coming up on "power lunch," tim draper live at 1:00 p.m. just a couple seconds. simon baker, final trade. >> las vegas suns economy recovering bet on this stock going much, much higher. >> you can find me and "power lunch" starts right now. three hours to go in the trading day and we are in the middle of the biggest rally since january 3rd. never mind that was three weeks ago, but we'll take it whatever kind of rally you can get. economic data in the u.s. not bad, but not great by any means. manufacturing numbers from europe and china are better. the dow aiming for its best close in ten months. nasdaq at a 10-year high. can the bulls hang tough? >> well, they're waiting on facebook. the social network set to file its huge ipo offering. where is their next big money-making opportunities? and why aren't they sharing that stock with their users? >> and game on for electronic arts. the stock down 10% year-to-date fielding the heat from facebook

and online competition. we'll take a look at ea's investment game. >> i'm sue herera along with tyler mathisen and brian shactman. and "power lunch" begins right now. always got to pull out early to get to the wall in time. we could be looking at the first triple-digit gains as tyler said january 3rd, the first trading session of the year. financials higher. $1.33 to the upside. s&p more than 1.25% for the nasdaq. the pulse of the markets, euro bouncing back, the yield on the u.s. 10-year finally moving a little bit. 1.84%. wow, we're still far from 2. but nat gas continuing to sink almost another 4%. midday movers start with whirlpool, a big profits up. solid gains for that company.

16.3%. and broad com up almost 9%. hiking the dividend giving cash back to shareholders. and fm petroleum to the upside. launching a $2 billion share buyback. other movers we're watching, obviously amazon getting hit hard. light revenue, weaker guidance. that stock down 8%. a big move for amz. and seagate, 22% earnings and revenue above estimates and cocoa is coo coo. back in the black giving strong guidance up 32.5%. but the man with the nuance, with all the details, bob pisani at the nyse. >> thank you, brian. for weeks we've had the same headlines on greece. now we have a new headline. greek finance official says a deal is only hours away. well, good heavens, all the banks are up. on somewhat better economic

news. not great news, but there's ubi which is in italy, ing which is the netherlands, barclays, deutsche bank, all up about 5%. the good news about today is our markets are moving on news somewhat independently of europe, that makes my heart sing, believe me. we have techs 10-year high in the s&p tech index. i know it's nothing like it was in 2000. it's half of what it was, but the technology index sitting at a 10-year high. i think that's significant on great numbers today. we had great numbers from broad com yesterday. chip sector doing well. great numbers from sea gate and western digital up on that as well. finally, just want to note financials. financials the second biggest component in the s&p. 14%. that's leading the market. so techs and financials always a good sign. finally, even the building stocks are up. whirlpool had very good numbers. and very strong guidance. sue, back to you. >> we'll take it. thank you very much, bob. all right. let's switch on the "power lunch" power surge and get more

on the stories that are driving the day. the street expecting facebook to file papers for its highly anticipated ipo today. julia boorstin joins us from the social network's headquarters, what are you hearing, julia? >> well, sue, sources tell us that facebook is in the process of finalizing its documents for the s.e.c. right now. i was just inside facebook's new headquarte headquarters, which are here behind me. seems like business as usual. seems like many of the 2,000 employees based here at this campus are already hard at work. when facebook does eventually file which we think will be some time later today, we can expect ceo mark zuckerberg and coo sheryl sandberg to gather employees to have a talk with them about the big news. i do hear that both of them are expected in the office today. now, the s-1 will answer the big question on whether facebook is as profitable as it is popular. sources tell me the company will report about $1.5 billion in operating income last year on $3.8 billion in revenue, about

