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Despite its recent pullback, one social media stock tops everything else out there, Dan Niles, senior portfolio manager at AlphaOne said Thursday on CNBC.

That stock is Facebook. Niles said that he thought sellers of Facebook would look back and think, "You know, we shouldn't have sold this. It's going down with everything else," he said. "The easiest way to think about it is: They're going to develop another billion-dollar business in video advertising. They make about $100 million today. That's going to ramp up over the course of this year. I think it's going to be as big for them as mobile is. That's my favorite stock, bar none, right now."

Facebook stock has declined from around $67 per share last Friday to below $59 on Thursday, along with other online names such as Google and Amazon.com.

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