moi. >> yours truly we'll watch and see what happens today. a huge day for the mark, you got tariffs kicking in at 25%. market is down 113 what's your guess? >> i am sure you will join us next week, right now it is time for "squawk on the street. good friday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer and david faber. complete coverage all morning long going into that opening trade. today is the day uber sets to make its public debut, the io crisising towards the low end expectation range.

the company at $75.5 billion it has been said already it is a great day for capital m capitalism >> this is as company that people are going to take, talking about all the great things in terms of the long-term due of uber and no quick pop i didn't hear the word journey but, it is very clear that this is one of those things where people are saying yeah, this is a big deal, i want to get back in individual stocks let's hope they don't screw it up like facebook >> a little color from people in the market at this point obviously a large deal over $8 billion last night i heard 40% of the book is with the top ten holders. they're talking about having structured and much better fashion. one of the concerns that uber

has had is what we saw with lyft that was creating selling pressure sorrells and icahn >> whatever you want to call it. >> was not him they tried to make sure it does not happen here. >> there are ways to convert they're trying to mistake suake does not happen and constructive the cfo has been trying on this. >> so he scrutinized to where it went to. that's very smart. >> we know you may be a flipper, you are out. they can't control the people who watch our network or ridden in an uber had a great experience and want 200 shares they can't control those people.

we don't know whether those people are using market orders and say to themselves, i want to a piece of great technology. that's the real enemy of the deal >> dara talked to andrew sorkin today. some of the lessons from lyft in recent weeks talked about hopefully the plan is for losses to peak this year and talked about a path of profitability. >> we do reinvest profits aggressively in new business line we are comfortable when we look at the portfolio of business that we have >> lyft this year for them is peak losses is going to take place this year. >> can you say the same for uber >> that's our intention. >> that's the line

well, look, i think it is a line that you can defend because we don't have to worry about it right now. what's interesting is you price it in the middle say 45. then if you are a giant mutual fund, you can say listen, i can buy some more opening and get my full position on and get a good average. they'll not do that if the retail investor comes in and controls the opening and it is too hot. that's another tension that's going to be happening this morning. you know what it is like they'll ask if -- they'll ask to release it could you give us some stock we have to find a way to save this retail demand so we don't make it so it is a fiasco. >> lyft. >> facebook is another one we have a lot of bad ones. >> we have quite a few backwoods o good ones.

>> beyond meat is not going to traed like that. >> this is one of those whether it is worth 45 or $8 billion >> you are not going to lose money? >> i do think last year was not a good year for these guys and we can give them a good pass but they did not do well that last quarter was not a good quarter. it reminds me of something facebook brought to life >> that was completely out of script, do you remember? it turns out they're moving over to mobile when it is not doing that well. david, it is coming in hot, is it that's how sometimes i feel about this last quarter. it was not a great quarter it was promotional

we can have all the coronation that we want here what i think is interesting is that you got a situation where -- dara is a mature company >> he did, he did ask about comparison of amazon >> sure they have competition and they have not doing that well and they got uber eats up against grub hub whose stocks have been terrible they have uber freight that they did not talk enough. it is a day i have uber on my phone and i will take uber over anything the people of the app, they want to own the stock there it is. 91 million users a month that's based on potential

investors. >> still 1% or 2% overall. >> selective markets >> their idea being what they wanted replaced the individual cars >> that's the whole idea >> ownership, right? >> for any variety of ways and not just for automobiles but new mobility >> maybe it won't be a prescription economy for cars where we won't ever have to worry about ownership and parking and insurance and all those things that really are, when you beuy a car, you don't realize. >> for the 4% of the time that you are using the car. >> that's why i was listening to andrew and dara, boy, this makes so much sense. it is such a compelling story but they're losing a lot of

money. >> right and will continue to do so for a good time. no deal, a new round of tariffs on $200 billion of china on goods kick in. an eventful morning when it comes to the president's twitter storm. first one, quote, "tariffs are being paid to the u.s. by china on $250 billion with goods and products, these massive payments go directly to the treasury of the u.s. we know tariffs are paid by importers and passed onto consumers. >> the base likes the story line i think it is a bit of a situation. if you keep on saying it over and over, a big fit --

>> or a big lie. i don't want to go there those who supply china for the final product that comes out of china and those that sell into china and given expectations, they're going to raise their own tariffs of the 5% to 10% range of the number of goods they have i did go back and i did not look at lighthizer speech it was the testimony it was the end of february >> yes the house committee ways and means, it is all there when you think of what they wanted and what they were not getting significant structural changes allow for new level plain field we need new rules and any agreement must be enforceable. the disappointments resulted in promises that were not counted >> you are the president, you got that hard line and you have

someone saying the companies that are mostly hurt by this let's use dollar tree because they can't -- it is dollar general. 5 below, it is not 5.50 below or union pacific. these stocks are all up very big. if you are the president, listen if this is so bad, whys are the companies so linked with it doing quite well it does get -- hey, no one is really getting it. >> except for the biggest weekly drop of the year, 4% of the all time high. i look at that the market was held. that's held. not today. >> are you surprised we are not down more. should we be down more >> well, i think there was overall a sense that uber which they raised the money for uber,

i was looking for big accounts selling for uber and at the same time we get disappointed with tariffs and the selling for uber came and went. it just went they finished and they had that big day on wednesday where they sold everything. that was the end of that the thing that today is that people going back. okay, united technology. people are struggling to find a stock like caterpillar or maybe app apple? there are a lot of people talk about how badly we can get hurt. it is the farmers, i do remember the farmers are not, they have been able overtime to be able to get substance. so you don't really have identifiable interests that were sitting here saying wow, are they going to do badly today >> soaring prices are at a decade low the president suggests buying directly from our own farmers

and sending it to starving nations in a form of humanitarian aid >> i read that i am for that. >> why not >> giveri >> giving farmers more money if you step back for a moment and assume that we don't get to a deal any time soon, it would seem to be really possible at this point >> yeah, take the time and increase in tariffs and all imports on china and take a little time for the federal to register and various things they need to do to make sure they don't get sued it got to be not good for global trade and china and the u.s. >> business confidence and cap ex plans >> how about if you plan it is an ongoing process and we'll get there and hang in there and more and more companies move out of china. one of the big issues, so-called partners, our president attempt