90% of which will come from advertising. investors digging through facebook's paperwork will be looking for insight into facebook's advertising potential, which will come from how much time users spend on average and whether they engage with ads. plus, what facebook has planned for the rest of its business, how it will grow its take from facebook credits for everything from social games to music and movies. now, sue, the s-1 document will also reveal how much mark zuckerberg will probably be worth when this company starts trading. webbush securities estimates he's on about 25% of the company which could be worth up to about $25 billion. >> not bad. not bad as all. >> not bad. not bad. >> what would a facebook ipo mean eventually for the hundreds of companies that really rely and use that particular platform? >> well, sue, it seems like it could really be a good thing for companies like zynga, whose social games run on the service

as well as music companies like spotify which gets a lot of play for its music service on the platd form. wedbush analyst tells me he thinks the next big thing for facebook will be revenue from e-commer e-commerce. facebook takes about 30% estimate cut on e-commerce revenues everything from virtual goods for social games line zynga to revenue for music and movies. it would be in facebook's best interest to help the company grow that business and sell more. now, the ipo will give facebook plenty of cash. so it could buy some of those companies that do have services on its platform, but it also means on the flip side that facebook will also have more negotiating power and lots of leverage, which may be worse for those companies. >> indeed. thank you so much, julia. we'll continue to work this story. ty. >> the auto sector shows signs of improvement as the car makers report their january sales today. philip lebeau joins us with the details. phil, december was a pretty dog

on good month. does january stack up? >> it's going to be better than december, at least that's the projection at this point, tyler. you need only look at the big three. all of these numbers are better than expected. yeah. there are declines for gm, ford up 7.4%. but chrysler up 44%. we'll talk more about that in a bit. among some of the foreign brands to report, the number that stands out, vw, 47.9% increase. that is the best january since 1974 for the german automaker here in the u.s. as for chrysler, the sales surge is really across the board. all four brands at chrysler posting double-digit gains in january. the ceo says 2013 is really the key, that's when the new model push will be big here in the united states. by the way, the company posting q-4 profit today. also first profitable year since 2005. but when you look at the auto sales acrossed board, one thing stands out. yeah, the suvs and trucks are selling. there's not a slowdown there,

but we're really seeing an increase in small cars, particularly the compacts. january transaction prices, they dropped slightly from december, but nothing that's too major. finally, let's talk about the chevy volt, gm says the sales clearly impacted by the federal investigation into the battery compartment. 603 volts sold in january compared to more than 1,500 in december. as you take a look at shares of general motors, it's pulled back a bit. still a decent month for gm considering what they went through last year. tyler, back to you. >> from wheels to wings, phil, amr, the parent of the bankrupt american airlines apparently going to cut thousands of jobs. what can you tell us? >> between 10,000 and 15,000 jobs will be cut as part of the reorganization plan. at this moment the ceo of american airlines along with top executives are outlining those cuts to the union leadership. we think that most of the cuts are going to be in areas where they can outsource the work, whether it's the maintenance facility or the crews that come

on and clean the plane. that's likely where most of the cuts are going to be. we'll get a total number as well as a projection on those cuts hopefully within the next hour or two as they continue outlining these job cuts. >> all right. when you get it, let us know. thanks very much. >> we will. >> turn to the housing sector. two big stories making headlines today. we start with president obama and his bold new refinancing plan. he unveiled it late this morning. and diana olick is at the white house. she has the details for us. hi, diana. >> hi, sue. the biggest problem with the new refi plan is it has to go through congress. given details released this morning, most many washington will tell you it's likely to be dead on arrival. the speaker of the house came out this morning blasting the plan even before the president got up to sell it in his speech. they are "responsible borrowers" and would go through fha. the fha is already facing financial trouble due to high delinquencies and foreclosures, but a special fund would be put aside for these loans.

officials put the cost at $5 billion to $10 billion paid for by a bank tax. and that of course is what the republicans don't like. >> to move this part of my plan, we're going to need congress to act. we're going to need congress to act. i hear some murmuring in the audience here. we need them to act. >> yeah, he said it three times. but the question is will they? now, to qualify borrowers need to be current on their loans or no missed payments for the last six months, they have to prove they have a job and a fico score of 580 or above. their loan must also be conforming, that's up to $729,000 and the highest price market so no jumbos. and there are fha insurance fees which some argue put borrowers more under water than they were when they originally started. sue. >> diana, meanwhile in another part of the housing market,

