"I've talked with investors and they've been grumpy -- things were getting a bit frothy right up to the Facebook IPO," said Canaccord Genuity analyst Richard Davis.

Meanwhile, a lot went wrong with the Facebook IPO itself, starting with how the offering was put together. Facebook picked a half-dozen high-profile investment bankers, led by Morgan Stanley, to see the offering through.

"What if putting way too many banks on a cover, thereby slicing fees to insulting levels for everyone, simply makes nobody interested or accountable?" asked Davis. "I've said it before, and even if it hacks off issuers, boards, or whatever -- it is just plain stupid to do IPOs with so many banks on the cover."

The underwriters at the last minute increased the size of the offering and jacked up the offering price to an astronomical value, compared to what the company actually earns.

Even based on the value of Facebook shares a week after the IPO, down about $7.00 from the initial asking price, the company's price-to-earnings ratio is 72.20. In other words, it costs about 72 times the amount that Facebook is earning per share to buy that share. Apple, arguably the most successful company on the planet right now, has a P/E ratio of only 13.68. (Facebook's earnings per share are $0.43, while Apple's are $41.04).