NEW YORK (TheStreet) -- It never ceases to amaze me to see just how spoiled and childish Wall Street can be sometimes. Complaints are quickly filed and fingers get pointed whenever a seemingly guaranteed instant gratification fails to deliver. My article Tuesday on social media giant Facebook (FB) was not "liked" by investors who are now left holding the Facebook bag after buying at the top range of an IPO that was once billed as a promising pay day.
There is no question that Facebook has all of the makings of a successful company -- one that can certainly grow into its valuation and produce the type of earnings to justify its IPO hype. However, to what extent? This is the part that Wall Street still has not figured out. Disappointingly, investors wanted to re-live the pre-tech bubble IPO days where everything soared 50% on their first day of trading and valuation metrics were only for geeks -- while forgetting the operative word: "bubble." I think eventually the company will prove that it was more than just a fad, but it has to first prove that in addition to being a good idea, it has a better underlying business. As it stands even with the company's popularity, it is still looking up to search giant Google ( GOOG) in the rankings among the most widely visited Web sites in the world. While Facebook comes in a close second, I am beginning to wonder what else does that ranking imply? Facebook also lags Google in several other categories -- specifically in terms of business fundamentals. A recent report suggested that 15% of all Web surfing time was on social networking sites where Facebook clearly dominates. So although it is now second, there is reason to suspect that it won't be long before it takes over the top spot.
Bottom Line There are many lessons that continue to be learned from this IPO. Clearly there have been some mistakes, but the most egregious error was the "larger-than-life" persona sold by the media, the company and its underwriters. To put it plainly, the whole event was a circus that proved the tent was 100-times too big for the animals that were there to perform -- and on top of that the performance was unimpressive. Be that as it may, as the stock remains above $30, I don't think I can afford it just yet. But as it continues to inch closer to the $25 level, I think I might just "like" it then.