Another day of gains for markets Wednesday failed to convince some "Fast Money" traders that momentum stocks will rebound.
Major U.S. averages closed the day slightly higher, following gains of more than 2 percent each on Tuesday. Stocks have started to stabilize following a rocky start to the year.
Investors should hesitate to buy Amazon now due to its valuation, argued trader Brian Kelly. Amazon Web Services — one of its growth engines — could face increased competition, he said.
"There's absolutely no way in this envrionment that you should be out tomorrow buying it," Kelly said.
Trader Guy Adami agreed, saying the stock is in "no man's land."
Netflix shares have been "meandering" around $95 this year, and the company needs to "prove itself" in its first-quarter results for the stock to rise again, Adami contended. Netflix closed Wednesday above $97 per share.
But if Netflix can "execute," particularly on international expansion, its shares could rise above $110, argued trader Pete Najarian.
Tesla Motors shares rebounded Wednesday, a day after they fell as short-seller Citron Research revealed a position in the electric automaker. The stock closed up about 1 percent, above $188 per share.
Kelly was skeptical about Citron's rationale for shorting Tesla, as the firm's executive editor Andrew Left outlined a less-specific case than he has for other positions. He contended that Tesla is worth owning long-term, but not until it pulls back closer to $120 per share.
Trader Steve Grasso also argued that the stock does not look appealing at its current price.
Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.
Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long CXO, OXY, BP, CVX, RIG, FCX, AMZN kids own EFA, EFG, EWJ, IJR, SPY
Brian Kelly is long BBRY, Bitcoin, GLD, SLV, TLT, US Dollar, Yen; he is short Aussie Dollar, BLK, British Pound, CS, DB, Euro, EWH, FRC, Hong Kong Dollar, UBS, SPY, Yuan, 5-Year Note Futures
Long AAPL, BAC, BMY, DIS, DISCA, GE, KMI, KMI-A, KO, MRK, PEP, PFE, SAVE, VIAB, he is long calls AAL, AMJ, BAC, BHP, DAL, EMR, FDX, GDX, GE, HAIN, HBAN, LC, MDLZ, MPZ, NRF, POT, RHT, SLV, SWN, UAL, USG, WMB, WPX, WYNN, ZIOP, he is long puts DB, EWH, RIG, VLO.