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tv   Fast Money  CNBC  February 1, 2012 5:00pm-6:00pm EST

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and paying attention. >> no doubt about it. thank you, everybody. great conversation. we'll watch this story. thanks for joining me on "closing bell." i'll see you tomorrow. follow me on twitter and google plus. stay with "fast money." more now on cnbc. live from the nasdaq market site, this is "fast money." let's get to the most anticipated ipo since google. we got the story covered from all angles with reporters back at cnbc headquarters and in california. but first let's talk about the filing itself. there were a number of first-time disclosures here by way of daily active users. 483 million daily active users on average in december of 2011. 2.7 billion likes and comments per day. karen, you're also noticing in term of the financials, the cash flow on facebook. >> the growth is amazing. so you have to make -- of course extrapolate what the trajectory of that can be. i think we'll see multiples that we haven't seen since probably
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the internet craze. which obviously gives you tremendously large valuations. that i probably won't be able to get on board for even though it's a great product. >> this is the internet craze in some ways. >> it is. social media. everybody wants a piece of this. regardless of price and regardless of valuation coming out of the gate. okay. now how do you convert this into the ad sales? the revenues everybody brings up. it does make you wonder. you look at these numbers the valuation has gone from the 50 million valuation in 2010. it was 65.5 million. now people are kicking around numbers like closer to 85 billion. when you start looking at these numbers, now you've got to say to yourself how does this translate into their ad sales and can this convert? you're talking about 400 million some people on there daily. >> 483 million daily active users on average in the month of
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december. they also break it down by monthly average users. 845 million as of 12/31/2011. the daily is still strong. that's what the valuation is about in part. >> kpangtly. with the valuation at these levels, i think you have to question it. this company is being priced almost to perfection. you have apple up here. you have google up here. and facebook jumps right in with them? i think it's -- you know, i think it's a stretch. they still have a lot to prove to see if they can go to a great investment. >> they'll get a lot of rope on this one though. they'll have it months and months that people will allow them to have this valuation. you could have this for the next 18 months. about stretch valuations, you come back 18 months, you're having a similar conversation. just because valuation's a stretch doesn't mean the stock can't go higher.
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i think that point is a long ways away. >> in terms of revenue growth, what sorts of companies are you paying for revenue growth in the league of 88% year on year. 2011 revenues at $3.7 billion. for the fourth quarter 1.1 billion. >> apple. i mean, i don't know if it's 80. but it's huge. the nurnl's huge. the valuation is nowhere emotely close by tens of multiples. >> right. so that makes you say no thank you. somebody taps you on the shoulder, hey karen would you like an allocation of facebook. >> we were offered an allocation of facebook at a valuation of i think it was high $60 billion. in the last two weeks. which i don't really want to participate on. >> in the last two weeks it was valued at 60 billion and you said no thank you. >> as long as they allow you to
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flip this and trade this, i absolutely would want it. i would put up all the money i would put to get into this. but i wouldn't hold it long. i agree with guy. i wonder how long does this whole engagement process last. i mean, is it six months? 12 months? what kind of rope do they get to trade at a valuation most of us can't get around. >> that's a huge point. being able to get out. i don't know if you'd be able to get out. having the ability to flip it. which you can do if you buy on the ipo. >> i don't know the answer to pete's questions. a lot is contingent on this market. this market that continues to grind higher towards the levels we've been talking about. the s&p that we last saw back in may. so if and when it gets there, what happens? do we now break through north of 1400? or do we create this double top. a lot of it becomes contingent on the broader market. i think to answer the question,
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i think there'll be -- i think facebook the stock will get a lot of rope to hang ids. >> there are derivative plays. there are a lot of stocks in the after-hours trading that are moving sharply. zynga for one. which amount was a comprised of related to zynga sale of goods. we're seeing spikes there. also shares of renren. this has gone up, the order of 50% in the last three days of jan or so. but that run is you know, five days ago it wasn't trading near where it was trading right now. interesting to see the effects here. also scene it.com. that the likened to the facebook of china nap is one to watch as well. kayla, i know you've been pouring through this. what are some of the highlights so far?