regulators of fannie mae and freddie mac apparently announcing a new initiative which would help turn foreclosed properties into rentals. how's that going to work? >> this is the plan we've been talking about for several weeks getting investors to buy these reos and buy them at bulk discounts. fha is conserve ter announced they will sell pools of various types of assets including rental properties, vacant properties and nonperforming loans, so just the loans on these properties. and focus on the hardest hit areas of course. there are some prequalifications for investors and they set them out there today. the investors have to have the "financial wear with al" to buy, sufficient experience to analyze and bear the risk and agreement to keep certain information about the reo and related matters confidential. that was interesting to me, but sources say that's all about not telling one deal from another so

that the fhfa can get the best price going forward as the market recovers. >> sounds complicated, thank you, diana, very much. >> diana on the white house lawn in the first of february in short sleeves. >> short sleeves. >> there will be no six more weeks of winter. to the campaign trail now. big win last night for the republican hopeful mitt romney crushed newt gingrich in the florida primary. new papers out today show some of those who helped bankroll that big win. eamon javers is in tampa with some names. hey, eamon. >> reporter: hey, tyler. makes me wonder why i'm not wearing short sleeves in tampa. it's about 80 degrees here. you're right, mitt romney had a big night last night. but right after that we got our first chance to take a look at some of the boldfaced names of the financial universe supporting romney's super pac. that's the unconnected to the political action committee run by outsiders financing a lot of television ads and campaign activity on behalf of mitt romney. take a look at some of these names. gives you a sense of who's behind the romney effort. starting with a couple of folks

from bain capital partners together they gave $750,000. and phil singer, hedge fund $1 million from him. also $1 million from julian robertson. another $1 million from robert mercer. and more boldfaced names as you dive into this financial disclosure report, you see mark an dreeson, the founder of net skap posting up $50,000. the outspoken real estate investor from chicago also po ponied up $50,000. the miami dolphins owner. and harlan crow and crow holdings $300,000. he's no slouch in the department. he's got the global casino magnet who has given $10 million to newt's super pac just in january. we don't see that contribution in this filing because this only covers what happened back in december up to the end of the year. so we'll expect to see those numbers in the next disclosure

report from the newt gingrich folks. guys. >> eamon, thank you so much. straight ahead as ty and i continue, it's rally time today. the markets made a slow but steady move upwards in january. the economic data though in the past couple of weeks has been a bit soft. so we have a new month and a new question. can the economy keep this rally going or not? >> and why don't we take a look at how some of the s&p sectors are trading today. look there. all of them are green, led by financials with a 2% gain. and the worst of them, utilities, it is still up .5%.

welcome back to "power lunch." i'm philip lebeau. we have some more details from american airlines about the proposals in terms of restructuring the company. a letter that ceo tom horton just sent out says the company plans to improve its bottom line by $3 billion, $2 billion of it will come through cost cuts, specifically $1.25 billion per year will come from employee-related cost cuts. unclear how much of that is the 10,000 to 15,000 jobs they expect to cut. they do plan to cut the work staffs, if you will, by 20% across the board. so, again, they are releasing these details. and as we have more of them, guys, we will certainly bring

them to you as soon as possible. back to you. >> phil, i'll take it. let's check in on the bond market where the yield went down to 1.84% -- actually that's a tick up from where we were yesterday. rick santelli at the cme with details on that. first of all, do you believe we're hours away from a greek resolution here, rick? >> well, you know what, i believe that the next lot to ticket i'm going to buy is going to be a winner. so why ask me, right? no, i personally don't. but maybe the market does. pick up on sue's topic. let's look at some of the nastier paper of late in europe. look at a portuguese 10-year. if you look at the last two days including today, what you'll see is they've shaved off a mere 175 basis points in two days from close to 17% now hovering slightly above 15%. well, let's see, if i was short that paper buying it back, my next trade would probably be, yes, you guessed it, maybe blow out some of those safe harbor bund. look at a bund chart.

