The CEO was repeatedly asked about the ongoing rumors that the company is building a phone and every time, he pushed it aside. "That's always been the wrong strategy for us," he said. "We'll have 950 million users soon. Let's say we built a phone, theoretically -- we're not -- but we get 10 million people to use it. That doesn't move the needle for us... The phone just doesn't make any sense."

What does Zuckerberg see as a good strategy down the road?

Search.

That's right. When asked about his interest in getting into search and how much Google's entrance into the world of social networking annoyed him, Zuckerberg didn't pull many punches. "We do on the order of a billion queries a day now and we're not even trying," he quipped. "I think there's a lot of opportunity there and we'll have to someday go after that."

Zuckerberg said he didn't have anything specific to announce about search right now but it would be an obvious thing for the company to do I the future.