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>> you're running the deck at the bottom of the screen. i know that was a big concern. especially when zynga was going public. how much of its revenue was accounted to facebook. we are seeing this symbiotic relationship. to point out the ad revenue slowed a little bit from 95% of revenue in 2010 to 85% of revenue show diversify kags. total capitalization for the company just under 5 billion. and interesting it says it sees google, twitter, and microsoft as. its competitors. a lot of interesting nuggets here. it's a 201 page document. it's going to take us awhile to sift through it. but we'll have all the details for you. >> come back to us when you have some more. i want to go out to julia boorstein who's standing by in california. i don't know if you've seen
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anybody come out. maybe jumping for joy at this point. >> we haven't seen any balloons or heard any loud noises of celebration. but you can bet everyone in there is paying attention to this. i've heard zuckerberg will be convening employees to talk about this news. i want to point out some of the i thinks that mark zuckerberg noted in his letter. he wantings to make it clear he has a mission beyond just making money and having a good business. here's one quote. simply put we don't build services to make money. we make money to build better services. he goes into quite a lot of detail in his letter talking about how important it is that anyone who invests in facebook understands what his mission is. he really considered this a social mission saying that he's inspired by technologies but he does have a social mission here. it's not just about making money. we'll have to see what shareholders think about that. ad revenue which is of course this company's bread and butter. though it is strong and they
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have the 2.7 billion engagement in the number of likes and comments every day. revenue and ad growth did slow. there is 145% growth. but between 2010 and 2011 that slowed to 69%. >> thank you. actually julia. looking through the zuckerberg letter in the filing, it's also interesting how he makes clear that he believes that facebook makes it easier for people to discover new products and services. that there is a marketing message that facebook is a tool for marketers to use in order to spread the good word about their own products. >> yeah. and the quote that i like here is he says we hope to improve how people connect to businesses and the dmi. to set up free facebook pages and offers them the opportunity to market and drive people to those pages. so there is -- you know, it's supposed to be an open communication between people and brands and to allow people to connect to the brands that they
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can. which should make the communication and the advertising more effective. >> thanks a lot for that report. just to touch on what kayla had mentioned before just to remind you all in october of 2007, microsoft took a $240 million equity stake in facebook. at that time they were valued south of $20 billion in 2007. now viewed as a potential competitor. although in these filings, these are often kitchen sink sort of filings. everyone could be a competitor to them at this point. >> you bring up microsoft. you might as well talk about it. levels we haven't seen since early 2010. i know this is heavy facebook. but here's a stock that pety has talked about for awhile. and ever since you did that interview with jim cramer, the stock's went to 24. then now it's near 30. so facebook's a great story.
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but microsoft slow and steady wins the race. >> and it's a bond alternative. i mean, honestly, when you look at it now and look at ten pe. and you've got $50 billion in cash and by the way they've got the windows 8 coming out. there are catalysts that could push microsoft. the margins will get a lot better. every margin will go to the bottom line. that's why i think this goes higher. i've owned it since april. i'll continue to own it and sell upside calls. >> we want to continue with the facebook story. let's bring in a shareholder. cofounder of technology funds. facebook represents about 5% of the portfolio. kevin, great to have you with us. >> thanks. good to be with you. >> would you take an allocation at this point if given the opportunity? >> we are hoping to increase your position, that's right. and there's good reason it's the first position in our portfolio.
