jamie dimon is not giving evidence on capitol hill on tuesday though the hearings do start. sue, it's later on within the month thahe'll be there. >> indeed. we'll have it for you then. simon, always a pleasure. >> always. "street signs" begins right now. we are beginning right now. and welcome to facebook friday on "street signs." trading problems though at the opening. a pop that didn't pop. and bankers taking some heat. complete and continued coverage of what happens with facebook next. also on our radar, trader-gate hammering jpmorgan again. new reports how big the loss and risk may really be. how worried is the street that there's another shoe to drop? we are digging for details in this hour. and music's new billion dollar man, mandy. in financial terms, he is definitely found what he's looking for. >> he's doing very nicely, thank

you very much. the facebook ipo obviously dominating a spotlight over the nasdaq. perhaps ob securing the conclusion of its biggest weekly loss since november with facebook trading higher after bouncing off the break even level multiple times but never going negative for the day. and we do not want to lose sight of jpmorgan, down 10% this week. almost 20%, folks, since the revelation of trader-gate. the bank has erased its gains now for the year. we are going to have more on jpmorgan in a little bit. first of all we have to break down the very latest on facebook. melissa lee and bob pisani are standing by for us. melissa, to you first of all. you were there down at the nasdaq. you like all of us i'm sure gazing at the board waiting for the first trade to come in. waiting, waiting. never came in. how badly does this reflect on the nasdaq? >> down by more than 3% and certainly we saw the turnaround in the stock as news of these delays started to leak out. this is what happened, nasdaq on

a conference call said 11:05 is when trading was going to begin. it was delayed because of communication problems and tremendous order flow. finally it opened about 11:30. to give you an idea of the flow we saw in the first 30 seconds of trading, 82 million shares of facebook did start. and then there are other separate issues that we're still dealing with right now. we are getting indications from a lot of institutions on the street that they have placed orders on the open facebook shares and as of right now, bob, i know you spoke to this as well, they are still not confirmed. they don't know if their orders have actually been filled at this point. >> it's a little bit of an embarrassment. >> yes. >> the only difference i have with you, melissa, i don't think it's nyse versus nasdaq. i think it's a market structure issue. i think the markets overall are having a tough time digesting something of this size. i'm not sure wouldn't have happened virtually anywhere. but it's certainly a bit of an embarrassment. traders have been yelling at me quite frankly saying where's my orders. i don't know if i've bought or

sold and can't decide if i need to buy more because i don't know if i'm filled or not. it's a bit of a problem. >> i think we're going to have debate ongoing until the close, mandy. that is was the facebook ipo successful? right now it's up about 6.5%. some out there saying there was priced to perfection because there was no manufactured pop. at the same time there are plenty saying this is a disappointer leading up to the hype. the scenes from 9:30 at menlo park when zuckerberg was high-fiving. take a look at mark zuckerberg as he addresses employees ahead of this ipo. >> right now this all seems like a big deal. going public is an important milestone in our history. but here's the thing, our mission isn't to be a public company. our mission is to make the world more open and connected. >> well, it is a milestone. and you can't deny the amount of wealth that has been created on

the wall street, glitches or no glitches. >> a lot of millionaires. >> a lot of millionaires and billionaires were minted today. >> absolutely. bob, going into this yesterday you remember you were on the show saying you hope that this ipo succeeds. nod because you yourself was looking to cash-in or hype it up, but because the market has been lacking mojo recently. we need something successful to get its mojo back. >> i hope you listened to what mark zuckerberg says because a lot of people say, yeah, sure, our mission is to change the world. yeah, right. mark zuckerberg, i believe, believes that. that's not hype. i think this kid is terrific. i want this company to succeed. i'm concerned about the hype. i've had some differences in opinion with some bulls on this issue on whether they're going to find special sauce to monetize all the information they've got. but i certainly wish them well. >> you know the phrase -- >> yes. delight on other people's misfortune. >> i'm quoting right now tradin freud da. people are slamming the way this

was done and maybe the execution, but to melissa's point, there's a lot of happy shareholders, a lot of happy employees. the stock is above -- remember, it was priced -- raised twice. >> above. $1.11. brian, insiders own it at $1.11. that's a happy day for anybody. >> not a bad call space certainly. >> no. >> $38, $40, who cares? >> remember, brian, we have been complaining about all the ipos that went public, sold a minuscule amount of shares to manufacture first day pop, we call that trading froi da. here we are with an ipo alloc e allocated significant percentage to retail investors, let the little guy in. and where is it? up 7%. didn't leave hardly a penny on the table. >> yeah. expectations a little over the top when you heard people saying anything less than a 50% pop would be completely disappointing. feels like we're coming back down to earth.

