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'Fast Money' Recap: Netflx Draws Bipolar Views

NEW YORK ( TheStreet) -- The markets rallied Wednesday on the Fed's decision to leave interest rates low until 2014.

The Dow Jones Industrial Average jumped 83.10, or 0.66%, to 12,758.85. The S&P 500 added 11.41, or 0.87%, to 1326.06. The Nasdaq rose 31.67, or 1.14%, to 2323.31.

Melissa Lee, the moderator of CNBC's "Fast Money" show, led off the discussion with Netflix (NFLX - Get Report), which was up 13% in afterhours trading on a strong earnings report.

Pete Najarian said he found it difficult to read the stock heading into earnings because the report could have gone either way.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Joe Terranova, who remained skeptical of Netflix, said he would get back into the stock on a pullback to the mid-$90s. He said investors should stay away from the analysts following the stock, noting they have been "whipped all over the place" on fundamentals, technicals and pricing.

Lee pointed out that it will be difficult for investors to get a handle on the stock because of the company's decision to provide less disclosure on such matters as turnover numbers and subscriber acquisition costs.

Karen Finerman said she was staying away from the stock because she didn't fully understand the company's situation. She said she was wary of the stock's stretched valuation and a worrisome short interest issue.

Whitney Tilson, a managing partner for T2 Partners, was optimistic about the outlook for Netflix, which represents the tenth largest position of his firm's portfolio.

He said his firm trimmed a little of its stake into earnings because it had no idea where the earnings would come in. He said today's results reduces the odds of a downside scenario, adding he particularly liked what Netflix said about free cash flow, the positive trend in net subscriber additions and fewer streaming cancellations.

He said the signs point to the likelihood of a return to a growth story and less likelihood of subscriber loss going forward. He said he expects to see short covering on Thursday.
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