for the people who love europe what they do is they sell into china. a lot of people when you meet with them. our allies, if we had just worked with our allies >> a lot of people say, not on all side if we kept ttp, we'll be in a better position. >> trade proposal originally is a big partnership and obama could not get through the senate and unsure if anybody could. we pulled out of it. >> anyway, let's give them a pass what's next? >> they're selling it to china from spartanburg the president has a narrative and the chinese are hurting. the chinese are hurting, we have good employment and gdp. the problem with all that is it is true. >> true up until now

yes. >> there is a lot that for every month that these tariffs kick in so maybe half a point by the end of the year. well, there is some people saying this is going to cost us 900,000 jobs he can say well the fed is ready to cut and we got -- >> bipartisan support. >> what does he have bipartisan support for? >> look at dara with stacey cunningham >> i was talking about chuck schumer. >> sorry >> schumer is more proth this. >> see it and say it that's our first rule of television david saw it and he said it. >> i am sorry. >> schumer is the ponly guy tha says stick it to them.

what was it? whining chuck. >> i think crying chuck. >> who's whining >> my wife said last night i have been whining. i took it hard >> there is a look at dara and stacey cunningham at the nyc, i imagine they'll make their way to the podium or if not to post 5 where this will be worked on on an issue that i don't think we have high expectations. >> no. it will open today i am told it will open before game seven of some series >> that's what we are counting on >> should we just walk over? >> you want to get as mic and go over >> i have not done that sin since '78 but i am ready >> of course, we foknew dara wel

from his day of expedia. >> of course. >> remember the drama of who would get this job and the names floated. >> of course, meg wittman and i recall meg going on every quarter everyone when she clearly wanted this job. >> how is the ge head quarter doing? >> i missed that why is it moving out of boston there are reports they are looking to sell. >> they bought a lot of real is sate in boston >> the president honors the reds sox. how do you feel about that >> well, they won the world series >> all right, can't hold it against it there they are and it is very excited. >> stick mic, which one of you want to do it? >> scissors

>> jim is going to go over there you go >> look at him he's some gorilla. some tactics by jim today. >> how are you my friend >> congratulations to you, how is it going so far >> it is thrilling and so cool to be here you interviewed with andrew. >> he gave me a hard time. >> we want to thank you for being here you are going for the long-term. >> absolutely. >> it is about where we are three or five years from now what is it like? i don't ask that but this is not -- what is it like to be here >> it is spectacular and it is great seeing the uber brand all over the place, it is just a little bit better. when you think about what people are talking about in terms of when you will be cash flow

positive, not just margin contributions. >> yes >> do you think people are saying, you are saying please let us have time >> i think that what i am saying is when you are dealing with the $12 trillion addressable market, it makes sense to lean forward and our investor basis an investor base that wants growth. they see it the same way we do >> are we not talking about uber eats and freight which you introduced >> ahead of eats over here we are talking about uber eats >> i do, i talk about it all the time >> the idea of a lot of people got turned on this morning that it may not be an ownership moment anymore the ownership theory that you gave to andrew that i just love. maybe that's how we'll view cars >> more and more you will have transportation services that debundle cars.

as the car is debundle, less and less generation want to own a car. >> how much do you feel today have a deal go great you are in our cell phone. we all want you to win what does it mean to have that kind of pressure yourself? >> today is one day. i want this day to go great. it is about what we build for the next three or five years there is plenty of pleasure. >> there is tony west. >> this is one of the most ethical companies on earth congratulations, have a great one. thank you very much, back to you guys carl and david. >> jim, great work jim cramer getting dara, he's there to about sign the book and making their way to the podium and getting the opening bell

done you saw the split screen between dara and craver and travis kalanick working his way up possibly to the bell but, i does highlight some of the narrative and the tension that has been written about between the two and the founders and the creator of the technology that made the company possible there is a lot going on here on this set, guys what's happening >> the cfo right here and we got two of the founders as well, guys congratulations. important day here for you give me your reflection, given you are the man who came up with the idea itself? >> it glad it all worked out >> thank you >> you just glad it worked out >> what did you think when you look at the crowd, here is a

company that was an idea many years ago. >> you're ryan >> very fortunate. >> it is amazing opportunity for travis and garret, they gave me an awesome opportunity, i am just very lucky. >> how are we looking on the books today? you have been focused on it. i said on air of how you have been constructing it and what it will be of long-term holders and flippers >> we have been building this company for a long hall and you build the company overtime it is important for us to make sure we have the right shareholders in. we did focus a lot on that, david, we'll see how it goes you don't know how things are turning out. these guys and travis building a great company though >> what do you thisnk we'll see in the opening today >> you know this better than me. it is great for myself to be back here. it is wonderful to come back

>> we'll take a close eye on everything here and let these guys go. they got to get up to the platform congrats to you today, nice to see you, congratulations thank you. >> good work david, you can see 180 million shares let's get to bob pisani who we'll be talking to a lot. we are at post 5 this is citadel and this is where all the action going to be peter is going to be handling all the trading. we don't have the time and don't expect one any time soon certainly after 11:00 a.m. eastern time you know what's the most important thing about this it is getting done that's the single most important thing. this is not a normal ipo the offering is huge

$8.1 billion 8.1, that's a lot for the market to absorb. the fact that it loses money or an issue for lyft as well. it has been trading poorly as you heard. dara was telling andrew of the fact of what may happen to lyft and could cause them to be a little bit more conservative in the way they are priced and the extreme market volatility. we had no idea whether the market is going to be up 500 or down 500 a weak opening may have also influenced the way the price these stocks are traded early on it is the right time for the mark overall 13 ipos. the busiest week in three years. we had 42 ipos this year the important thing, they are up 22% on average that's much more than a typical number 13% to 15% is what you usually get after a while. that's a lot more than we had

normally here. we'll keep an eye on what's going on on the trading at 9:45. we'll talk to stacey cunningham and get a little preview here. we'll talk to one of the trader that is are right here and get some previews of what's going on this is a process and we are building a book. there is probably 500 institution investors with $8 billion so there is a lot of money out on the street so it will take a little while to open this it will be exciting here, we'll be here throughout all the action >> bob pisani is over with us at post 5 as we get set to watch uber open for this morning we make a big deal out of every large ipo. this is a particular company where you believe the future of cars delivery and mobility, the gig economy is changing that this is a bit of a revolution and a new chapter in that

revolution >> is it a technology company? it is a descriptive company tisy it is the american way of buying a car. the american way of the right to passage. you are a teenager and you get a car. this whole generation knows this is what you pay up for it. >> i like the stair step narrative you had, you needed the web and mobile >> they don't know you and you know them so you got some privacy that works all those things came together in an amazing way. i think one of the things that i love about it is -- i am stuck in some town near milan. i want to go -- or uber.

