Tim Seymour, managing partner of Triogem Asset Management, said when he first invested in Nike a few years ago the valuation was much lower. However, investors who are long should stick with Nike since the company continues to deliver, he said on CNBC's "Fast Money" TV show.
The stock just a hit a 15-year high in valuation, added Dan Nathan, co-founder and editor of riskreversal.com. Now might be a good time to start thinking about taking some profits. Nike's success with women's apparel could ultimately come at the expense of Lululemon Athletica (LULU).
It could also hurt Gap's (GPS) Athleta brand as well, said Brian Kelly, founder of Brian Kelly Capital. "I don't think you have to go out and buy Nike tomorrow," he added, saying he likes Under Armour (UA) more.
Guy Adami, managing director of stockmonster.com, said there is concern about valuation when it comes to Nike. However, the company's pricing power is strong and gross margins continue to expand. As a result, investors should stay long Nike.
Corinna Freedman, senior vice president at BB&T Capital Markets, says there's nothing concerning in Nike's recent report. However, she prefers Under Armour over Nike because it has more growth. In any regard, the secular trend in athletics is clear, something that should benefit Fitbit (FIT) as well.
Micron (MU) also reported earnings but the stock dropped 12% after the company provided fourth-quarter revenue guidance of $3.5 billion to $3.7 billion. Analysts were looking for roughly $4.2 billion.
That's "really awful" guidance, Adami said. Investors should wait for the stock to decline to $20. If the stock stays above that level, then investors can buy the stock.
Despite most of the chip space being under pressure, investors can buy Intel (INTC), which has a compelling valuation and diversified businesses, Seymour said. Nathan disagreed, saying Intel is likely headed to $30.