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.
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