Here's Where Facebook Needs To Grow

Scott Kessler of S&P Global Market Intelligence was a recent guest on CNBC to discuss Facebook Inc FB's upcoming earnings print.

Kessler said he expects Facebook to deliver 49 percent revenue growth in the quarter and it is "important" for the company to show investors it can continue growing at a large pace.

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Moving on to Instagram, Kessler pointed out that Facebook doesn't break down its revenue by business segment. However, he said management is likely to devote a lot of time during its post-earnings conference call to discuss some of the innovations, new client wins and initiatives to maintain Instagram's growth profile.

Finally, Kessler discussed Facebook's 10-year outlook which includes initiatives in artificial intelligence and drones. The analyst said at this point it is "hard to understand" how these initiatives will contribute in the near to intermediate term growth.

On the other hand, Kessler said there is a visible "trajectory" for Oculus Rift and it will be a "viable and vibrant" business in three to five years.