NEW YORK (TheStreet) -- The highly anticipated IPO of social networking giant Facebook (FB) forever changed the landscape of its market. But it became immediately legendary for the wrong reasons: the run-up was filled with hype and the IPO itself was mishandled by most of the involved parties, including Nasdaq, leaving small investors feeling shut-out and even ripped off.The attempt will forever be a black eye for the stock, which continues to be one of the most polarizing tickers to follow as it attracts even more intrigue and controversy. However, on Thursday, the company had an opportunity to put to rest some of these concerns by demonstrating in its second-quarter earnings report that its fundamentals in order and it deserves to be mentioned among the ranks of the elite or other tech giants such as Apple ( AAPL), Google ( GOOG) and Amazon ( AMZN). But it just couldn't -- at least not well enough to avert further valuation concerns.
So now what will be the company's next move? I wish Facebook would have offered something to help investors navigate through this disappointment -- it didn't do that either. Its outlook for the rest of the year is left up to best guesses. That is more reason for concern than anything else. It means either the company does not know or it does not care to help mitigate what has been a turbulent first trading quarter with investors. I'm not sure yet which I think would be worse. On the positive side, the company continues to grow its user base as that number reached 955 million active users as of June 30 -- representing an annual increase of 29%. But that means very little if Facebook is unable to get them to spend. The company had warned investors of this situation -- even stating that analysts' expectations were too high. But investors were still hoping for the best. On this day, it just wasn't meant to be.