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How to trade virtual reality technology

Facebook does not report earnings until next month, but "Fast Money" traders had an eye on one of its newer segments Friday.

Oculus VR, the virtual reality company that Facebook bought last year, releases its first consumer headset early next year. For some traders, the social media giant is the best way to invest in the emerging technology.

Virtual reality will not make or break Facebook's earnings soon, but could provide a significant boost long term, said trader Josh Brown.

"It could be tremendous and even if it's not it's really not in the earnings estimates so it's all pure upside," he said Friday.

The new Oculus Touch input device for the Rift virtual reality headset.
Oculus
The new Oculus Touch input device for the Rift virtual reality headset.

Trader Guy Adami agreed, adding Facebook will "figure this out." While he isn't ecstatic about virtual reality, trader Tim Seymour noted he would own Facebook stock for its reach of nearly 1.5 billion monthly active users.

"Facebook is a stock to own for the long-term," he said.

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While he called virtual reality "difficult to invest in," trader Brian Kelly looked to Nvidia, which makes graphics processing chips for the devices. The stock has jumped 39 percent this year, so he would look to buy it on weakness.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JPM, KO, LGF, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.

Josh Brown

Long AAPL, BABA, DE, DNKN, EBAY, FB, JMBA, NFLX, PYPL, SAM, SHAK, SPWR, TWTR, XLE, XON.

Brian Kelly

Brian Kelly is long BBRY, GLD, Bitcoin, Silver, US Dollar; he is short Yuan, British Pound, Crude Oil, Euro, Yen, EEM, EWC, EWU, EWG, SPY

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.