melissa, bob, thank you so much for that. gary kaminsky, let's get to you because i believe you have some new information. what have you found? >> mandy, we are right at these levels again. in the 11:00 hour after the opening of the stock there was a significant amount of sell orders that came in. i've spoken to some of the same people that sort of brought that to our attention. the anticipation right now is that the stock -- and we're just talking about today, the stock is now in the hands of a number of people who will probably not want to hold it overnight. it's going to be very important to watch what happens right at 3:00. if you look at that chart you have up there, it was right at that time when it traded around $38 that david faber came onset and confirmed there was $1 billion at that level with a syndicate bid right at that level. so i think we're at the pivotal time between now and little after 2:00 or 3:00, mandy, because there are a number of orders anticipate today start hitting the market in this name specifically around 3:00 today. >> buy or sell orders?

do we know. melissa's point so many orders everything was jammed up, but the stock hasn't done a whole lot. do we know what those orders are? >> the anticipation they'll be sell orders. brian, these are people that don't want to hold the name overnight. they were sort of day trading the position. let me just make one point on retail. it's very important we understand. retail got the biggest allocation on any percentage deal that i can recall in at least in recent history. retail did not sell. retail held onto these shares. the shares that were sold between 11:30 and 12:00 were the hedge funds that were selling the stock. retail did not, did not, execute sell orders. >> that is a very interesting point. gary, stay there right now. we want to bring in ken. going into this ipo, some brokers were saying we have retail investors ringing us up saying we want facebook at any price. >> right. >> okay. i feel now considering it's not exactly been a huge success that

a lot of people were expecting. >> you had some sort of way of getting that prize of this big pop. and expectations, managing expectations is a huge part of the whole scenario. a retail broker with a retail investor in many ways has got the ticket, if you will, the golden ticket. and says this is a band-aid. the market's been bad or you stayed with me through tough times. here, i'm going to give it back to you. maybe the client wanted it, maybe they didn't. they perceived it to be something it wasn't. >> i guess, my confusion is this. we read 30-to-1 over subscribed. that there were 30 shares that wanted to be bought for every one that was available. we hear about all these orders, but based on that information, it's good reporting, we would expect that the stock would just absolutely soar. >> hold that thought for two seconds. we have to get to bertha coombs. you've also got new information

for us, bertha. >> yes, mandy. as you know for the big institutional traders this morning there was trouble getting confirmation of the execution of the first ipo cross trade for more than an hour. initially nasdaq saying it was going to send manual reports. it has now sent electronic reports. and on its nasdaq trader website in fact is saying that all systems are now normal and all of those trading reports have been delivered. as those reports and confirmations went out, we did see a little bit of a dip in facebook shares. so that's why we're coming back. people are straightening out to see what happened on that ipo cross. talking to a rival at a different electronic exchange, he'd say, you know, it's not a disaster for nasdaq today. he'd give them maybe a b. it would have been better had it all gone smoothly and seamlessly. certainly not a disaster today and they have gotten it up and it is a lot of volume. >> bertha, thank you very much.

ken, to your point, where do the orders go? where are they? >> this is at hyped i guess as the biggest coming. the reality is everyone was clambering to get in. they found out if you can get some of what you want, you might not want it, but if you get all of what you want, you definitely don't want it. i think the head of the needle was gary's report this morning when he got a tweet from someone who said they got all they wanted. that was like throwing a bucket of ice on to the whole thing because every professional trader knows that is just not the sign of a great order book. >> talking of gary, bottom line here, gary, do you feel this is a good or bad day for the underwriters here? there are 33 of them out there. >> listen, it was a good day. they priced a transaction. they're job is to price a transaction for the selling shareholders and satisfy the demand. brian, to answer your question, why did we hear 30-to-1 times over subscribed? because people bought into the excitement. they wanted to try to get it and flip it. >> then they've canceled those

