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The big question going into Facebook Inc.'s (FB) - Get Facebook, Inc. Class A Report earnings was whether Instagram's stories product would show that it's making money.

The answer is mainly no, and it will be a while before that changes.

Facebook shares rose 4.6% on Wednesday to about $153 as yesterday's earnings report encouraged investors about Instagram's ability t make more money. The trouble now is that Instagram stories don't command ad rates as high as ads on Facebook's news feed.

"These ads {story ads} currently monetize at lower rates compared to feed ads {news feed ads}," CEO Mark Zuckerberg told analysts on Facebook's earnings conference call. While a Goldman Sachs note from analyst Heather Bellini before the earnings release said "We also see improved ad load and monetization of Instagram stories," it's pricing that remains top of mind when it comes to monetization of stories. "The impression growth opportunity is significant on Stories. Pricing will take time," Facebook Chief Financial Officer David Wehner said. 

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Facebook is focused on making the advertising model somewhat akin to an e-commerce experience for the user, which Chief Operating Officer Sheryl Sandberg pointed out on the earnings call. They are trying to get users to click-through on ads, resulting in purchases that give an advertiser a good return on investment {ROI}. When Facebook cracks the code on the stories advertising model, advertisers will see that ROI, and Facebook will be able to leverage solid ad pricing. "It's really just the pricing," Zev Fima, research analyst for Jim Cramer's Action Alert Plus Portfolio told TheStreet. He added, "Good ROI? The pricing power might coming later down the line." 

For now, Facebook has to figure out how it will create its story ads platform. "It's not a slam dunk -- they're trying to figure it out," Maz Jadallah, founder and CEO of AlphaClone, an ETF firm aiming for above market returns, told TheStreet. The road to completing that ad platform "depends on the tools Facebook builds for advertisers and their ability to target people without giving up privacy," Jadallah said. Analyst at Pivotal Research group, Brian Wieser agrees. "Figuring out what the optimal ad products are is the thing that takes time to figure out," Wieser told TheStreet. He added, "what that is specifically doesn't exist yet." 

Instagram user growth is strong compared with rival Snap Inc. Instagram stories reached 400 million daily active users in September, bettering Snap's   (SNAP) - Get Snap, Inc. Class A Report  count of 186 million daily active users in September. Snap actually saw a quarter-over-quarter decline in usership, much of which is attributable to the dominance of Instagram stories. Facebook has reached users in a unique way with stories at this point. Now it has to reach advertisers on the stories. "Advertisers don't yet know how to use the new platform," Fima said. 

Facebook shares have returned to the $150 per share level as a result of what it has now revealed, which is partly related to the fact that management said that 2019 will be the last of the heavy cost increases related to security and privacy. The stock had been down almost 20% on the year before the earnings print. It's now down only 14% on the year. 

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