look at it for one month you can clearly see someone's buying into the story as the right side's moving up. then the next trade, arbitrage keep in line and we're up a handful of points today. and last piece of the puzzle is the euro versus the dollar. it's up rather strong today. 132 in the cross hairs even though it's been higher. so to answer sue's question, the market and the investors at least seem to think there may be some substance under the smoke signals. we'll have to wait and see. back to you. >> all right. go get that lottery ticket, you never know, rick. all right. stocks moving higher despite mixed economic data in the u.s. the ism report showed the pace of manufacturing picked up a bit in january, the highest level since june. then private payroll slowed more than expected after a big gain in december. can the economy continue to support a market rally? joining us chief investment strategist and senior portfolio manager at the turner titan

fund. nice to have you here, gentlemen. >> thanks, sue. >> rob. i'm goij to start with you. for a while we were getting strong economic news and then things softened a bit. the market has been pretty consistent. can that continue if the economy slows down a bit? >> sue, you have to look at the overall body of work for the economy. i think if you look at the steep yield curve, strong corporate profits, the ism index and ism service index up above 50 many months in a row. and now the job front getting into the party, more from the nonform payroll report, i think some of these nonmarket reports have been weak. i think the economy is continuing to show strength. i do think it will cause the rally to continue. >> chris, what about you? >> well, our belief has been that earnings are really what's going to drive the market higher here. and to the extent that fourth quarter numbers continue to be reported and the numbers look pretty good so far, about 60% of the companies have reported within the s&p 500 have beaten expectations. that's creating a much better

than feared kind of scenario helping to drive stock prices higher. part led by industrial companies and technology companies supporting the data that we've seen the last four months about strengthening in the industrial indices. >> chris, talk to me about the facebook ipo. do you intend or expect to get shares in the offering, number one? or will you buy them in the open market right after they do trade? and will you hold them or will you intend to flip them? >> we're very excited about the facebook ipo. we think that we're in the very early innings of social networking. and what this business model can really produce. expectations are out there that somewhere around $80 billion of market cap will be created for facebook. again, putting that in perspective today google's around $185 billion. when google was public it was $30 billion. however we're at different points in time. facebook overall is a scratch in the surface with 800 million users where usage is significant. we're very excited about this

potential deal. and we'll be looking at numbers closely. >> so where do you buy it? when do you buy it? will you hold it or flip it? i take impolicely what you're saying is you intend to hold it. >> that's correct. we're in the very early stages of what this business model can look like. we know by looking at google's model which is the closest to a publicly traded company model that facebook will have is that we're looking at 60% kind of operating margins if the business is run well. and with very little cost of good sold. so you never have to worry about the price of oil, price of cotton or coffee. you can know in advance what you're getting here. it's really based on usage and relevance. and facebook has it. so we think we're early innings and very excited about it. >> rob, would you venture in to facebook if indeed you had the chance? >> sue, i agree with chris that we're in the early innings here, but you look at the ipos from last year, two-thirds of them are under water. there's going to be a lot of hype in this ipo. i think investors are going to

be able to buy facebook at a cheaper price than the ipo price. i'd wait. i would go for more established companies in tech like apple. >> all right. chris, what about google? i mean, you know, we posed the question yesterday in our afternoon meeting of one of our producers did about whether or not facebook in essence might make google obsolete if indeed they start to do some of the same things in a big way that google is doing? >> that's a good question. i actually take the other side of this. i think google is actually going to be shown to be in a very good relative state. last year google grew revenues over 30%. doesn't look like that's a company that's in the wane right now. couple big trends happening that are important, one, of course what's going on with mobile and mobile search. and having the android operating system and having the search as being a key part of what's going on in the mobile devices is key. again, remember, google has 66% market share in desktop search but about 95% market share plus

in mobile search. >> okay. >> and everything moves to mobile, the company has actually more relevant not less relevant. >> rob, quickly, if you wouldn't get into the facebook ipo right now, where would you put money? >> i love the large cap dividend paying gross stocks from a macro standpoint. industrials, health care, those are where i would put money now. >> and moving up nicely today by the way we should point out. >> indeed. thanks, guys. >> have a good day. >> straight ahead, shares of electronic arts under major pressure in january facing a big challenge from online gaming sites. that company reports after the bell. is it game on or game over for ea? >> ty and i are back in a minute.

