As Facebook soars, here's what traders are watching for when Amazon reports after the bell

Facebook soared on Thursday after a blowout earnings report, and now investors are eyeing another big FANG name reporting after the bell: Amazon.

Shares of Facebook were up 11 percent Thursday morning, sending the ripple effect to Amazon, Netflix and Alphabet, which were all higher by around 2 percent.

That move points toward a hint of positive sentiment ahead of Amazon's report, and if the retail giant beats expectations by a margin similar to Facebook, the stock could soar.

"[The options market] is implying a move of about $95 in either direction. That's about 5 and a half percent. On average, over the last four quarters, the stock has moved about 3.75 percent," said Dan Nathan of Risk Reversal Advisors on CNBC's "Fast Money" Wednesday.

But will that above-average move be to the upside? Most analysts seem to think so.

According to FactSet, of the 51 analysts that cover Amazon, the average rating is a buy with a price target of $2,138.48. That's more than 25 percent higher than where the stock was trading on Thursday.

However, as Nathan pointed out, Amazon's recent history hasn't been particularly encouraging.

"Obviously, last October, they guided revenues down below consensus and the stock had a big down day," noted Nathan.

"[The stock] is banging up right against that downtrend that's been in place over the last three or four months since that earnings disappointment in October — big level here. If they guide down again, it gets rejected at that line and it's going lower."

Amazon shares are up more than 13 percent this year.

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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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