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Facebook has bad news for the markets, traders say

The "Fast Money" traders debated whether the momentum rally in technology stocks is over after Facebook's tepid outlook.

CFO David Wehner said that ad load could come down meaningfully in 2017. The stock fell 5 percent in extended trading.

The danger with crowded stocks like Facebook is that if momentum moves towards the downside, sell-offs can pick up steam quickly, "regardless of the fundamentals," trader Brian Kelly said.

The momentum in technology stocks isn't over, but trader Guy Adami said that there's a "very good chance" that the S&P 500 retests levels near 2,043. On Wednesday, the index saw its seventh-straight negative session, closing at 2,097.94.

Trader Tim Seymour said that investors who want to be in tech should pick the value stocks like Google parent Alphabet and Apple over growth stocks like Amazon, Netflix and Facebook.

Disclosures:

TIM SEYMOUR

Tim Seymour is long ABX, APC, AVP, BAC, BBRY, CLF, CVX, DO, DVYE, EDC, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD,MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, T, TWTR, VALE, VZ, XOM, short: SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM.

BRIAN KELLY

Brian Kelly is long Bitcoin, SLV and silver futures, US dollar UUP. He is short the Japanese yen.

DAN NATHAN

Dan Nathan is long TWTR, long XHB Jan put spread, long XLU Dec call Spread, long XLK Jan put spread, long XRT Jan put spread, long PG Dec put spread, long EEM Nov put spread.

GUY ADAMI

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