>> that's the blessing but also the curse as they now have dozens and dozens of regulatory levels >> and you can go around new york city and look at all what seemed to be individually owned cars that has tlc in the back. it is amazing the proliferation of uber or lyft which created an n enormous congestion. travis kalanick that you see autonomously run fleet that moves in unison and therefore eliminates we have a famous medallion >> yes, we do, michael cohen >> wownership of taxi cab fell

dramatically once uber and lyft were introduced into the market. we all remember when we first heard it you don't have to held a cab, you can uber i didn't even know the verb. it is really great to see dara and it is like kind of -- he's sheriff. >> he has an amazing history, started out as an analyst and of course moved to expedia and born in teheran >> a great fan of cnbc he has a great method of explaining to people how i am going to come in and clean the company up i thought it was interesting first thing you talk about is tony west. those who do not know tony, he was the justice department sna sh negotiator during the great

depression he's here and basically says zero tolerance the tolerance for the intolerable. >> that was dara coming in saying we'll do things right >> it sort of bring us to the board where we talk about the board a lot in those days. i am told the board members had some breakfast upstairs before coming down. >> we spoke to brian grim a moment ago and did not have much to say and chai was here, there is a lot familiar faces these are all old hands and

remarkable in terms of their ability of everywhere they have been it is porpt important to put it. uber would be a focus -- it will be the the way that people move around >> you got out of school and you bought a car and you went to work and you worked there for 25 years and now you work at four different companies and you work when you want to how do policymakers, are they independent contractors or not >> yes let's get this ball rolling here on this friday morning

what a day we are just getting started. let's get the opening bell at the big board celebrating its big day, it is uber at the nasdaq and unicef celebrating mother's day on sunday holy cow, i forgot david, never too late. 1800 1800-flowers >> all right, a round of applause, this is going to be a long morning as we get the ipo rolling here do you think uber, do you buy it as they play on autonomous >> i was working on that all week and saying what keeps alphabet, we have waymo and we are going to do it everybody else is doing it i don't know how much of the technology they do own i have been there to one of their factories, they own scooter technology >> they would say they own the

network and the network, the ecosystem? >> yes >> even though you may not need drivers. >> the intelligent network and all sorts of different things. >> they own waymo. >> it will allow them at some point to run autonomous fleet that are not owned by uber >> lebeau has some notes some of their data shows the cost for a mile ride is you ta the key to get profitable. >> that's the wholly grail sometimes i wonder that's not like elon musk talking about what has to happen with a million or two or whatever you want this to be based and hard fact. you don't want there be some sort of high you know what happens then,

people get hurt. please don't do that br consider ra be considerate of the idea remember there is lyft we don't want to lose sight of lyft we know people own bonds >> selfies >> the original employees. >> have you seen travis? >> yeah, travis is right over here >> he disappeared. >> you want to stick a mic on him. >> i had him >> he said i got a vision and i was like come on >> it turned out to be a vision. >> it was a vision >> what are you looking at trying to find him >> it is funny imagine what this day would have

been like with the tariffs >> they're not even on the front page of our show we are trying to keep in mind, talks are set to continue today. they had a working dinner last night, there is been some reporting about whether or not the vice premier is on a tighter leash from china and by the way, they did have the tools to manage what they call external factors referring to this trade tensions >> i do think that the president seems almost -- it is going to be so great for our country either way the chinese are paying these tariffs again. we know it is a story line that we may not agree with. he's basically saying this is a victory. his ability to pull victory out so to speak because he does permit to feed makes it so that it is hard for the people at home to get a sense of whether we are short term getting hurt

i mean obviously employment is so strong it is not clear. >> well, they're the other worry, are we in a whole generation of em merson of electrics. i can't sit here and cry because of the supply chain. >> i keep on thinking if you agree to pull out of china in if next 30 or 60 day permit and you are going to go anywhere but china china, you will be exempt from the tax. they want everything here. it is not that easy. as long as it is not built there. they sure are for vietnad thailand and cambodia. i mean this company is moving so fast >> come son. >> it tends to be what fred

smith says from fedex. you don't have the airports or the infrastructure but at the same time when you speak to gary fill m filman from dollar tree, do you think we'll sit here and take it no they're moving people are now riding list of possible retaliatory measures because they said that may not be symmetric tariff for tariff they got treasuries and yuans and inspections. >> i think they can delay things you have seen it before. i do think that everyone is thinking apple, apple. and how much is that one of the reasons why i think -- the service revenue stream that takes away the hostage point. you don't need all the new ones.

it does matter >> in the end it is mom and pop businesses a look at travis kalanick as we gauge what his level of participation will be today. given that tension we talked about earlier. >> i thought he was grateful during the interview with andrew and dara is really graceful. mr. kalanick was criticized and there was a kid on the board and obviously his -- a big day for him in terms of his network, no doubt about it and ichb given in

ownership position of $5.6 million or something? >> what do you guys think of the this whole merchant of amazon of their industry, that's so fashionable to say we are the amazon of angst. >> travis just noticed the camera >> who else is into him? >> you are going to get everybody today. >> 20 minutes conversation with my wife. hey, i thought he's a smart guy, who is he? are you kidding me you didn't know that was travis. >> 123 on the dow. boa has some flow data this

week global stock losses about $2 trillion around the world >> that was -- i am talking to mull people involving in this discussion there is no doubt about it that the clhinese did not rip off the agreement. it was more redacted than the mueller report you are buying the line -- i don't think it is a line i came at them hard, come on, no, there were a lot of things the chinese decided they're not going to live with the things that had been worked out may have been sincerely agreed to. once it got to the higher level of chinese leadership. that's what you came up with, guys >> i think that's an approachable analysis. remember there is a camp within the white house that did not want to talk to proceed the way they work. these were the ones that don't regard this about customers, they regard this about 2025. >> they regard it as an all-out