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welcome back to "power lunch." i'm brian shactman. i want to get to three in 30. but keep your eye on the dow. we're pushing those levels. financials look very strong today. citi's up basically 4%. also getting an upgrade outperform at wells fargo trading in the $35 to $37 trade. look at pharma. two companies, savvy ceo leaving to take over at den dreen. quick silver in a bit of quick sand. downgraded from buy to underperform. that's a big swing at bank of america, merrill lynch.

price target slashed from 12 to 3. this is more damage from the collapse of the prices in natural gas. tyler, sorry, took four stocks in 40 seconds. >> that's okay, baby. and den dree on, social gaming may be one thing pushing facebook's ipo but coming at the expense of traditional gamers in some instances. electronic arts going to report fourth quarter numbers after the bell today. and turn to edward williams, managing director with bmo markets. good to have you with us. >> thank you for having me. >> give us some sort of guidelines here. what do you expect these numbers to show? what would surprise you positively? what would alarm you negatively? >> i think, you know, what we're looking for is revenues around $1.6 billion. earnings per share to come in somewhere in the mid-90 cent level. but the key number to look for, the key thing to focus on is what happened with star wars. the game launched on december 20th. we have some degree of color

from the company that the game sold exceptionally well in the first week. but what we need to figure out is beyond the quarter how's the game continued to perform. and post january 20th, which is the first month -- first anniversary of the month release when people started paying to play the game, what's the retention rate were they able to maintain? >> when did you say they released it? >> the game came out december 20th. >> why would they release a game five days before christmas and not earlier? >> the key thing with this particular game is it's a multi-year bet. it's not something to look at as being a holiday release, have it for three months and be done with it. this is one they're looking at having in the marketplace for a number of years. it's a matter of when they're able to prepare for both the content side as well as with the servers and the back end. but january 20th is an important date because that's the date when people actually bought it on december 20th had to actually start paying that monthly fee. >> right. talk to me a little. you have an outperform on ea stock, correct?

>> yes. >> talk to me a little about the threat it faces and how it is fighting back against the online gamers. because you think of ea, you think of the boxes, you think of madden, you think of tiger, what about the online component? >> there are a couple things there. i think ea is trying to get into the social games or into the online games. they've done it through acquisitions over the course of the last couple years. they picked up play fish a few years ago in the social games category picked up pop cap, which is a casual games player this past summer. but what they need to do is they have to take their brands that they have, the big brands that you mentioned that have established themselves in the box world and try and bring them over to the social world. and that certainly presents some challenges. and probably the biggest challenge that ea has is navigating through a different business model as you go from a big ticket packaged good sale to a recuring revenue stream on a microtransaction oriented model.

obviously it's been difficult and something they positioned themselves for, but that's the challenge. >> yeah. it's not unlike a traditional print publisher trying to migrate into the digital world. what do you think they're worth in a year? >> i think we can see the stock do fairly well from here. i think we can see it trade certainly into the mid to high 20s. and i think that what we'll see is that the investments that they have made into some of those areas will start to pay off dividends. the most critical one for the stock in the immediate term is really what's happening with star wars. >> all right. thanks very much. we'll be back with you soon, i hope. >> thank you. >> take it easy. sue. >> ty, up next, we have tim draper joining us. he's the founder of legendary cap firm. with the likes of e bay, skype, hot mail and buy do, in other words he's the smart money. meet the founder and he's teaming up with a new start-up mr. draper is founding. "power lunch" is back in two

