How to trade big tech in choppy market

After technology stocks helped a choppy market rise Tuesday, “Fast Money” traders debated whether some growth names were worth their cost.

The major U.S. averages closed the session higher, recovering from a lower open after Fed Chair Janet Yellen took a cautious tone on policy in an afternoon speech. Facebook, Microsoft and Netflix shares rose more than 2 percent each on the day.

After the gains, some traders wondered whether the stocks were too expensive, a worry many observers have expressed in recent months.

“This is a ridiculous multiple and a lot of competition,” trader Tim Seymour said of Netflix, whose shares have soared 75 percent in the last year.

While they have not climbed as much as Netflix, Facebook and Microsoft have also enjoyed strong runs in the last year. Facebook and Microsoft shares are up 39 and 33 percent, respectively.

Seymour contended investors have shelled out more for those and other popular tech stocks because of recent results.

“People are willing to pay a high-growth multiple for a company that has been delivering,” he said.

Trader Pete Najarian said the stocks could have more upside. He highlighted the growth of Facebook’s Instagram and touted the leadership of Microsoft CEO Satya Nadella.

Trader Brian Kelly, though, warned that Facebook shares may not fare well if volatility takes hold of stock markets. He said he would prefer to buy Microsoft, as it has a “nice dividend,” and stray from Facebook.