economic war of the united states here you are talking more of the abandon camp and he's not apart of this administration but, i think some of those news may be shared by the lighthizer and your friend, navarro >> i am not going to deny what you said typically i was about to say who's my friend? who introduced me to navarro larry kudlow he's a terrific guest to book. one of the things he's saying is these talks are going to wrong way. those who believe that the chinese have historically gone back on their word felt like wow, they went back before they saw new record of how well they quickly go back? >> by the way, it is not take your parents to workday. it is travis kalanick with his

father >> you are getting up again. >> yeah, i got to do that. ad lib while i get tony. >> tony, why don't you come up for a second come on. >> oh, it is all right, you are a hero to a lot of people. >> i will say hello. this is tony west, the man that a lot of people feel the guy that has done the most changing the culture in a positive way, a hero justice for a lot of people oh, you are really doing like the princeton where you are turning your back. >> i appreciate it >> congratulations for everything you have done to make this company >> there is nos rules today. >> no, there is no rules tony west, i have known him forever. >> he's done remarkable things what a great period of time of what will we heard would scuttle this company >> some extensive family here.

can i bring them up too? >> what is this, joe franklin's show i have the brother of one of the most famous people ever. who else am i going to stick here on? >> let's have a mingle >> you are ursa laberns. the books are going to get to work in a little bit i mean we had news last night that is was earth shaking. we had as genuine tariff war you want me to grab him? i will go grab him we had a genuine tariff war and the dow is down 66 points. has he since tweeted that?

>> i don't recall it >> he tweeted on everything kind of but, i do think there is a lot of company where it is typically and they slow down are rallying today i think that's important a lot of the transports are not doing well which again, the transports are viewed very much as a proxy for the idea that the chinese can slow down our commerce, that's many i -- my biggest worries. have you seen yum yum china. starbucks is doing fantastic >> you got cautious going into the month. >> you remain cautious >> i like to see what's going to happen because this is hell week we came through this deal. >> uber. >> which we thought one of the potential liabilities for

stocks >> their money came out this week and they still demand for uber, that's a positive sign i think the president hate them or like them, has portrayed as narrative that america wins on this the president has said this is the strength of our country. a lot of the technology company that do business are doing well today. the stocks are up today. >> you think the market believes this does get worked out in some fashion? >> yes the market is speaking loudly. >> wow this is no t tt the end of the d but beginning of a new chapter of negotiations. >> that's a good point to move on here. let's get to bob pisani over at post 5 and see how this is going to work today, bob >> we are excited because they are now in the process of building the book. this is a traditional process of how it is done it is a big deal

let's get to the woman in charge, stacey cunningham. big day for you. >> it is an exciting day for >> it is an exciting day for uber and a lot of people everybody here at the post 5 and citadel, the most important thing is the deal is getting done this was a huge offer, $8.5 billion, a lot more than a normal ipo >> it is one of the ten largest ipos of all time that's a really big deal we are not going to rush it. we'll take our time and look for the right price and make sure it trades in a fair and orderly way. >> you had to be happy of what you are seeing the government was shutdown where 200 ipos lined up for the year, a little concern, is it going to hope and the market going to handle all of it? so far it has. we had 13 ipos and most of them are trading to the upside.

l lyft has been an exception what's your sense? >> we are cued up and ready to go we are seeing a busy second quarter as they are coming out investor demand remaining strong, they performed very well and dietsespite a little bit of market so a little bit of market volatility they seem to weather a little bit, too. >> we got a lot coming up and we are waiting for slack to start its road show. we work and we don't know when finally it is going to be made public for that. there is a lot sitting out there. how do you feel the market's ability to absorb all of this supply we see investor demand is strong >> uber just ranked $8 billion in a market where there is been ipos already we see dynamic companies coming

out. >> we had no idea whether the market will be up 500 or on the dow and all the volatility headlines, how does market volatility impact the way a stock may open or even priced? can you give us a sense of that? >> anyone can choose their perfect market, they would want to be an upward moving market. if you think of what the company is doing, they're here for the long hall. it is about the weeks and years and decades to come. a little bit of volatility at the gate it is something that we should not lose sight on the fact that this is prolonging.

>> so when it first starts trading, it is not moving around rapidly. that first tone is setting a tone with investor confidence, we want to give stable at the right place when we open we'll take our time if that's what it takes. i want to emphasize how big this is, $8 billion probably 500 institutions investo investors, this is a lot of money on the street and a lot of allocations and in order to start trading, they have to agree all the shares have been distributed a distributed. that's what's going on now >> yes, it is a well orchestrated event and the bankers upstairs and the floors sending messages back and forth

to their kpacustomers. it all comes together where they say the book is frozen and they'll open the stock >> 11:30 to 12:30, it will still be my guest after all. >> you had time of a long standing a friendly rivalry with the nasdaq about this. you are still back and forth on the listing. how do you feel your shares winning this year? >> if you look back at five years, 75% of tech have been raised on the stock exchange, i feel good about it >> this is an exciting day for everybody here, just the fact that the deal is getting done. stacey cunningham, thank you joe mccain will be here. he'll give us a sense of where we'll stand. back to you. >> thank you, bob. if you missed it earlier uber's ceo talked to andrew

sorkin about profitability >> i think what i am saying is when you are dealing with the $12 trillion addressable market, it makes sense to lean forward and you know our investor base, there is an investor base that wants growth they see it the same as we do. >> he talked with sorkin and cramer >> sorkin or cramer or whatever. what matters is he's taking this very smart view which is the least -- this is the most under promised ceo i have seen in ages there is nothing this man is promising -- anyone who gets excited about this is doing it because it is their own darn fault. it is not dara's he has kept to live in a lot of enthusiasm there a great way. you can do that when you lost $10 billion over the last three years. >> oh, you mean kind of rooted in facts >> yeah.

