Separately, Needham & Co. analyst Laura Martin today initiated coverage of Facebook and recommended buying the stock.
The company's earnings growth will track the amount of time users spend on its site, according to Martin. About 14 percent of time Internet users spend online is on Facebook, indicating that its global potential revenue is about $14 billion, she wrote in a research note published today.
The increase in its operating margins -- to 47.3 percent of sales in 2011 -- suggests that its profit will grow faster than revenue, she wrote. Martin estimates the stock will rise to $40.
'Hoodie Man'
Pachter reiterated his criticism of Facebook Chief Executive Officer Mark Zuckerberg's clothing choices, saying the 28-year-old's signature hooded sweatshirt, or hoodie, doesn't show respect for advertising-decision makers and Wall Street.
"When he turns up in a hoodie he's saying: I don't care about you, I care about my users," Pachter said. "If the users were the people that pay Facebook, then investors and the hoodie-man would be entirely aligned."