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we want to make it languager still. >> in terms of valuation, in terms of what the metrics are we know according to the s1. there are companies out there that may share metrics like an apple that have a far lower valuation. why are you giving facebook sort of the benefit of the doubt at this point? >> i would frame it this way. look at yahoo and google. yahoo's got tremendous traffic. but google does a much better job of monetizing their traffic. so if you take a look not at what facebook is right now and what it's trailing numbers are. everyone will admit it looks expensive on those metrics. look what facebook is on its way to becoming. it'll have more users than any other site. they'll linger there longer than anywhere else. and they'll know more about them. so do you really think given the time to study this problem,
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facebook is not going to be able to monetize that at least as well as google has monetized their traffic? >> it's karen. how do you transfer some of those metrics into cash flow? i mean, is it maybe worth $200 per 483 million users? maybe that's how you get to 96 billion. you got to have some formula to get there, right? otherwise it's just a greater theory. >> well, a year from now we'll have much better numbers than today. right now we're all going to stay up late reading this s-1. it's really an exercise in what can they become. not what are the numbers that are available today that you can crunch. all you can crunch today is facebook's history. and facebook's value today has little to do with their history. it's just where they're headed. >> right. i'm asking where are they headed? how do you convert some of these
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impressive numbers into the valuations for you to say i want to be a buyer, you know, in the range where they're taush? >> it's tough. i wouldn't want to be a sell side analyst covering this stock right now. because they're all sort of shooting in the dark. the numbers will be all over the map. i would say take the number of users and try to figure out how many to get. figure out the tough part. wa what kind of a premium you can get. for the spisk targeting that facebook is going to be able to offer. that's the key. facebook knows more about its members or its users than just about anybody else. and so they should be able to make a much richer offering. >> they should be able to, kevin. it sounds you're willing to take a leap of faith. the sell side analysts will have work cut out for them. monetize the number of users and likes and comments on any given day. but how exactly do they do that? it's one thing to generate the traffic. it's another to justify the
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valuation. and to own a stock at this that will go into the valuation. >> you cannot make the math work based on the numbers you have today. if you want to do trailing revenue, trailing earnings, trailing cash flow, it'll look like the most expensive stock from it. the only people who will buy this stock are people who are making projections. that's it. and i mean you can build all the spread sheets you like. it's not going to help. what you're doing is crunching recent history. and you know, yeah, okay the past is prologue and all that. not like you can extrapolate from this. >> the valuation seems a little bit high. but thinking here, there is one company out there that has 97 or $98 billion. not to start a rumor, maybe apple takes out the whole thing here before this process gains traction. >> i think that ship has already
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sailed. i'll buy you a steak dinner if that happens. >> deal. >> all right, kevin. we appreciate your time and your honest y i in this matter. coming up next if everyone is clamoring to get in, why did one stake holder cash out half of his holdings? we'll ask him next. 20 pages. boom! the other office devices? they don't get me. they're all like, "hey, brother, doesn't it bother you that no one notices you?" and i'm like, "doesn't it bother you you're not reliable?" and they say, "shut up!" and i'm like, "you shut up." in business, it's all about reliability. 'cause these guys aren't just hitting "print." they're hitting "dream." so that's what i do. i print dreams, baby. [whispering] big dreams.
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welcome back to "fast money." we're live at the naz back market site. we're going through the s-1 filing of facebook this afternoon. jon, you dug up interesting details about zuckerberg's ownership and provisions upon his death. >> that's right. this says that he maintains voting control of the company because he's got the class b stock half of class a stock. upon his death that power will go to his designated successor.
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a few other details that -- growth revenue in ads. it says that 42% of that number of ads served grew 42%. that accounted for a big part of their growth. also the price of ads grew 18%. the number of ads served was big compared to the increase in the price of ads. one other thing they happened to mention, they operate in 20 countries when you include data centers. and they're least obligations are considerable. $2.2 billion worth of lease obligations if you look at all the years they're obligated. >> thank you very much, jon for fortt. meantime over to kayla at the news desk. she's also been looking through. got some details on executive
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compensation. and also china which of course is a big question mark particularly when you have a company that's valued at what facebook is valued. want to know about international expansion. >> i first want to touch on something jon said about the voting. what they call a super majority. this rattled during groupon. they said you're only putting a small fraction. in the past it'll be interesting to see whether they're willing to concede control. on china from the s-1 but the paragraph closes with we do not know if we will be able to find an approach to managing content that will be accept to believe us and the chinese government. facebook also saying it sees mobile products as key company
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priorities. the company also says it does not foresee paying a dividend in the foreseeable future. if they're going to make $5 billion plus in that proceeds from this offering, what are they going to use it for? the company says we do not currently have any specific uses of the net proceeds planned. they say they may use a portion of that to pay anticipated tax withholdings. those are restricted stock units that may come due in six months. at least specifically here. they say they also may intend to invest in investment-grade interest bearings securities. such as money market funds, cd accounts were or guaranteed obligations of the u.s. government. pretty standard general corporate purposes. type of boilerplate language there. interesting stuff coming out of here. >> all right. we'll talk to you soon. interesting to note what facebook is saying about china.
