NEW YORK (TheStreet) -- Advertising might have made up more than 94% of Facebook's (FB) - Get Report total second-quarter revenue according to Wednesday's earnings report, but some analysts believe the best is yet to come for the social networking company.

Overall, Facebook generated $4 billion in revenue in the second quarter, with $3.8 billion of that coming from advertising, and earnings of 50 cents per share. The company also reported a 17% year-over-year increase in daily active users to 968 million from 829 million.

Facebook was expected to generate just under $4 billion in revenues for the quarter, with predicted earnings of 47 cents per share, according to analysts surveyed by Thomson Reuters.

Shares of Facebook were down 2.6% in premarket trading Thursday to $94.44.

"Despite the global growth of Facebook and the statistic that 50% of the online world is regularly logging in, we have still not reached 'Peak Facebook,'" wrote IHS Technology analyst Eleni Marouli.

She added that the company's mantra "bring the audience in and the revenue will come" has been successful so far. Marouli said Facebook still needs to work on monetizing its product globally, citing the fact that "some 74% of revenue comes from North America and Europe, and only 35% of the audience is located there."

With global online advertising projected to jump to $137 billion in 2015, Facebook stands to gain both in user base and revenues, particularly in Europe, according to IHS Technology analysts.

The Menlo Park, Calif.-based company reported 311 million monthly active users in Europe alone Wednesday, but said the region is generating just $1 billion in revenues. However, by 2018, Facebook and Google (GOOGL) - Get Report are expected to account for 67% of the online display advertising market in Europe, according to IHS Technology analysts.

Take a look at IHS Technology's infographic below to get a better idea:

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Wall Street analysts were similarly optimistic about Facebook's potential success, with many looking to Instagram and WhatsApp as the company's future for strong monetization.

Here's what some of them are saying:

RBC analyst Mark Mahaney (Outperform, $105 PT)

"Facebook reported Modest Beat Q2 results, with Revenue 1% above the Street and EBITDA/EPS 5%/6% above the Street. We had expected more upside, but the intrinsic fundamentals remain very strong - 55% ex-FX Ad Revenue growth & 55% Operating margins. Extremely rare."

Cantor Fitzgerald analyst Youssef Squali (Buy, $105 PT)

"Our BUY rating is based on 1) FB's position as the largest/most-engaging Internet platform, offering personalized marketing at scale, 2) the on-going shift of ad dollars to mobile/social and 3) a massive video opportunity, all of which we believe translates into material market share gain. Untapped monetization potential for Instagram, Messenger, and WhatsApp also provide a compelling valuation case, in our view."

JMP Securities analyst Ronald Josey (Market outperform, $105 PT)

"Despite better results overall, shares traded down 3.33% in the aftermarket to $93.76 given lower advertising revenue growth relative to some expectations and since shares reached a low on July 8, they have gained 13% (vs. 3% for the S&P 500). We would take advantage of any weakness. We are impressed with Facebook's 55% Y/Y ex-FX advertising revenue growth and we see multiple catalysts going forward: 1) investments in video, targeting, and measurement are attracting greater advertising demand; 2) Instagram monetization is ramping; 3) lower than expected operating expense growth for this year; and 4) longer-term catalysts around WhatsApp and Oculus."

SunTrust analyst Robert Peck (Buy, $125 PT)

"1) Ad revenue growth should continue to decelerate and FX headwind should remain for 3Q and potentially 4Q; 2) Instagram MAUs weren't updated (though current willingness to engage with ads is a positive); and 3) expectations remain high - investors may overestimate the timing of adoption and success new products (like Instagram and video). Management stated it will be very cautious with the Instagram roll out."

Deutsche Bank analyst Ross Sandler (Buy, $115 PT)

"Facebook continues to innovate on new ad units such as Lead Ads and Book Now that are showing strong uptake, further, the improved targeting from custom audiences and DPA are paying dividends in higher advertiser ROI. The company did not provide an update on video views per day in 2Q but noted strong demand for video ads."

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.