orders then. >> they didn't cancel the orders. kate kelly and i both heard people put in for 300,000 shares of stock what their institutional brokers would do is put them in the book for 500,000 hoping they can satisfy the demand. guess how many shares they got? they got 500,000 shares. so there was a lot of sorting out that had to take place in the first hour between how much stock people really wanted and what they thought they would get and what they actually ended up with. >> let's throw this forward, ken. if someone came to you and said i'm kind of interesting in facebook maybe for the long-term, what would you advise them to do? wait until the dust settles after a few weeks? >> absolutely. i just wrote a piece for forbes saying exactly that. to gary's point, i think the underwriter did yell men's work here. took a while for the market to say where it should have ultimately been priced because of supply and demand. >> everybody says facebook fizzles, which i disagree with completely because i would argue then that based on

supply/demand, at least right now, we're up a couple percent. it was a success. the underwriters did their job. they didn't under a lot. so we go up 50%. the stock didn't tank. everyone seems to be getting the stock they wanted. isn't that the definition of a successful public offering? >> not only a successful public offering, a success for capitalism and the american dream. the share wasn't a lottery ticket. and a lot of people that lined up to buy a lottery ticket got disappointed. wall street perception becomes reality. as soon as it was perceived it wasn't going to be the lottery ticket, people said let me go away and play another day. >> it's like dating. you want the girl until she agrees to go out with you. >> i think the average person would be quite happy with 6%, but they were unrealistically expecting more. >> mandy, that's the point. tomorrow's headlines will read facebook went public, retail participated. if it closes up 6%, that will be

the story. >> thank you, gary. >> there's already a sell rating on facebook stock. yes, a sell. let's bring in the analyst who made that call. brian wiser from pivotal research joins us. brian, what is your sell thesis on fb? >> well, i guess, you could say we like the company but not so much the stock. you could also say it's complicated. >> complicated why? >> in the context of facebook term. there's five different reasons we think the company is overvalued on a fundamental basis. first of all there's the operating expenses which have been rising substantially as the company is shifting towards an orientation around large brand and servicing them is going to have a lot of costs. certainly adding the data centers and the capital expenditures associated with that, they're running at $2 billion a year and rising. we also think the ad model though very promising is unproven and adds a lot of risk to the overall business. and the next thing is acquisition risk. we saw the instagram acquisition and effectively in an arms race

with google. lastly, there's an overhang with all the restricted shares that come off of lock up. over the course of this year another 1.8 billion shares, that's four or five times the number of shares trading now that will come on to the market or could come on to the market over the course of this year. all-in, we think the stock comes back to earth. on a risk-adjusted basis, we have to look at google as a best comparable. and there's no way the stock can be fundamentally valued -- >> when you say come back to earth, what level is earth? >> well, $30 is our price target. >> and then you would go to buy at $30? >> that would be a hold, i guess. $30 would be a fair value. in other words, if you believe that our valuation on google at $820 is fair, you should believe that facebook at $30 is fair. now, that is to say google's a long way from $820. >> they have a lot of money though. when you talk about threats, i mean, if they wanted to get out there and they wanted to take out their rivals, i guess instagram is a good example.

if they wanted to take out their rivals, get rid of the competitive landscape, they have the fire power to do this if they've also got the savvy to do it. >> they do have the fire power to take out the rivals, but the fact is they would have to spend a lot of money and for businesses that don't have a lot of revenue. we don't think instagram was the last acquisition of its kind. >> we have to leave it there. thank you for joining us. >> thanks very much. >> we have a market flash with scott wapner. >> markets on track for their worst week of the year. we have some confirmation f you will, of that weakness. take a look at the dow jones transports average. it's dropped now below its 200-day moving average. it's a significant part of the market. certainly something to keep in mind. if you want more confirmation of the weakness not only today but this week in the markets, the russell 2000 as well has now dropped below its 200-day moving average. couple things we'll be watching as we head to the last couple days of trading, guys. >> scott, thank you very much. now to a man who helps manage a couple hundred billion dollars.

what does he think of this facebook hoopla? does he think about this facebook hoopla? facebook. >> facebook. >> that's my question. >> everybody who wants some knows all about it and has had a clans to buy $38 to $41. everybody that wants it, got it. you can't assess on fundamentals. so what the investor does with it depends on what happens three months, six months out. short-term there's not much of a play anymore. >> with the information we have at hand, do you think 12 months from now will be higher or lower? >> that's a very interesting question. my guess is more likely lower than higher. i can't see them making the kind of move that would make them the dominant force on the web which is what the current price suggests they've got to be. to a market cap of over $100 billion, they have to be simply more than picture sharing and anecdote sharing. it's got to be something to do with how people access the web. very uncertain.

