Social media heavyweights Facebook and Twitter provide good opportunities for investors going forward, Scott Kessler, S&P Capital IQ's head of tech equity research, told CNBC on Wednesday, before Facebook reported fourth-quarter earnings.
"They're making these investments because they can, not because they need to," said Kessler. "I think if Facebook is able to continue to deliver revenue growth and healthy margins, the investing public will be more than satisfied."
The social networking giant reported quarterly earnings and revenue that surpassed analysts' expectations. It posted earnings of 54 cents per share, up from 31 cents a share a year earlier. Revenue increased to $3.85 billion from $2.59 billion.
Facebook is up more than 40 percent over the past 12 months but may be affected by the strong dollar in the current quarter. The company has significant business in Europe and Canada, which could hurt revenue.