Social media giant Facebook reported bumper earnings growth on Wednesday, but some analysts have called into question how long the party will last.
Facebook's stock climbed to an all-time high of $71.29 per share after second quarter earnings substantially beat estimates late Wednesday. The firm posted earnings of 42 cents a share, excluding one-time items, on revenue of $2.91 billion, a growth of 61 percent from the same quarter last year, and generating a profit of $791 million, up from $333 million a year ago.
The firm's active advertising customers had surged to 1.5 million from 1 million last June. Revenue from advertising reached $2.68 billion, a 67 percent increase from the same quarter in 2013, while mobile advertising accounted for 62 percent of advertising revenue for the quarter, up 30 percent from last year.
"My question is this: with half the world of the internet population already using Facebook; how realistic is it to expect this to continue? I would say that growth is going to slow, that is inevitable," Charles Sizemore, CIO at Sizemore Capital Management, told CNBC Asia's "The Rundown" on Wednesday.
"At this point, it's a question of: are you betting on the horse or the jockey? If you're betting on the horse you are betting that the advertising model is going to work as it continued to work; if you are betting on the jockey, you are betting on [Facebook's CEO Mark] Zuckerberg and his ability to invest in the next big thing. Ninety times earnings and 22 times sales, that's a pretty big bet," he added.
The social media giant has seen exponential growth since it was first launched in 2006, and its stock has risen 87 percent since the firm's listing on Wall Street in May 2012 for $38 per share.