very viral. who knows what happens. it's most likely that they won't fulfill the growth dreams that growth stock investors -- >> ads sales are already decelerating. >> what you said the last three or four sentences could have described greece. uncertain, viral, no one certain of what's going to happen. >> well, they don't have growth dreams. >> they do have dreams. that's about all they are. i guess i'm boring. i understand facebook is a big deal. i'm looking at the g-8 meeting. i'm looking at a party basically saying whatever to the ecb and to germany growing in popularity. wondering where this is all going. we hear it's global final doom if greece leaves the euro, but there's a vote which may determine on june 17th, we should be talking more about that. so let's do right now. >> let's talk a bit about it. this week you've seen u.s. equities down. you've seen european equities down more. that is actually the right reaction because greece getting into trouble is not a surprise. it's been in trouble for over

two years. if we go through to another default, if it becomes a d disorderly default, that's what the politicians have been warning is possible the next couple weeks. really i think europe is best divided. and the u.s. market is suffering from several negatives. the negative tail risk on greece, the fiscal cliff coming up and the possibility of a sharp slowdown in the emerging markets. those are all negatives that mean that this last month or so has been pretty rough stuff in the u.s. equity market. >> and saw on the news this morning that the european commission and the ecb are actually actively planning a contingency plan. they're putting in place hopefully a plan b just in case -- >> the marshal plan? >> the marshal plan. >> what is their plan? >> we don't know what their plan b is but they're talking about it. they're trying to get a contingency plan in case greece does leave the euro. so what we have here is essentially they're looking at it as a reality. >> the biggest contingency they

need to watch out for is what it does to the banking system because although this is not a surprise to anyone, they were warned. they should really -- banks should really know that further writeoff of greek debt, devaluation of currency held by greeks is possible. nevertheless, they still have positions there. so what happens if greece is a disorderly default? you need to backstop parts of the european banking system. who's going to do that? that's really i think where the contingency plan has to be. >> survey after survey shows the american investing public is still sort of sanguine on greece. it's over there. >> it's small. >> it's the size of delaware. >> yeah. that's right. >> it's over there. >> economy smaller than philadelphia. >> yeah. why should they care? >> well, they should care because they've borrowed a lot of money and the banks are dependent on those borrowings for their capital base. so the european banks are having to shrink their balance sheet because of the hit that's likely to come on their capital. the other thing of course is the

precedent. if greece gets to default, what happens to spain, portugal, italy? they have debt fundamentally unsupportable. that's where the longer term worry is. >> if i bring this back to home and what this means for us, we saw a moment ago the s&p dropped below 1,300 around 1,299. we have been in down trend for the past ten or so trading sessions. what do you do? are you accumulating or deploying fresh capital on the way down? or is this a time to go real cautious and raise cash? >> i'm firmly of the view on u.s. equities the right thing to do is keep up your weight, buy on setbacks. it is small, it is a ways away. the u.s. banking system has been through the fire. the u.s. is capable of having a sustainable albeit slow recovery. so i would favor u.s. equities particularly domestic-oriented ones. >> thank you so much for joining us today. >> thank you. >> pleasure to have you on the show. >> all right.

>> okay. coming up, the u.s. has the most facebook users. so which country, therefore, comes in second? the answer when we go trading the globe. >> and as we go to break, take a look at the big "street signs" week ahead. you've got lots of data, lots of earnings, some conferences including one with jpmorgan chase, which is by the way on monday. that tiny font beneath monday at the part non. back in two minutes. that bringing you better technology helps make you a better investor. with our revolutionary new e-trade 360 dashboard you see exactly where your money is and what it's doing live. our e-trade pro platform offers powerful functionality that's still so usable you'll actually use it. and our mobile apps are the ultimate in wherever whenever investing. no matter what kind of investor you are, you'll find the technology to help you become a better one at e-trade.