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they're giving sort of the same line that google has given in term of content by the chinese government. let's take a look at shares of cena. it's been trading higher on this hey low effect. but if we know that facebook may not have plans to enter china. sina has 200 million users. that's after the first half of the year. so that is compared to facebook in terms of being the facebook of china. also renren, that's another we mentioned before. having run up into the facebook filing. that stock is higher in the after-hours session by more than 3%. all right. let's move on here. interpublic group has what a lot of others want right now. that is a slice of facebook. it sold half of its holdings ahead of the filing. michael roth is with us now. also has another event coming up. that would be the super bowl. pete, turn off your phone. good to see you.
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you made a $5 million investment back in 2006. you sold half of it not that long ago. august of 2011 for $133 million. that's a fantastic return. but at that time you saw what facebook -- you probably had a good glimpse as to what facebook was going to be. what it was going to do in terms of going public. why did you choose to sell at that time? >> we're not a mutual fund. when we made our investment in facebook, it was for strategic reasons. we wanted to learn something about facebook. there's this new entity out there. how can we help them and learn something? we did that. when it no longer became strategic and it grew to what it grew to and it was a private company, we had an opportunity to sell some of it. not all of it. we still have half. at $133 million. we're at $131 million gain.
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i think that's a good opportunity for us. we took that money. and we increased our share buybacks. we returned it to our shareholders. >> what do you think about their business and the trajectory of their growth? how do you -- what kind of -- at some point we ought to see long definition returns in terms of the rate of growth. >> i'm an investor. as far as i'm concerned, the higher valuation the better. look. facebook is an integral part of what we do right now. its growth has been tremendous. whenever we do an offering for our clients it includes a social media content and social networking. you have to have that opportunity and facebook right now is it. obviously twitter and linkedin and all the others are part of it. but facebook is critical. >> is there anything out on your radar screen now -- let's go back five six years ago about facebook. anything now on the radar you
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can talk with us. >> we have an emerging media lab here in new york that we experiment in a lot of this new media. the media landscape has changed dramatically. we're looking at new media. i can't disclose what they are. but we certainly are looking at other opportunities. >> so given that you've had a bird's eye view on what goes on in facebook, you say you learned. how do you monetize the notion of 383 million monthly average users. how do you value to a proctor and gamble or whatever client you have. what is that worth? how do you translate that? >> you would value like any other company. it's ad revenue. i assume a significant part of their revenue is ad revenue. the growth of the ad revenue and how it -- the relationship between the brand and the consumer is what's critical here and how you use that platform to
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generate that relationship. >> but dollar per dollar from thundershower standpoint, yould you advise -- i know this is apples to orange comparison. when you're advising a client as to where to place an ad, is facebook more valuable than broadcast tv or cable tv? >> you know what? we're to advise where clients sent their money. some places it's marketing. we have all of these different opportunities to work with our clients to place their ads and where to spend their money. our job is to help them analyze the return on investment and where's the best bang for their buck. sometimes it's facebook. sometimes it's cable. sometimes it's the super bowl. and frankly that's where we get paid to add value. >> let's talk about the super bowl. >> good. >> of all the super bowl ads. people share them and talk about them. >> yes it's changed the
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landscape. >> does it make the ads more valuable? >> well, if you look at it in the last ten years, the value of the cost of the 30 second spot has risen 57%. just from last year we've seen an increase. so certainly the presence of social networking has added to the legs if you will of any advertising campaign. we fortunately -- deutsch of l.a. did the darth vader volkswagen was the highest rated from the super bowl. that had 90 million sights on youtube. hit ifs you will. that has relationship. if you can get that audience, why shouldn't you spend that money? >> could you explain the demographic of facebook versus of the super bowl? >> the demographic of the super bowl is unique. you know, 40% of the country at one point or another during the game will be looking at the super bowl.
