NEW YORK (TheStreet) --Facebook (FB) reported 2016 third-quarter financial results after the market close on Wednesday, beating Wall Street's expectations. The social media giant posted earnings of $1.09 per share on revenue of $7.01 billion. Analysts' were projecting earnings of 97 cents per share on revenue of $6.93 billion.

Despite the third-quarter beat, Nomura senior media and Internet analyst Anthony DiClemente believes it could be getting tougher to get excited about Facebook.

"They are going from static images in your Facebook feed to video and that requires a tremendous pivot in terms of the infrastructure of the organization, and the sales organization," DiClemente said during Thursday morning's "Squawk Box" on CNBC.

He noted that it's harder to get excited about Facebook as they go through this transitional period while failing to forecast earnings revisions upwards. 

"I think right now it's wise to look at earnings revisions. If I look at the big Internet companies and what they have reported, I want to look at estimates for next year," DiClemente stated.

Regarding Facebook stock, DiClemente currently has a "buy" rating on it with a $155 price target.

"I think it's a huge secular winner, they continue to take ad budgets from traditional media and nothing was bad about the quarter, they beat every estimate, it's just from here is there acceleration and do they beat estimates?" he asked.

(Facebook stock is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of Cramer's holdings with a free trial.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

The team rates Facebook as a Buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. The team feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: FB

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