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all right. something we like to call stocktology. digging in to check the market internals. advancers 892 decliners 2,076. let's check it out nyse. there we go. 128 new lows. 7 new highs. nasdaq, 5 to 137. >> you know what, just in a few little accounting stats for you, i think we're on track for the 12th loss in the dow out of 13 sessions. it's been quite a bad run. i think the last week has probably been the worst week we had. and other global markets as well so far this year. in the meantime, just because we know you haven't had enough, let's look at the shares of facebook.

of course they ipoed later this morning than expected. facebook's 900 million active users, more than 80% of them live outside of the united states. america has the most users. and we tease this, which country has the second most users? it is brazil. they come in second. they have about 47 million users. so what ripple effects does this social ipo have around the globe? let's bring in tim seymour, mr. global himself. host of cnbc's "trading the globe." i think we're all kind of done with facebook, but i am going to ask because it is an interesting question in terms of looking through the global prism of facebook, is there going to be a ripple around the world from this ipo in terms of it's not going to effect some of the social media or online companies in other countries? you know, baidu, run run. >> mark zuckerberg said their

mane #main goal is to connect the world. one of the things we've seen especially in the arab spring and the protest in russia and emerging world in general, the ability to galvanize the population and make social change is clearly having an amazing impact. when you think of brazil as a place i don't think has that type of social full fullment buzz an unbelievable consumer culture, facebook has a lot of room to grow in these places. google actually owns the number two social media network in brazil. so i mean they are trying to, you know, encroach upon facebook's global position here. >> one last question on facebook though. >> sure. >> could it ever succeed in china? it isn't in china right now and they have their sort of facebook equivalents. could facebook ever get to entry to china considering you've got concerns about privacy here in the united states, let's face it, if you're a facebooker in china, all your information could potentially be available to the government. all of your friends, all of your

family's information could be potentially available to the government. >> and that's why culturally you're not so sure that it might be adapted by the population quite as much too. but i think they have room to run. but i think when you look at renren and cena. these are the legacy players in china right now in the social media both kind of your facebook and your twitter. i do think that the facebook and kind of the advertising market for social media in china is much, much smaller. it's $150 million. facebook alone generated $3.7 billion alone last year in revenue from social media. i think it's time but the facebook bid has clearly gone around the world this week. >> one last question because we've had some bad scores in terms of the markets in the last week. asia pacific, ex-japan down 11% so far this month. is this an emerging market problem or a european or greek problem just spilling over? >> what's amazing for guys that have been in this asset class like me for 15 years is actually the em balance sheets are better

than the developed world. if you look at korea, last night it was down 3.a%. it sold off into the close. it's given up all gains for this year. yet korea to me is the new japan. as an industrial country, it's in a fantastic position. what we're seeing here is absolutely risk contagion. given up all of its gains this year. brazil might be the place i think is the most outrageous examples of fundamentals versus performance. i think that's something we'll talk about tonight and give people ideas. >> 7:30 p.m. eastern. >> right on. >> we'll catch you then. be sure to catch tonight "trading the globe." all the best places on earth to play your money. an all new episode of the show right here on cnbc. >> all right. up next on "street signs," a cautionary tale for the new facebook millionaires. hear from a man who's been exactly where they are today but threw it all away. him and his unbelievable story and advice after the break. >> and as we head to break,

check out a couple friday winners. salesforce.com up about 10% today. the biggest winner on the s&p in fact. and yahoo! every dog has its day. it's up over 5% or about 5%. one of the top gainers on the nasdaq. do stay tuned. ♪ ned. ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises.

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welcome back everybody. what we're looking at is a chart of facebook, which of course ipoed today. $38 was the ipo price. it's currently just above $40. it's higher by 5.5%. in just a minute's time we're going to take a look back at other big name tech ipos to see how they are doing now. but first, let's get to bertha coombs who has been following the facebook trade all day. it's been quite a ride, hasn't it? >> quite a ride and here we are at 2:30 eastern. over 400 million shares have traded hands so far. not all of it without a glitch. little bit of a glitch in terms of the confirmation of the execution of that ipo trade for the big institutional traders this morning it took several hours to clear that out. it's still not exactly clear what it was that happened, but

within the hour they did finally get confirmation of those beginning trades. that's one of the things that's interesting. facebook has held in. but take a look at the nasdaq omx's shares. they were up ahead of the ipo. this was certainly the ipo of the year if not really maybe of the decade at least so far because of its size. really this is the mother of all ipos in terms of the float that they had out there and the huge interests that we had from retailer folks. so the little bit of a glitch there has certainly taken a little bit of the shine off of nasdaq shares today overall. another bit of collateral damage for zynga. zynga of course is a big factor within facebook, provides about 12% of the revenues to facebook. the stock had to be halted twice because of big moves in the stock. those trading halts that they have, the circuit breakers that they have now twice it was halted for several minutes.