>> that's a lot. >> you know what i am saying >> amazon lost $3 billion in its first year of operations >> that's true i am saying if you were took -i you were uber, he could easily have said, you know what we're in everybody's wallet, we're in everybody's phone, we're universal. no, he is saying, look, it is going to take a long time, we are pricing this right i love what he said because he did not choke. he did not foment volume i have seen many executive come on the floor and talk about, this is our time he's not saying that now, he did say maybe when you could argue it was their time last year, some were saying that to me. before the last quarter was when they should have taken action. but i'm watching the verbiage around pintrest. >> okay. >> yes, i'll say it, beyond me those are all like, yeah, man.

this is like, well, you know what, this is unusual for us today and i like that. >> you know, some of the few notes, on uber they've not been over optimistic. they say it is a complex model, no easy comps, revenue has soften. >> emotional environment a lot of times emotional environment, and that's not necessarily what should make you want to get excited. >> it is fascinating, too. because one of the largest shareholders, of course, is moss bank interesting, the last time i remember this much tumult was alibaba. showed up for that one it was a great deal. >> it was a great deal. >> it was for them he got there for them. but ross bank has funded many of uber's competitor, in a way subsidizing their ability to continue to compete against uber with lower prices, forcing uber to match them and lessening the possibility of profitability in the near term. >> how about apple funding

china? yeah, and that's a really interesting complex because uber didn't feel that it was necessarily a great market. >> no, they didn't feel like they could compete so they stepped out. >> it does show they're not willing to lose money everywhere in the world the director of uber praised this right here. i would love to have him come on if i do one more of these, am i going to get shut down but this gentleman here -- >> i think tony west is going to shut you down. >> that was big. i went to see a prince concert and he was not turn around to see us the man has uber -- should i even attempt >> no. while you are thinking about it, what does the cfo, nelson shy, told david a few moments ago about building the book. >> we are building a company for the long haul and you build a once-in-a generational company over time. it is important about to make

sure we have the right shareholders in. we focused a lot on that, david. we will see how it goes. you don't know how things are going to turn out bud we are purposeful in doing it these guys built a great company. >> to your point about keeping enthusiasm within a certain limit. >> okay. you've got to do that because this is something that is -- if you ask millennials what they'll pay out for, what will they pay out for? they'll pay out for makeup because they're selfish generation, they will pay out for apple iphone and for uber. those are millennials saying, you know what? i don't care how much it costs i will put a tip on the app, how about that >> it is funny, we talk about -- we always talk about things getting amazon. >> right. >> the amazon death list will we start talking about things that are getting ubered other than the cab business, for example, the taxi business >> i do think a lot of people

feel that grubhub cannot compete. i really disagree. i think grubhub is doing remarkable things, for artificial intelligence to be able to help customers that is much less of a commodity than people realize. uber eats is a higher-cost player in this business. in this new generation, delivery matters tremendously whenever you speak to a retailer, they're always -- what do they have to say? what do they want to talk about? door dash partnership. everybody wants to talk about how we get it to you and how fast and does the food actually travel well. uber is a great way to dot, expensive, but there's a lot of competition and grubhub has not been knocked off a lot of people felt they were the short position uh-huh, not knocked off. >> but i was talking more in the larger scale thing, like the car, car ownership, right? >> well, trying to get er run up

here why in they' why? because they have the eco logically because -- because the truck comes back empty this man has developed an app so a trucking -- a trucker from minneapolis might just grab the truck and take it back, and it is the end of a sizable portion of solution because it is one of the great words, solutions. >> yes. >> and i have to tell you, more jobs, more jobs. when this man over here told me, he said, you know who is doing, they have historically -- he said it, been discriminated in the trucking industry, but now nobody knows them. it is uber it is uber. >> interesting. >> i was going to see them get -- it is a joy because he is saying we're going to face a breakdown 20% by year-end. you know it is a principle

source of escalation of inflation. there you are again, you get the one thing everyone talks about i know, david, you said i talk too much about clorox. they're saying, listen, it is still a problem with freight this man has a way to get freight cost down 20% by december how about that >> an illustration of the dis-inflationary tech environment we live in. >> yes i think it is happening so fast, when i met him he had a volvo next to me, and it was a self-driving volvo if they can get that, is that not -- and that's something that domino's is swearing by, that they will have self-driving cars to deliver pizza that, again, is incredibly deflationist. >> how will they get the pizza from the car to your house >> you have to get out in your pajamas and pick it out. >> that's not going to work. they still need a person. >> you need a perp, but the possibilities are endless. >> the possibilities are

endless. >> we are going to watch the averages here and not let uber take over too much of our attention. we went through a series of attempts to get above 2820 three times, we finally cracked it and off to the races again is that now legitimate support >> look, i do -- i am concerned -- i mean the president is such a wild card. i mean a tweet that just says, you know, i've been rethinking this and, you know, we don't want to have them save face, we want their faces ripped off. that would probably go up negatively you know, he does that stuff with all due respect you know, we want to have -- we want to -- you know, they don't want the chinese to talk it is a little bond-like with "goldfinger," right? >> i expect you to die >> yes i think the president is too much of a wild card to say, you know what? i'll make this the level right here, i'm buying apple it doesn't seem to make sense to

me. >> talks continue today. we await progress updates from the various people. >> what happened to mnuchen? did they undercut him or did he undercut himself that's a big discussion at the white house? was mnuchen too optimistic >> "politico" is reporting this morning that the potus was given overly-optimistic reports about progress in an effort to keep his patient as the talks dragged on. >> that's what i'm hearing they tried to manage president trump, historically not an easy manage man to manage as you know. >> let's get back to bob. >> citadel securities, talked to the man in charge, joe mccain. let's ask the question any idea what is happening >> we are working to try to get an indication that the first

price range with way we think the stock might open so we're in this process now of looking up what the orders look like that are coming in electronically, how much the upstairs underwriters are indicating morgan stanley is running the books so we're waiting for them to put in the orders all of the orders represented by the floor workers, and as we get closer to a price range we are hopeful in the next five or ten minutes we will be able to put up a price range and that will start the process of finding the opening price. >> we talked with stacey about how it is not a normal ipo you probably have 500 institutional buyers potentially and sellers. how does that complicate things? how do you decide how the shares get distributed properly >> yes so a lot of that is just getting to a point where we feel like there's enough interest represented in the opening cross, that it is going to open in a very stable manner. so the size just adds sometimes to the length of time that it takes to get to that point and then a lot of our focus is