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so it crosses all the different geographic areas, the age demographics. that's why the super bowl commands that kind of price. so it's not -- you can do target marketing in facebook for sure. but to get the breadth of 111 million viewers which we had last year's super bowl, at one time. and what's interesting about the super bowl is people stay and watch the commercials. in fact, the number of individualings -- >> this is one of them. sorry to interrupt. this is one of the new ones that's going to air in this super bowl on sunday. >> yes. this is the follow-up. >> it's a great ad. it really is. >> the dog strikes back. of course we can only show a glimpse of it. >> it's actually -- it's prereleased. and here again is a -- it was prereleased to have the consumer involved. and this is deutsch l.a. again trying to reprize the success of
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last year. with the success of volkswagen beetle. >> thanks for stopping by. coming up next, is there still fast money to be made in the fast food stocks? plus a coffee stock making a big move. and our team is still going through the s-1 filing. more "fast money" coming up next. hello, how can i deliver world-class service
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faik book isn't the only story we're following in the after-hours. green mountain coffee moving sharply higher. more than doubled here. we got that positive data point about starbucks k cup sales. wier seeing another leg higher
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here up by about 16%. also chipotle here. not good news there. obviously when you're saying that sales growth will abate. it is down by 2% here. >> not good news. good point. the stock made an all-time high today. given that quarter which you made a good point. it wasn't a blowout quarter. operating margins were in line. 42 times forward earnings which is ridiculous. one would think the stock is down more than it is. given what all the things you've said, given that run. >> yeah. >> stocks should be down more than it is. just saying. >> does that make you optimistic about cmg? >> it doesn't. i think the cmg story is -- if you knew this quarter going into it you'd look at the closed down
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today. a lot of these high fliers is no big negative on the overall market which is showing a lot of strength here. it is a point where some of the high fliers you have to see if you were able to keep the same growth going forward. >> all right. let's dial back to green mountain. we've got herb greenberg on the story. you've been pouring through the earnings release. >> the earnings release and i'm on the earnings call right now. it's interesting to watch the stock trade after-hours. people react to the headlines of this that you had a beef. but there was this guidance down for the next quarter which is kind of interesting because the company said they'll be -- revenues will be up 45% to 50%. the last time you saw that, that was back in '08. and you also have -- you're coming off 100% gain this past quarter. on the call the company is talking about interestingly they had better than expected sales of brewers. they sell these brewers at cost. they're saying this will create
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confusion going forward in the mix. also they'll introduce their next generation machine this quarter. that's interesting. their pa tepts are coming off. it's interesting who will buy what going forward. this is not reflected in e in stock right now. of course you have inventories. increasing on-hand inventories. analysts are actually questioning right now why there was a decline in the guidance going forward if everything was so good. but just the mix of issues here right now kind of interesting. >> yeah. thanks so much for that update. we appreciate it. it was a trifecta, actually, of earnings after the bell that we're following. qualcomm, we're seeing the stock raise higher. want to go back to julia boorstein outside facebook headquarters. have you seen anybody come out yet? >> well, what i think is really interesting is obviously we've
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been talking about advertising. you spoke about that in the last block. in addition to advertising, it's important to look at the payments business which facebook is growing fast. this is going to be a big part of facebook's business going forward. in 2011 the other revenue category came in at $3.7 billion. but back in 2010 the other revenue, that was only $106 million. we're talking about this category growing five times between 2010 and 2011. a lot of this revenue comes from virtual goods for games like farmville. facebook says that it sees this market for virtual goods growing to be a $14 billion market. i'm sorry. $15 billion market in 2014. so there's huge potential growth there. but i want to point out that facebook says while right now it has this payments businessman dated for its game apps, it's
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considering expanding the business to other types of apps. that raises a lot of -- away from that ad business. >> retail along the lines of an amazon.com, julia in. >> no. i think who knows. let different companies create apps to sell things on facebook. and facebook would then take the 30% cut. or we're going to see more music and movies being sold. you can buy warner brothers movie and stream it on netflix. it still hasn't really taken off. so if we see a lot of payments going on facebook, think about what the potential is. you can see retail. like an outfit, share with friends, buy through facebook. i think the potential here is limitless. and it'll be interesting to see what they do with it and if they plan on expanding beyond just the games business. >> yeah. shared shopping experience would
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actually be an interesting proposition. thanks for that update. got to take a break here. much more on facebook. also the trade on qualcomm which is moving higher in the after-hours session. and a trip out to indianapolis ahead of the super bowl for a very special guest. stay tuned. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade.