it has now resumed trading as you can see. today it's down even as facebook is up. what's holding us up here at the nasdaq even though we're down on the day? what's interesting is apple today gets a little bit of good news. apple is flirting with a bear market territory off more than 17%. an update today. and yahoo! which i know brian is going to talk about, but, you know, that's the forgotten and bottled internet. it is up today on the possibility they may finally have the deal with alalibaba. >> that's a good thing. good thing for yahoo! today, bertha. good to point out zynga as well. certainly the most directly facebook related name out there. all right. well, now let's take a walk down ipo memory lane. brian shactman has a look at how the top three tech stock ipos have fared in two big names no longer with us. >> no longer with us. thank you very much, brian. facebook friends if you thought it was a good idea to get some ipo contacts. let's open the ipo diaries.

since yahoo! still makes news these days as we just heard, way back in april 1996, do your "wayne's world" it priced at $13, closed at $33. a gain of almost 154%. compared to today it's pretty interesting. yahoo! has flit five times. in fact split in four straight years from 1997 to 2000. it might not be minting new millionaires these days, but plenty of people did great on this one. even the retail guy who bought it at $33 on day one. yahoo! not as dramatic as two chinese internet adrs in december of 2010 yoku priced at $12.80 and closeds a $33 pnts 34. 161% gain where at youku is right in the middle now. retail investor bought it on day one, most likely he or she have not reaped much of a windfall. neither of these come close to baidu. it closed at $122.54.

that's a 354% gain. just unbelievable. now back in 2010 it was at $700. had a 10 for 1 split. if you bought it at the top on day one, it's pretty much the same price but you have ten times your original share count. the other thing we had to do is peek at huge opens for two companies no longer with us. the one over the left shoulder. broadcast.com, 250% in 1998 swallowed by yahoo! a year later. then we have the globe.com priced at $9, closed at $63.50. a 600% pop in 1998. to that date it was the biggest ever. ten years alater out of busines. sully, who did it make a billionaire? >> mark cuban. >> mark cuban. >> $400. >> i said you shouldn't comment on this. maybe we should let mandy comment on it because she might have had more difficulty.

mandy, would you have gotten that? >> not a chance. there you go. back to the $1,000 question. >> he's scary, but famous and rich. >> you can look as scary as you like when you're that rich. with today's facebook ipo, thousands of people just in a flash became multimillionaires, some even billionaires. but the saying goes more money, more problems. what do these new millionaires need to do to hold onto their newfound riches? we have both sides of this story covered. we have the disasters that come along with losing it all, but also the sunshine. a well-managed ipo can bring. we're doing to hear the dark side in just a sec. first start with david greenberg. he was on the nymex ipo and became a very rich man the instant it priced. david, i bet you understand what some of these people out there at menlo park have been feeling over the last 24 hours as they've suddenly gone from zero to hero. what does go through your mind? >> each instance is very different. nymex was supposed to come out

at $59. so we actually went to the stock exchange feeling the price was going to come $59. the first print was about $120. went up to $150 that day, settled around $122. so there was a moment of euphoria and really awe just to be able to realize what just really happened. >> uh-huh. what's the first thing you should do? >> first thing you can do is take a breath. you need to realize that you need to get everything in order. first, take care of your kids. take care of your college education. put that money aside. forget about it. >> uh-huh. >> second, realize that do not put all this money in one place. and really as a friend of mine pulled me aside that night and said this is a lottery ticket. no reason to blow it or try to double it. what i did was i was very conservative. and the people that try to double what they just did are usually the people that wind up in the most trouble. >> greed is bad. >> greed is very bad. greed is very bad. >> when is greed good? >> well, as a trader, you never want to be greedy at all. you want to be risk/reward on

every issue. the risk/reward comes into place doing well on an ipo. so many traders i know going into the stock market if i said i'll give you $100 for your stock, they would have been thrilled. but when it opened at $120, they're like this is a $200 stock. those people have held on all the way down. >> we have to get to the other side of this. the disaster side -- oh, okay. we've got to go for a quick market flash now from scott wapner. what do you have? >> i'll make it quick. more unflattering data on the weakness in the market. crude oil closing below $92 since october. the dollar made such a strong move over the last 10, 12, 13 days or so. it's been weighing on commodities. there's a look at crude oil below $92 for the first time since october. $91.47. >> thanks very much, scott wapner. okay. david, we have to leave it there. thank you very much for joining us. >> thank you. it's been a pleasure. >> glad you held onto your money. good for you. >> thank you. >> can i have some?

