What Went Wrong with Facebook's IPO?

The following video is part of our "Motley Fool Conversations" series, in which technology and media editor/analyst Andrew Tonner and technology editor/analyst Brenton Flynn discuss topics across the investing world.

If you judge Facebook's IPO purely by its returns, it's ugly. However, the steady stream of news detailing the abject failures of several key parties has helped tank the stock price and is sending investors to sell shares -- and more potential drama is still likely to unfold. Facebook's recent pullback also opens up some interesting questions: Is it a more attractive buy at these lower prices? When should investors start looking at the social networking powerhouse, if not now? How serious are some of the apparent cracks in Facebook's business model? Our technology editor sits down to discuss who's to blame for the weaker-than-expected IPO and where Facebook should go from here.

Facebook recently became the largest company ever to go public. Yet all the buzz around this social media monster could prove off-base, as Facebook has deep problems converting its millions of members into revenue. We've created a new report, "Forget Facebook -- Here's the Tech IPO You Should Be Buying" that details a much better social media stock that has a longer runway for growth than Facebook. The report won't be available forever, so click here to get access today -- it's totally free.

At the time this article was published Andrew TonnerandBrenton Flynnhave no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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