Despite ad growth concerns, 'everything is moving in the right direction' for Facebook

Key Points
  • Analyst Victor Anthony isn't worried about Facebook's future ad revenue growth.
  • "Everything is moving in the right direction," he says.
  • On Wednesday, Facebook reported Q1 earnings that smashed analysts' expectations.
Facebook's ad biz spurs earnings beat

Despite worries about ad growth, Facebook is moving in the right direction, Aegis Capital internet analyst Victor Anthony told CNBC on Thursday.

In an interview on "Squawk Box," Anthony said Facebook has had the longest streak of quarterly outperformance of any company he's covered in the past 10 years.

"Fifty percent advertising revenue growth. Against that scale, it will probably do about $39 billion in revenues this year. They're buying back stock. Engagement is up. Monthly active users is up 17 percent," Anthony said on "Squawk Box." "Everything is moving in the right direction for this company."

The comment came a day after Facebook reported first-quarter earnings that smashed analysts' expectations, adding 80 million monthly users in the first few months of the year, as ad revenue popped 51 percent from a year ago.

The social media giant makes most of its money by connecting advertisers to its massive user base. The company earned $7.86 billion in advertising revenue in the quarter, above the $7.68 billion expected by a StreetAccount estimate.

Still, Facebook's shares took a dip in after-hours trade on Wednesday after investors worried about future earnings as it searches for new types of advertising features. Wall Street analysts expect Facebook's full-year revenue growth to slow next year.

Facebook also reported last month that Instagram Stories now has 200 million daily active users, up from the 150 million announced in January, beating competitor Snapchat's reported active user numbers. Facebook acquired Instagram in 2012 for $1 billion.

"Instagram has been a home run for them in terms acquisition," Anthony said. "The free cash flow, that was up."

—CNBC's Anita Balakrishnan contributed to this report.