>> sure. >> no, it is a good friday. >> i'm just taking your race car. we'll be good. >> what's left of it. so that is the sunshine version of becoming an instant millionaire. good job. up next, maybe more on the darker side, as mandy said. james alton has some advice. i think he's coming up. there he is. he'll be up next with his story and his sweet soho crib coming up. it's a big week on cnbc. starting monday when wall street's power houses report, nobody breaks it down like earning central. housing on solid ground, what the latest numbers say about america's comeback. goldman sachs under the investor spotlight at the annual meeting. and summer sizzlers. stocks that pop when the temperature rises. and too prime for ears. go inside a multibillion dollar black market and a look at a man who defines american style. like in a special ops mission?

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they're pulling the $10 million because they weren't effective. you saw the headlines saying we think super bowl ads are effective but that this year they appear too expensivexpensi. that's gm not advertising at least right now on the super bowl. a lot going on with gm and that stock by the way the biggest ipo of all time. >> and then visa. >> was gm second? >> yeah. and then of course the one we had today, facebook. people making comments about the timing of general motors announcement about pulling its $10 million account with facebook advertising. let's talk to bill griffeth. >> general motors is welcome to advertise on cnbc. we're a very effective advertising vehicle. i digress. jpmorgan lost nearly $30 billion in market cap since the massive trading loss was announced. is it time to buy? are you better off betting on

the other stock we used to talk about nonstop? namely apple. we have a debate on apple versus facebook coming up. we'll look at whether facebook's ipo underscores a troubling trend in the economy. and of course we'll watch to see how shares of facebook trade in the final hour of trading when maria and i see you at the top of the hour. see you then. >> we're looking forward to it. you heard the sunshine that a successful ipo can bring. now it's time unfortunately for the pain. it is our disaster du jour. this is a cautionary tale on how becoming an overnight multimillionaire can turn into the disaster of a lifetime. james made millions in the dotcom days but lost it all in just a matter of months. james, very good of you to come on and tell a very candid story. >> no problem. well, basically, you know, once you -- i've bought and sold a couple companies since then. this is the first company i built and sold. and suddenly you feel this rush.

like you're this genius who can do anything. and like you said, greed is bad. not only did i feel like i could double the money, i felt like i could multiply it by ten. i felt like ten million wasn't enough, i needed a hundred million in order to be happy. i was like a drunken rock star. i was buying everything from penthouses to artwork to more and more internet stocks during the bust. and gradually with that kind of attitude, you're going to destroy your life and ruin everything. >> that's really sad. what would you say then to those who have just become multimillionaires? >> it's not necessarily sad. i don't regret because i learned a lot and it was a deepening experience and i've built more businesses since then. but the main advice i would give is that for many of these people it is like a lottery ticket. so take a step back. and the most important thing i can say is for one year do absolutely nothing. don't move. don't buy expensive artwork. don't, you know, stock any

girlfriends or anything. don't buy fancy car. just not to say a fancy car is bad, but keep calm. don't do anything you wouldn't normally do. don't do anything that takes you out of your comfort zone. >> james, i like you for a lot of reasons. not the least of which you're very blunt. you put it right out there, which we all appreciate. so i would imagine that second cousin eddie, aunt jane, all came out of the woodwork because of your great idea. how do you say no to friends and family? >> people would pass me on the street and ask to borrow money. so the thing you ask no matter who they are from your parents on down to your cousins to your distant cousins is you say, listen, i have to ask my financial advisor. i normally would love to lend you any money, but i've got to ask my financial advisor first. it's too complicated for me. and then your financial advisor should always say no. and then the other important thing is your health. right now you've just spent

years and years building a company. and this is the payoff date. so you feel like you can relax. but that's also telling your body, okay, the adrenaline is over. the stress is over. now it's time i can get -- it's okay for me to get sick. i've actually known people who have literally had heart attacks right after selling their company. focus on your health. >> james, we've got to leave it there. thank you so much for coming on and sharing that story with us. hope there is some people out there who are instant multimillionaires and are listening. >> look at the market session lows. dow jones industrial average down 70 points. live trade on jpmorgan because that's really been, folks, today facebook will remain a big story, jpm's been a big story all week. down 60 cents to $33.33. jpmorgan essentially flat for the year, mandy. jpm pretty much wiped out more than $10 billion in market cap, i think well more than that now wiped out its gains for the year. >> yeah. we're going to take you inside

