It's time to add to Facebook positions: Analyst

Cantor Fitzgerald analyst Youssef Squali likes Facebook despite the 8 percent year-to-date dip in its stock price.

Facebook releases fourth quarter results after the bell Wednesday, and Squali said investors should treat a positive reaction to earnings as a buying signal. The social network giant looks primed to dominate the mobile ad market the same way Google dominates mobile search, he said in an interview with CNBC's "Tech Bet."

Read MoreWhy Facebook's earnings won't just be about Facebook

"We think for investors that are looking to own this asset for the next six to 12 months, this is a good time to buy," Squali said.

Squali said Facebook remains the leader in monetizing social networks, and investors will be on the lookout for any news about ad revenue from its photo sharing network Instagram.

"The monetization of Instagram has just started a couple of quarters ago but the ramp there has been pretty steep," Squali said. He added that though revenue from Instagram may seem small compared to other money makers, "it's large enough to start moving the needle for the company."

Disclosure: Squali does not own shares of Facebook.