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welcome back to "power lunch." i'm brian shactman. reset the markets. little giddy here. the markets are up triple

digits. it's wednesday so we can look forward to the super bowl and incredible coverage on cnbc starting tomorrow by the way. couple things to point out here, the vix down almost 7%. it's now getting near 18. some say it's getting a little kplcomplacency in the market. crude and gold we'll get to sharon epperson in the a second. i'll leave that to her. i want to point out again tech outperforming almost 1.5% in the nasdaq. earnings not named amazon, start with et na up about 4% now. numbers were strong although guidance was a bit below consensus. investors don't seem to mind. eps blowout, but revenue was light. they're managing their business. guidance also light. market again unphased making money today. maybe it's a rising tide. boston properties very similar story up only 1%. good q-4 but tepid guidance and the stock is up. insert whatever dialup joke you want but aol, beat and street

love it. hershey not getting a lot of love today. eps in line, hiked the dividend, not enough to catch the bid. hawaii air down 8.5%. a lot of good news in airlines, numbers were solid but two downgrades today, cost control seemed to be an issue with one analyst. let's go to sharon epperson at the nymex. >> brian, you know who's probably a little giddy right now is anyone who's invested in gold particularly in the last month. gold posted its best january in 32 years. and the rally continues. we're selling trades right now and gold is settling right below the 1750 level. we're higher again today for gold. and the upward momentum continues. barclays says look for its target around 1805 to be the next level to be reached. we're looking at the higher price in gold in large part because of what's happened in the currencies, decline in the dollar and rise in the euro over the past month is why we've had the best month for gold since august. but it's not only gold. we perhaps should see some

profit taking here, but we're not seeing it yet and we're not seeing it in some of the other metals either. silver up 21% in the last month. copper 12%. turn the picture and look at a different side of the commodities market. that's what's happened to natural gas. once again we're looking at a selloff in natural gas, sue, warmer temperatures, 62 degrees in new york. can you believe it? february 1st. that is a big reason. and of course we're going to get inventory data tomorrow. storage levels may be another reason why a lot of folks sell nat gas in the day ahead. back to you. >> all right. i can't believe it's 62 degrees. let's not curse it. let's talk facebook. potentially the biggest ipo in tech history. the energy coming out of silicon valley, the money pouring in, all spells good news for start-ups and venture capital firm trying to back them. in a cnbc exclusive interview, founder tim draper led skype and

microsoft and hot mail acquisitions and the co-founder of identified a social recruiting start-up leveraging facebook's data and backed by mr. draper and google's eric sh mitt. perfect day to have you on. welcome. >> great to be here. >> tim, let me start with you. and then if you would weigh in as well. your reaction to facebook coming public, what it does to the ipo environment in general, and how successful you think this ipo will be. tim, you first. >> well, i think it will be a very successful ipo. i think facebook would have probably rather done an xpo with expert financial and stayed private, but now that they're going public, i think the public will be very receptive. i think it's a great company. i think they're going to have -- it will be very successful today. >> and brendan, would you weigh in? you were the former private equity head at blackstone, investment banker at goldman sachs, it's a big deal for the street certainly, but what about for silicon valley itself in your neck of the woods?

>> yeah, i think it will be really interesting to see how the company's valued. obviously facebook right now derives most of its revenue from advertising. and you've seen that facebook is kind of become this black hole on the internet in terms of engagement and ad dollars and marketing dollars have followed that. >> uh-huh. >> it will be really interesting to see how the public markets perceive the value on facebook platform, which i think is where mark zuckerberg and a lot of facebook management see the long-term profit maximizing potential of this company to be. so i think it will be really interesting because it's really a new industry. and it's a new kind of company. and i think probably the street is not as used to valuing companies like this. >> i want to turn to identified in a minute because i think it's a fascinating thing, but i know you'll indulge us on this day sort of facebook day with another question on that, mr. draper. i wonder if you would put into context what the valuation of facebook will mean in terms of the values that other companies in the valley might get or might

be worth in the same sense that when albert pujols signs a $240 million contract, everybody else benchmarks off of that one. >> yeah. i think there is some value to that. and i think there is a domino effect. and i think you'll see a lot of companies in both the private and public sector growing in value because they say, well, look, we have this many users and this is how many facebook has and they're worth $100 billion and we're worth x. so i think we're going to see a lot of that. i also think that it's just a good time. i'm very optimistic. i think we're going to see a big boom in tech stocks of all kinds. and i think there are going to be multiple markets that allow these companies to flourish. we've had sort of a 10-year