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remember facebook did touch its offering price of 38 bucks at 11:49 a.m.

before coming back a lot of reports about what kind of extra firepower maybe a 2.4 billion that the underwriters have to support the stock. mandy, remember, a lot of people bought this stock above where it is now. we saw trades at 41, 42, above that. >> right. >> so there are people right now who even got in right at the open that are underwater on their facebook stock. >> right. and my stock draft pick i supposedly have to buy it at the last trade of the day where it closes. now to the other big story of the day, in fact, you know, for the week. jpmorgan's multibillion dollar trading loss. ceo jamie dimon has agreed to testify before the banking committee. the initial loss was reported last thursday, nearly wiping out all of the gauges for the year. will the bad news continue to get worse? we'll ask a senior special writer at the "wall street journal" who wrote the front page story about jpmorgan and

jes jes jessy isinger. when you see inside jp's blunder, i'm wondering if they're thankful that maybe facebook distracted the eyeballs and maybe took the glare away from the jpm story, that do you think? >> maybe. but i have to tell you on wsj.com today it's like the most-read story. so i think a lot of people are still paying attention to jpmorgan's blunder. >> and is it going to get even worse? >> i think we still have to see. i mean, as i say in my story, jamie dimon told his executives put on your jpm jerseys, we're going to take a lot of hits. i think he's expecting to become the poster boy for more regulation. and greater scrutiny in washington. so we're going to see a lot more scrutiny of the bank. but i have to tell you after spending most of the day wednesday on the 48th floor in the park avenue headquarters of

jpmorgan, everyone there is giving that unit that's at the heart of this scandal, the chief investment office, a whole lot more scrutiny. they all believe they fell down on the job by not putting it through the usual rigorous standards that are in place at jpmorgan chase. >> is it possible we may never know 100% of the truth here about exactly what went on? >> oh, yeah. i think it's highly likely we won't know unless we get really a public accounting of it or an investigation. jpmorgan will -- is very unlikely to detail all of its trade and there were lots of complex legs of it. and we're unlikely to get a really good public accounting in congress and i doubt the s.e.c. will do much of an investigation. so the chances of us knowing this is nil. >> there's the initial version and the real version behind the scenes. let's paint the scenario where if the initial version is true,

what are the implications of that? >> well so if jpmorgan and jamie dimon just came out of it rye athen it's disastrous for our understanding of jpmorgan and jamie dimon prowess as a manager. the risk manager of jpmorgan supposedly the best on the street, the best in the country is no longer the best in the country. then we have to worry about all the assets on their trillion dollar balance sheet and worry about the $71 trillion of notional derivatives that they have. >> monica, do you believe that this trade may exist on the balance sheets of other banks right now or a similar sized trade? >> i think a lot of other banks have done what jpmorgan is which they have used the investment offices which originally were designed to hedge the potential losses they may have in real bank activities which is making loans and having branches and things like that. and with the low interest rate environment for the last several years, they have looked at things like this to make money.

so jamie dimon conceded to me and i think to others that we took our eye off the ball. he got so comfortable watching this unit continue to make money that he didn't watch it, didn't scrutinize it the way he does. i know on the other units that he supervises, i was there and they're preparing for his, you know, business reviews next week. and his people there have monster pages of documents to review for him. >> apologies to jump in like that, but we're almost out of time. thank you for joining us. all right, up next, kind of a fun story around facebook. why you can call that guy, u2's a singer a facebook bff. you may rotl on this one. it's very important to understand

how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies.

hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important.

well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. all right. there were wort -- reports today that that ipo could make u2's bo know the richest man on earth. they paid just $90 million, mandy, for the shares back in 2009. >> well, those shares could be worth more than $1.5 billion, but just a short time ago he laughed off the reports on msnbc, telling andrea mitchell he's not yet a billionaire, but is still a big believer in facebook. >> they're an amazing team. they're a brilliant team, and they really care about this