NEW YORK (TheStreet) --The S&P 500 climbed 0.3% in Wednesday's session, but after the close of trading all attention turned to earnings from high-flying stocks lincluding Tesla Motors (TSLA) - Get Report, Keurig Green Mountain (GMCR) and Fitbit (FIT) - Get Report.
Tesla shares fell 6.9% in after-hours trading, despite the company beating on EPS and revenue expectations. However, production guidance for 50,000 to 55,000 cars fell short of its previous guidance of at least 55,000 vehicles.
When looking at a weekly chart, Tesla is overbought, Steve Grasso, director of institutional sales at Stuart Frankel, said on CNBC's "Fast Money" TV show. The last two times that happened, shares fell 33% and 37%.
Guidance was slightly disappointing, but Guy Adami, managing director of stockmonster.com, found gross margins of 23.5% the most disappointing thing from the report. Shares failed to break above $290 and the stock seems likely to fall to $220.
Dan Dolev, an auto analyst at Jefferies, has a buy rating and $360 price target on Tesla. While the production guidance was disappointing for full-year 2015, the automaker plans to produce 1,600 to 1,800 new models per week in 2016, which equates to an impressive 83,000 to 93,000 for the full year. Gross margins should also "creep back" toward 25%, as the impact of the strong dollar wears off, he added. The company also doesn't need to raise any equity at this point, which is a positive.
Brian Kelly, founder of Brian Kelly Capital, said Tesla's production is lower due to the efficiency of the assembly process, not because of weak demand. That actually bodes well for the bulls. He said to use a stop-loss around $260. For those not long, he's a buyer around $230.
On the flip side, Keurig Green Mountain does have a demand problem, Kelly pointed out. The stock plunged 28% in after-hours trading following the company's horrendous guidance. Investors should completely avoid this stock, Kelly said.
Shares weren't priced for perfection, but they were priced for good growth -- growth that's clearly not happening, said Karen Finerman, president of Metropolitan Capital Advisors. It's too hard to value the stock and it's not time for investors to buy, she added.
Fitbit made for an interesting after-hours trade. Initially shares soared 10% after the company handily beat EPS and revenue estimates, the latter of which grew a whopping 250% year-over-year. But then the stock quickly reversed, falling 14.5% after there was some confusion on whether the company's EPS figures were comparable to that of analysts.
Grasso wasn't too worried about the report. He's long the stock and said the after-hours price action simply indicates that investors are taking profits. At some point, this high growth stock will be a buy, but it's not at $46, Adami added.
The conversation turned to Disney (DIS) - Get Report after the stock dropped 9.2% in Wednesday's trading. Investors are concerned about the company's cable TV business, mainly ESPN, losing market share as mobile viewing and streaming platforms like Netflix (NFLX) - Get Report gain in popularity.
Rich Greenfield, an analyst at BTIG, is bullish on Netflix, saying investors have every right to be nervous about the traditional media companies. Ad revenue continue to flow away from traditional media outlets as consumers move towards other platforms. It doesn't help that media companies continue to license their content to companies like Netflix, which only drives more consumers away from traditional services and to new platforms.
An enormous amount of Disney's profits -- roughly half -- come from ESPN, Adami pointed out. So Wednesday's selloff was more than justified. CBS Corp. (CBS) - Get Report also reported not-so-hot results. This just underscores why investors should be long Netflix, he added.
This seems like it could be the beginning of a long-term trend, Finerman said. She's long Disney but not looking to add to it just yet.
For their final trades, Grasso is buying Micron (MU) - Get Report and Kelly is a buyer of the CBOE Volatility Index I:VIX. Finerman said to buy TerraForm Global (GLBL) and Adami is buying Northrop Grumman (NOC) - Get Report.