dearth in technology and i think that dearth is just about to end. >> brendan, tell me about identify. you use some of the things facebook provides. tell me what -- where you want to take this company? and eventually do you plan perhaps with mr. draper's help as well to go public? >> thanks, sue. i guess to tell you what identify does, we are the largest data and analytics on linkedin is an older generation. the facebook generation, a lot of professional information, where they went to school, where they work, that's all on facebook and they're disclosing that and updating that on ta daily basis. what identify does is we look at all this information and we use all this information to measure what's in demand to companies right now. so who companies are hiring,

what educational backgrounds they find interesting, what skill sets they value. and we convey that information back to the users in the form of an identified score. which is really interesting because it provides a game mechanic for users to add information about themselves. so kind of what we're doing is building a really deep data set on this younger demographic that's not on linkedin. >> i don't know where you're familiar with or many viewers are familiar with naviance. it can help me figure out if i'm interested in going to work for proctor & gamble, do i have a chance of competing there given who i am. is that a fair characterization, brendan? >> yeah. i think that's exactly what we're trying to do. we're trying to measure what's in demand right now. i think what you're seeing in the u.s. economy is that there is a bit of a labor mismatch. obama talked about it in his state of the union address. there's an oversupply of job postings out there for technical skill sets, but still huge unemployment. so i think what's happened is

what companies are looking for they haven't been able to communicate that back to the job seekers in a meaningful transparent way. so what we're hoping is that identified and sounds like that company as well, can help do that and hopefully solve part of that labor mismatch in the economy right now. >> quick question for you, mr. draper, is facebook's going public good for mr. wallace's venture and yours? >> yes. i think, actually, facebook going public is going to be terrific. it will just grow facebook. and we've used facebook as a platform for a lot of different companies. and, of course, zynga uses facebook as a platform for games. and spotify for music. and gifts for facebook friends. stik, for allowing people to go to professional -- getting professional references from friends for professional

services. >> yeah. >> and of course identified for building your own professional network. i think facebook is a new platform. it's a great opportunity for entrepreneurs everywhere to create sort of something new. and these new platforms come every two or three years. and facebook's got one right here. and entrepreneurs everywhere are taking heed. >> gentlemen, good luck. tim draper, brendan wallace, we wish you well. >> all of those platforms that i know so little about but must learn. up next, facebook is all about sharing. so why aren't they sharing more shares with their users? >> and here's a question, will facebook make google the next yahoo!? think about that one. a special edition of the hot file is on deck.

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given they're a social network, are they being sort of anti-social with their users? more now from kayla tausche, jon fortt and john carney. first question to everyone here beginning with you, kayla, should facebook share less of its stock with the banks and more with its own clients and customers? >> well, tyler, the original issue with the $100 billion figure when it came out was a bit of sticker shock, but also the company wanted a little bit of room for upside if $100 billion is full valuation, you got to be able to have some upside there. they hired the banks to be able to price this conservatively and build in that upside. when you open it up to the entire market, you can't engineer it that way. >> jon fortt, same question to you. >> i don't see the point. when you think about more than 800 million facebook users which of those actually get to participate in the deal, pretty much everybody who's going to be buying it after it's publicly traded is the same people who would get in before. it seems to me like they would have to play favorites to do that. >> john carney, am i being too

populous here? >> i think you are. i also agree with my fellow panelists here. there's a lot of dangers when you start letting your users become your investors. other companies have run into a lot of trouble by trying to do this. what happens if the stock price drops? suddenly your users hate you. it's never a good idea. >> all right. >> great point. >> very good point. i'm thinking vonage perhaps, john carney. >> exactly. >> what's the next big money making opportunity for facebook, and howckerberg monetize the company? >> apple's got somewhere near 250 million credit cards on file. facebook's got maybe a tenth of that. so they've got an opportunity there. also being even more of a platform where the companies can sell apps to people and maybe facebook can make money on the back end there beyond advertising. >> john carney. >> i think facebook mobile. i wouldn't be surprised within two years if we have facebook on our phones as the operating