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welcome back to "fast money." obviously everybody is very interested in facebook. wants to read the filing themselves. so much so that sec.gov the website is down. it has crashed because there are too many -- i was trying to get on it myself. and we also want to touch on qualcomm. just before the break we mentioned the earnings are out. it was a very good quarter. pete, what do you think here? >> smart phone demand was strong, they said. shocking. when you go back to apple and look at what intel had to say. obviously last night was broadcom. projections going forward were strong. raising to the bottom line of
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the low end and the high end as far as the full year. so across the board just a strong beat by qualcomm. i think it does hit towards the $70. >> let's move to the next here. our own darren revel made his way out to indianapolis. he is joined by cam newton with news on cam's latest endorsement. >> that's right. cam newton is the favorite for the pepsi nfl rookie of the year. that'll go down on saturday night. but in the meantime, we're breaking that he is signing a deal today with pepsi co's gatorade brand. been in the league since 1969. not cam, gatorade of course. what's it like to do a deal with gatorade? you're only their third nfl athlete after peyton and eli. >> for me growing up as an
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athlete since the age of seven, i've always drank gatorade. so now me having an opportunity to be part of the family is just something that i can't even fathom right now. but i'm going to love in the long run. >> you went through a bit of testing today. they brought their sports science lab. i'm not going to mention what happened. we'll keep that for later in the week. there's new products out to take to the next level. what you have here is a bottle that basically grips to your hand a little bit better. they have these energy chews and a protein drink they've had before but it's lower calorie, lower fat. what do you think of the next generation of products beyond the standard gatorade and their system of one, two, three before during and a after? >> something i learned today that put things into a perspective is putting the right things in your body. from rehydrating yourself,
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giving yourself energy and nutrients. it's unbelievable what wonders it does for an athlete. being able to go through a complete game and not have to cramp and perform at highest level. it's unbelievable. >> you have the big underarmour low go on you. they had faith in you. you were obviously the number one pick. lot of doubters. lot of hate for you. how do you stand up to that? and how do you feel now after a season where people really said wow, this guy is the real deal. >> well, the thing in the business i'm in, you're always going to have critics. it's not like being on the top of the mountain and i'm finished and people won't criticize things i do. it's nonstop for me. i'm going to continue to do. with the success i had this season, people are going to ask i wonder can he do it again next
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year? i think the bar has risen not only for me but the carolina panthers to to be able to come through. i think we have a question from former nfler pete najarian. what do you got for cam? >> quick question for you. you exceeded what reggie bush signed signing with adidas. i'm curious. last year you did a great job of game manship. was the nike a reel deal that was potentially out there? i know you wore underarmour during your college days. does that just sweeten the pot? >> absolutely. and you know, not taking anything against nike or underarmour. those guys were the top competitors in the endorsement signing i was going to have. in the end i signed with underarmour. it was between nike and underarmour. that's the reason i have product from both. >> by the way, pete, cam told owe something i really liked.