once it does open making sure that it has a stable process around it. so a lot of our planning and a lot of our work is making sure we have enough capital in the market to be able to ensure a smooth debut after the opening price. >> a lot of us were saying that the most important thing about what is happening today is the fact that the deal got done. >> yes. >> there's been a lot of market volatility over it all this week can you address market volatility and how it does affect the pricing how it might affect even the opening trade? >> sure, the macro environment certainly has an effect on where things price and where the pricing ends up being, and so it sound like the first indication is going up. in general, look, we have seen a lot of good demand for ipos, right. we had about $30 billion of issuance after this week versus 43 billion all of last year. so we've seen a lot of good demand for ipo, so it seems like the macro environment certainly will have an impact, but we continue to see, you know, good demand from investors. >> of course, we saw that they priced at the low end of the expectations and, of course, we had a lot of quiet at the open

that's the most important thing. we will come right back in a few minutes. i think we're getting some early indications here let me just confirm that and we'll come back, joe of course we will come back to you shortly. >> thank you, bob. >> guys, back to you. >> bob, thank you very much. as we have been covering all morning long it is here, the uber ipo the ride-sharing service prices towards the low end of the range, $45 a share values the company at nearly $75.5 billion. sara icer is onset jim cramer will stick around with lesley will be breaking down what it means. we have a story outside of the exchange let's get to leslie and the numbers. >> good morning. uber pricing the ipo a dollar above the low end of the range it marketed to investors no doubt it was disappointing to uber whichcould have raised about a billion dollars more had it price it at the high end of the range.

that is cash that uber needs as it tries to battle over the space. it is mon for them to post high, facebook, alibaba and pintrest and even lyft posted above they say the confluence and the market uncertainty led them to price more conservatively. i'm told investor demand was more tepid than expected as well uber is on track to lose $4 billion this year, and lyft's debut has created concerns around the ridesharing spaceover al -- space overall. we will get a decent pop in uber's stock early today many investors are investors that could theoretically boost performance if they choose to do so, but it can be hard to get an $8 billion float as uber is off

the ground in a smaller deal and market forces look as if they could be moving against it it looks like it is indicated to open slightly higher at this point in time, guys. >> leslie picker, thank you. joining us now, former president and ceo of the new york stock exchange, tom farley,. welcome back. >> thank you it takes me back to the alibaba days it is good to be here. >> you stepped down may last year. >> just under a year ago. >> did you start laying the ground work for this >> for years at davos four years ago we were trying to figure out how to get in well with the company and it was kind of the first way we able to start to build a relationship with dara came in, i met with him around a year ago. it was actually further when he had just started and i liked him from the get-go. a simple, humble guy

he met me himself at the elevator bank. we scheduled half an hour, we spent an hour. he told me we're not doing an ipo in 2018, we likely will do one in 2019, this is how we think about the business and here they are today. >> so you get some credit? >> no, in fact, i just saw stacey cunningham and told her what a fabulous job she did. 19 of the biggest ipos have been here at the nyc so they should win quite a few, but stacey and john did a great job. >> video of stacey walking with dara moments ago what do you think about the conservative approach, pricing at the low end of the range, right at the level or below the level of the last private funding round. good idea? >> let me answer two ways. first, this is the beating heart of capitalism. forget last night when they picked the price using voodoo. this is where supply meets demand this will be fun to watch. i was almost late because i was at home watching this and i was riveted watching your coverage today so it is exciting.

with respect to how they priced, look, i have strong views. ipos often have a very, very big pop and it is celebrated i don't think it is a good thing. i listened closely to andrew ross sorkin's interview of dara. he said two things let's have a smooth price after the open, that's what i'm looking for. two, let's not have a huge pop but not have it go down. let's have a small amount of positive price movement so the investors who took a risk last night make some money but not too much that's what we're looking for. if they priced it too conservatively, that's a problem and they handed money away and that's costly. >> i wonder, in general do you have ipos have a first day pop at the nasdaq? >> no, i don't think that's the issue. when i was selling against the nasdaq, the issue i would come back, i would say, look, ipos tend to have less volatility at the nyc. with respect to the pop, there's not data to support that exact

point. but there's a more recent example which is direct listings there is zero pop. one of the things i said to dara when i met with him a year and a half ago, hey, i'm working quietly on this thing called a direct listing, maybe you should consider it. he said, look, tom, maybe we will, but we're a capital consuming business model at this point and we're not going to miss a lot of opportunities to raise money even if it is a little more expensive than i would otherwise like again, true to his word. he is raising money for that exact reason the uber that comes to market four or five years from now i think may well be a direct listing. >> tom, speak to us about what you think may have gone wrong with lyft, what went wrong with facebook and what obviously, at least for now, is going right now? >> well, you all have said it on the air and you have said it yourself, jim. first thing you want to do to ensure good ipo is get the stock in the hands of the right investors. i think if you saw the list of the original lyft investors you would say, wow, there's a lot of very fast-moving traders, there's a lot of hedge funds

that will move in and out of a stock quickly. they knew there was positive momentum and thought they could get a first day trade and so you had a lot of sellers after that first day trade. the second thing, and this is what is going on right now the team leading this price discovery process is morgan stanley. the quarterback of the process is actually a quarterback. john pacy played for the new york jets in the preseason, was a college star he is leading the process back if midtown, opening the stock at this moment. if they have a sense that this is going to be another lyft, in other words they're going to open it at a price but there will be a vacuum below, there's a lot of tricks to the trade that they can pull over the next three, four hours to really try to milk that opening price down and that's what i expect to see. they don't want to see a 30%, 40% pop here ideally because it is going to open the comparison to lyft and it will get people quite a bit concerned. >> speaking of lyft, dara talked about it earlier this morning with andrew ross sorkin on

