Facebook is inching closer to a $300 billion valuation, only 3 1/2 years since it went public. Its stock had languished below the IPO price of $38 per share for more than a year but has since rallied. Shares of Facebook have surged nearly 38 percent in the last 12 months.
"At this multiple, they're going to have to continue to put up above 32 to 33 percent year-over-year revenue growth. I think if they continue to do that, the EPS numbers basically don't matter for the foreseeable future," Leigh Drogen, CEO of financial estimates platform Estimize, told CNBC.
Last quarter, the social networking giant said it would increase investments in areas such as Messenger, WhatsApp and Oculus to boost advertising revenue from mobile and drive future growth.
Total non-GAAP expenses rose 51 percent to $2.09 billion in the third quarter.
Earlier this week, Facebook said it was testing an artificial intelligence (AI) feature that will allow it to answer questions about a photo, a feature aimed at helping blind people "see" images uploaded to the social network.
The company has been pushing hard to develop its AI capabilities — alongside Apple and Google — with the technology being seen as key for the future of these companies. Earlier this year, Facebook unveiled a technology called "Memory Networks," which allows a machine to perform sophisticated questioning and answering.
— CNBC's Julia Boorstin, Harriet Taylor, Arjun Kharpal and Reuters contributed to this report.