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i said are you staying for the game. he said he will not watch a super bowl in person until it's through the helmet and he's in the game. >> that's fantastic. >> i like that attitude. guys, back to you. >> good stuff. thanks so much. for more with darren and cam newton, check out sports biz at the super bowl. that's friday on the nbc sports network. and be tuned into nbc this sunday to catch super bowl xlvi as the new york giants take on maybe take out the new england patriots in a rematch of the epic super bowl from four years ago. coverage starts live at 2:00 p.m. eastern time. coming up next, we continue to go through the facebook s-1 filing. much more "fast money" coming up next. until the end of the quarter to think about your money... ♪ that right now, you want to know where you are, and where you'd like to be. we know you'd like to see the same information your advisor does so you can get a deeper understanding
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and the storybook narrator... [ man ] you're left with more electric trucks. more recycled shipping materials... and a growing number of lower emissions planes... which still makes for a pretty enchanted tale. ♪ la la la [ man ] whoops, forgot one... [ male announcer ] sustainable solutions. fedex. solutions that matter. let's hit some "options action" here. mike khouw is looking at whirlpool. one of the biggest winners in the s&p 500 today off its guidance. >> i think when they came out with a positive surprise here it really gave a quick boost to the stock. i still think that some of the
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longer term headwinds this company faces could obviously put some pressure on any further gains. so one of the things you might look to do if you're fortunate enough to ride it up here is have calls against it. you could collect about 4.5 bucks for those. i do think the stock fell off towards the close. that would yield about 7% until maturity or 17% if you analyze that. if you did sell it that's above the average analyst price target. though i do expect some of those targets to rise based on today's earnings. >> you were in whirlpool. now you're looking to short whirlpool. >> yes. i agree with mike's point here. we were long whirlpool. we got out short of the stock. i think it goes a lot lower. the 7% looks like a great trade. but i think whirlpool set the bar too high for themselves here. we touched on it on the half-time report today. whirlpool raised guidance so
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much on their earnings to close to $7 that they're going to have a lot of showing to do. i think the stock trades back. >> all right. you can catch more "options action" every friday 5:00. follow the show on twitter to get constant trade updates. more "fast money" coming up next. medicare. it doesn't cover everything. and what it doesn't cover can cost you some money. that's why you should consider an aarp... medicare supplement insurance plan...
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let's get back to kayla tausche. you've got stats here. >> we do. and i promise i will get there. we are learning from the filing that the fair value of class b common stock is said to be $29.73 a share. we get a look at margins. margins were 47% in 2011. but coming down a little bit from 52% margins in 2010. also interesting is that it says that mark zuckerberg will sell some shares in order to take care of a tax obligation he'll hit when he buys 120 million class b shares. a little bit above that but he does have an option to buy 120 million of those shares at six
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cents a piece. and incuring some taxes. he made 1.9 million. salary coming down to $1. ceo made $18.7 million last year. the engineering head makes more than the cfo. the vp of engineering made $24 million. and mark zuckerberg's dad has 2 million shares. >> one more question for you. in terms of the retail investor allocation, that is something we would learn about closer to the time of the filing, correct? >> as well as the determination of the float, the price range, all that stuff usually comes farther down the line. >> all right. kayla tausche thanks for that. karen, in terms of all this that we're learning i'm wondering what your reaction is. >> i actually am confused by that fair value of class shares. i don't know if that's what -- i really don't know what that -- i
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don't imagine that -- maybe it's a price. i don't know. >> kayla, are you still there? >> i'm still here. doesn't say much about it. it says we determine the value of your common stock to be $23.79 per share as of december 31st 2011. >> and that's the ten for one voting shares? >> yep. >> i don't know what to make of that. >> we'll still pour through. it's 200 pages long. >> may have to do with the secondary market currently. >> all right. we'll have full coverage, continuing coverage of the facebook s-1 filing. first move tomorrow when we come back.
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♪ where the sun never goes out ♪ ♪ and the sky is deep and blue ♪ ♪ won't you take me american flight 280 to miami is now ready for boarding. ♪ there with you fly without putting your life on pause. be yourself. nonstop. american airlines. final trade. >> p.o.t. >> ashland. >> gpn. >> got a couple chemical guys there. i'm going to huntsman. yeah, sure. going higher. >> and don't forget to check out the boys and girls harbor investment conference. that's tomorrow. you can buy a ticket at www.boys and girl

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