"squawk box. >> i think there's no perfect lesson here. i think that they probably did the best they could with the data that they had it lead us to be a bit more conservative and it did lead us to place with mutual funds that we trusted, with whom i had relationships with in the past, et cetera. but, again, all of this when you are in the middle of it, it is very easy to second guess it two weeks later. but when you are in the middle of it, you do your best and i think they did their best at the time. >> jim, he could easily have punted on the answer and he didn't. >> no, he didn't he's so straightforward on everything that was such a natural statement, but i do think that i'm looking at this. i will be candid, it is a little more subdued than i would have thought. i would have thought there would be a 5052 to get started and this is -- if you are at home, i think you might be saying -- obviously people at work now hey, if they told me it was going to be 4546 i would have

come in and bought some. i think it is a keep-sake name i think a lot of people feel this is a revolutionary keepsake and they would like to have a couple hundred shares. >> perhaps tom, i would love to come back to you on the book let's go to nelson chai the cfo of the company about that. you referenced ali baba when you sat down and i think joe went through every single name potential that would be a buyer of that stock. nelson has intimated a similar focus on the names how important is that? >> well, all three ipos have very different strategies. so if you go back to alibaba, they actually cared relatively less about the pop in fact, the stock opened right here at 92.70 i believe was the final number, closed that day at 93.10 but they priced it the night before at $66. so they actually gave away $10 billion worth of value straight to the buy side why were they willing to do that because they got what they considered the perfect

allocation of long-term holders and true to form that stock traded dead smooth if you recall. >> never gave it up. >> exactly whereas in the lyft ipo i expect you saw a little more of an emphasis on let's get a nice price and a little bit of lofty elevation. i think uber is striking the right balance between the two. what i expect to see today is a stock that trades up but not too much, just like dara said, and is going to be in the hands of the right guys. >> what do you say to people who wonder whether uber waited too long to go public? where in the life cycle a company should be? they waited a decade much of course, ironically they go public on the worst week of stocks of 2019 and revenue growth, that flashy revenue growth has declined a little bit because they're just so large. >> well, they did. they waited too long to go public in my mind it is manifest. the arguments on that side of the ledger are myriad. some of the issues they had, call it culture, some of the issues they had with their culture would have been solved

in a public market you wouldn't show up on a quarterly conference call every quarter and three or four new stories like they were having for 18 months. secondly, the returns for uber investors haven't been that good lately you look at all of the money invested in uber, 25 billion bucks, their pre-evaluation was 73 this is a 2.8 x investment that's great but the initial investigators got 2,000 times their money. they haven't been making money this is a company that needed public discipline. this is a company that needed public currency and it is a company that should have gone public three or four years ago >> did they ever explain why >> with the reasons it was, hey, we're in a land grab, we don't have time for that, the public markets aren't going to allow us to do it look at the foray into china there was a lot of money lit on fire into that they were showing up on the quarterly face time call

what happened, they built a mobile strategy and ate the world. >> they talked about a couple of clients that no one ever heard of. >> right. >> it was a furniture company somewhere. the idea that there are lockups is a longstanding tradition. we kept here there was no real great lockup experience with lyft how is that possible >> i personally don't think it is a big deal. >> you don't >> there's a long standing tradition of lockups let's say it is six months the problem you would have on ipo day you are deferring six months in my view if your investors don't want to hold your stock, why are you going to hold them captive? the example i will give is spotify. you guys remember on the day of the direct listing how smooth it traded in there were no lockups, other than daniel came out and said i will not impose so i personally don't think

lockups are tremendous, but the data is there. >> i think that's important. you know, a lot of us felt it would be hard to pound, because we're so used to not being able to borrow, but then start out, well, they could i think it may have been more of a had we known, we would have been as opposed to -- like in spotify we know. okay we know so it is part of the equation. >> yes, and i still don't know with lyft. i don't know for you, was there active shorting going on eventually i think we will know but i don't think it is abundantly clear. >> jim, lucky to have you for now. 28.50, how would you -- >> i have to be because this is a long day and a lot of stocks that were hanging in there at

the beginning are starting to fray it is a very big weekend i think a lot of weekend are going to say, wait a second. the longer this goes on, maybe it turned out to be far bigger, in the meddle of tiddle of the looked better. i have been calling this all week for a long time you have two different things. you have people probably saying, you know what? geez, the uber deal is a little subdued, maybe people are more con concerned than i thought another wrinkle. you need to have uber up enough to have people get a little excited. >> i'm not feeling the excitement here. >> you're not. >> they priced at 45 the early indications over here are 46, 47 bucks you know, this is -- >> it would be a new one. >> i can't imagine morgan stanley -- >> that was -- >> -- will unload a lot of fire power to protect that 45 price put it that way.

>> and they have that. explain. >> there's two ways, the over allotment option in the ipo they will use in a canny way. these are smart guys they do a great job in these situations second way they will do it, they will deploy firm capital as needed i will mention the dmm over carl's left shoulder, citadel, will deploy firm capital i know tim griffin cares very much you will have the team of morgan stanley and citadel watching the stock. >> you said earlier, lamented the fact uber didn't go public sooner are there any number of companies that you could make the same argument on i look at the capitalization of uber, not just from the money but from the debt market too it is stunning how much money this company has been able to consume prior to going public. >> right. >> kind of a new world. >> yes, but, david, it is not just about the capital you raise your business, and the

public has the discipline far greater than the private i have run the largest market in the world and it is not even close. there aren't too many companies i would say categorically. airbnb looks ready to go public than they did a year ago, that would be an example. otherwise i see private companies growing larger in the private market for a good reason now they've gotten to the point, okay, let's expose our business model to the world, get the public currency and let's go. >> public discipline, will they put up with a company with a $3 billion operating loss last year >> they're going to ask andrew ross sorkin questions but in meaner language. dara talked about cohorts of countries and we need to increase the margin. i would take it to the next level and say, show me how this company produces $5 billion of evda in five years so me exactly how we get there

how do we reduce the driver subsidies, how have we entered other markets. what are the unit economics. if you can show me that 5 billion in a reasonable way i will take a flyer on it. >> stick with us, tim. we will get to looking at uber's road to the ipo. >> reporter: sara, it has been quite the journey for the company. i remember the days when travis cownick when he was ceo when asked about plans and he would push them off saying no problem raising money. here we are nearly ten years later, nearly 30 billion of capital raised driver drama, but at the same time 50 billion in gross bookings last year and changed the way a lot of us get around a lot of the characters from uber's past and present were on the floor this morning you saw a lot on camera.