system to which we connect to people. i'm pretty sure that right now there's somebody in facebook headquarters probably designing a phone operation right now. >> yikes. we'll hardly have time to work, kayla. what do you think? >> i think it's all e-commerce all the way. right now advertising is 90% of its revenue. you need to diversify that a little bit. i think when i put on my m&a hat that once they have a bit of a currency in their own in the public market, they should buy e-bay. >> very interesting. >> great idea. >> turn to another question here and maybe it's the existential one. can facebook turn google into the next yahoo!? john carney. >> remember when we're talking about advertising it's always a very limited amount of money. so it's basically a zero sum game when facebook gets more market share, they're taking it from someone. right now they've been taking a little bit from everybody. but eventually i do think we'll see a clash of the titans between google and facebook. it's going to be really exciting.

and i'm looking forward to it. >> kayla, is google threatened by facebook? >> no. i think it's a two-horse show. they went at the web differently. facebook started at social and then went to being a one stop platform and google started with the platform. the problem with yahoo! they never tried to involve the user and it's coming back to haunt them. >> jon fortt. >> there's absolutely that danger. what's happened to yahoo! is growth has been capped, attention is shrinking, that is what could happen here. google needs social data. and people's attention in order to grow. that's exactly what facebook is sucking up right now. >> john carney, let me ask you about amazon. you know, the stock's been hit hard in the last week. has amazon peaked? did they have to change the business model? they're warning of a possible first quarter operating loss. what do you think? >> i think there's a lot of competition. when you look at amazon, you want to know not just how is this company going to do this year and next year, but how is it going to do in the long-term? and as companies like facebook and google start to get to know

us better, they're going to get better at selling us things. i don't know if anybody's ever going to sell more books than amazon, but remember amazon sells a lot of other things. i think that becomes a big challenge once you have google marketing to us, once you have facebook marketing to us, can amazon still be selling us giant tv screens and shoes? i don't know. >> especially if they do what kayla says they're going to do, which is buy e-bay. there you go. thanks, guys. appreciate it very much. >> amazon becomes best buy's poodle. >> coming up next, some folks hate their banks, but what if you got free prepaid debit cards? >> throw in higher interest rates and you have what jane wells calls the anti-bank bank. we will explain -- or she will, in two minutes. ♪

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all the occupiers may have gotten their message across, at least to one bank. what's not to like about higher interest rates on your savings account? jane wells joins us with the details on the anti-bank bank. jane. >> sue, it's an unusual story. austin-based going after millions of americans not really using the bank, taking a prepaid debit model and adding a savings account bringing in george lopez

as pitch man. savvy young people choosing a bank for the first time including some of the occupy folks. demonstrates how you can text money to anyone with a cell phone. >> this is my previous $100 that i sent to george. here's 35 space and phone number. it's as simple as that. if you can text somebody, you can send them money with mango. >> to receive the money you have to set up an account on your smartphone. you get a virtual card to use online until you get your mastercard in the mail. why george lopez? he knows his fans often distrust banks and need financial education. >> but with me, and the way i grew up and knowing how little we had and how we were afraid of banks and how we never really balanced a budget, we just in our mind assumed we had this when we didn't have it, it gives you a sense of security when you wake up not knowing if you have enough money to check out of this hotel. >> mango accounts pay 6% on the

first $5,000. the rate drops to one tenth of 1% right now which is about the norm. mango believes it can pay so much by charging fees elsewhere and building long-term relationships. the company backing mango has some pretty big name investors. >> you're talking about the founder of clear channel, red mccombs, talking about people like john from morgan stanley. you're talking about people that are committed to what roy and i see as the long-term play. >> also there he said peter, the founder of e-bay is backing it. by the way that 6% rate is subject to change, probably if everyone takes advantage of it. and mango is fdic ensured. back to you. >> thank you, jane, very much. >> just two hours left in the trading day and the agonizing wait is almost over. >> our picks for charts of the day next.

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