrial chips would be less spectacular after a year of strong expansion.

What’s the trade?

Texas Instruments is currently trading around 13 times forward earnings while rival Intel is trading around 11, says Guy Adami. In the wake of developments, you’ve got to ask yourself which you like more.

I like Intel, says Anthony Scaramucci.






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Trader disclosure: On December 7th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour Owns (AAPL), (BAC), (BX), (CSCO), (GE); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (C), (GS), (NKE), (OXY), (PEP), (PFE), (VRTS), (UPL)

For Anthony Scaramucci
Scaramucci and SkyBridge Capital own (BAC)
Scaramucci and SkyBridge Capital own (C)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (ALK)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EPR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
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Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
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Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (DRYS) calls
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (DE) call spread
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (GDXJ) calls
Accounts Managed By Kanundrum Capital Own (BG) calls
Accounts Managed By Kanundrum Capital Own (AAPL)
Accounts Managed By Kanundrum Capital Own (ARMH)
Accounts Managed By Kanundrum Capital Own (QCOM)
Accounts Managed By Kanundrum Capital Own (RDC)

For Scott Nations
Nations is long (TBT)

For Nick Calamos
Calamos Investments Mutual Funds Own (ORCL)
Calamos Investments Mutual Funds Own (ALTR)
Calamos Investments Mutual Funds Own Autonomy
Calamos Investments Owns (ALTR) Calls

For Peter Boockvar
***No Disclosures***

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