Facebook's stock may have taken a hit on news that the social giant is launching a new search feature, but the social giant is actually poised to cash in on the search market, Lou Kerner, managing director for the Social Internet Fund, said Tuesday on CNBC's "Closing Bell."
(Read More: Facebook Rolls Out Social Search Feature )
"Mark Zuckerberg is a slave to data, he sees what people do and then he iterates and he iterates and he iterates. Search is the holy grail of internet advertising, Facebook is going to make a lot of money," Kerner said. "The market has continued to underestimate Facebook, they underestimated that it was ever going to make any advertising revenue and then they underestimated that it was going to make mobile ad revenue, now they are underestimating search revenue."
Facebook's new search function, which launched in beta on Tuesday, is called Graph Search and allows users to search information on the Facebook platform that has already been shared with them.