Steer clear of Facebook on IPO: Analyst

But, should investors line up to get piece of the action when the company first goes public? Anupam Palit, senior managing analyst at Greencrest Capital, says no.

"We would actually recommend investors step aside and wait for valuations to come back to earth before stepping into the stock," he says.

Palit argues that investors with a long-term outlook should consider buying shares, but says they should wait until the initial stampede subsides.

"It has a lot of compelling long-term value…it has a lot of revenue and it is profitable, which makes it very unique among a lot of the tech IPOs we have seen. And I do think it will grow fast," he says. "What we like about the Facebook story is that they continue to invest in their platform, so they're not just taking their overall number of users, maintaining a static website and trying to sell advertising -- they are trying to increase the overall service offering."

But, he warns that Facebook has been slow to adapt to the mobile space, saying the company gets little revenue from its mobile platform. And he says it has a limited time frame to exert its dominance in the mobile space.

"When thinking about a window, it's not years, it's months," he says.