chris saka was there, an early uber investor. he said he got sentimental because he saw austin kite ringing the bell she was employee number four she started as an intern and she would do man on the street interviews and asking what people like or didn't like about uber and flyering. we saw ariana huffington she didn't want to say much but she was a crucial figure along the way. i will bring you more color a little later, guys back to you. >> deidre, you have been talking about the risk factors, you have gone through prospect ous and yo know the business in and out what do you think is number one risk for investors when they think about buying the stock today. >> depends on where you are coming from. i don't know if i could decide one risk is more than the offer, but i think the driver and regulatory risk is a big one andrew asked dara about this

this morning and you could tell he was thinking about it he didn't say it was a small group of drivers protesting. we actually see one here so there are a few that showed up it has been muted this week but i don't think investors should be fooled, that there wasn't as big a strike as anticipated or not that many people out there the fact is it is a small but vocal group having an effect on regulations. take a look right here here is one. it says, stop abusing workers and a lot has to do with the gig economy. how come there's not more out here what happened today? >> drivers are stuck, you know they cannot make ends meet they cannot take time out to protest, to get their word out because uber told them you're going to become your own boss, which is not true. >> reporter: thank you we will keep an eye out for you. guys, as you can see as i'm talking about one of the number one risks, this is something that isn't going to go away.

it could just grow stronger. it is a small but vocal group right now but they're winning people over to the side. like i said, they're already having an effect on regulation back over to you. >> deidre, thank you very much jim, you know, the independent contractor thing is a risk and it is not just the protests but increasingly politicians are jumping on this issue. bernie sanders, for instance, saying it is not fair. i wonder how much that changes the business model and the economics, that they're going to have to start doing things like health care and disability. >> one of the things that is so important is that at the supreme court people are picked by president trump, and this is a very big battle ground where the traditional hard right is just saying, hey, listen, these guys are owed nothing that will be difficult because we all know that the cost of health care is such that it makes it so that to be a gig economy member, that's the single biggest risk. i deal with people part of the gig economy, they want to know, what do we do for health care?

the answer is you have to pay for it yourself and the system does not favor those who have to pay individual contractor for themselves it is a big issue for the economy and it is difficult to tell what is going to happen there. >> it is a big issue and this company created a lot of worth for investors and a lot of job for drivers. on the other hand we want to make sure that the drivers can make a decent living i'm going to sound like the conservative libertarian here, but let me ask a question. doesn't the market figure it out? if it is no longer economic for these workers to drive, wouldn't they work for another gig? >> that's what the self-drivers are about. that will pressure the price of a driver and what will it really mean at the same time and i'm looking at this ---i i'm waiting, wheres the 48.52. we have copies like pintrest, i read a piece saying it is very fairly valued at 30 times sales. do we have a different standard

here 30 times sales, this thing would be a lot higher. where is the excitement? >> i'm hearing if anything it is solidifying at 46 to 47 as opposed to going up. >> maybe five to get a little mojo -- >> remember what dara said he said, i want it to go up a little bit but not a lot you know, that's the zone we're in right now. >> it could be, plus it is not exactly like the market is just a dynamite market to go in and start buying. >> i mean you would think -- how much do you think that has to do with some of the hesitation and the curbing of our enthusiasm? >> there's a direct correlation. it is two inverse lines. the volatility in the market and the number and health of ipos. volatility has doubled this week doubled. if you look at the vix, it was 13 last friday today i believe it is close to 25, so just under doubling does it impact this ipo? without a doubt. without question. >> yes, that's a really good point. i stayed up late last night to see maybe if there would be a

stay of execution. there was nothing. it was just, bingo they're on, game on. tara. >> and it wasn't bad enough they had to delay it. >> it is funny you say that. i was watching jim on monday jim was calling this week, jim was calling this week for three weeks. >> thank you. >> and he nailed it. >> thank you. >> i actually sent a note to a close friend here in attendance today, a well-known name i said i personally would put together a plan b, which is an uber ipo in another two or three weeks. >> oh, i know. >> i'm not saying they should have moved it. i would have had the plan. moving is a big deal you have the whole roadshow set up, a day set up you don't want to make it seem like you're a short-term market concerned with the markets of the day. i'm not saying they should have moved it but it is a lousy day. >> i sit here and i think could there be a moment where i did not want this deal to come if i were dara, but, you know -- >> december 24th. >> yeah. >> today. >> exactly >> they would have had to pull

those back though. >> yes. >> although to your point things are worsening in the broader markets. the nasdaq is down over 1% the s&p down about .9% right now. let's get to phil lebeau right now. taking a look at uber's impact on a bigger industry, which is the auto industry, one that phil knows oh, so well. phil. >> and, david, they're watching, the auto industry and the executives in the auto industry, they're watching uber and lyft but they have reached a point over the last couple of years where they think they have a better handle about the impact of ride-sharing on the automakers and it is no longer a sense of gloom and doom. oh, boy, nobody is ever going to buy a car or truck in the future that's not likely to happen. we may see auto sales cloe dosl a little bit because it is a cyclical industry and we're due for a pull back, but not a huge one. in terms of uber and the road to profitability, the key thing to focus on -- and you have talked about it all morning long --

when can they get autonomous vehicles in their network, and we are a long ways from that, guys not just with uber but with all of the tech and auto companies working on autonomous vehicles, we are a long, long ways from that happening so that's crucial. keep in mind that the average cost per mile according to the people at gm cruise for a rideshare today, about $2.50 to $2.75 a mile you take out the driver you get it down to a dollar a mile and you have the profitability kicking in we are far away from that happening for transportation around the world. >> phil, way far away, elon musk would beg to differ, wouldn't he >> absolutely. >> talking about exponential group and at the end things are doubling and tripling, therefore we're at the end of the ten-year cycle and we will see enormous advances. >> well, that's his belief keep in mind, most everybody that i have talked with who works on this in terms of from the technical safety aspect, they say -- they paint a

different picture. they are looking at late 2020s before we can say with any certainty, okay, you're seeing truly self-driving vehicles with nobody behind the steering wheel all around the country we are not talking about small geo-fenced areas in a suburb of phoenix or a certain geo-fenced areas of san francisco widespread around the country? you are looking way out into the 2020s. i know it goes counter to what elon musk is saying, but it is what most people who have been working on the technical aspects of this believe. >> you know, phil, in some of the research i was doing last night ahead of this ipo, one stat i went to was the department of transportation showing that people in this country who have their driver's license in 2016 is in the 60% or so that is a big decline from where we were 20 years before in the 80% or so. >> true. >> there are so many secular trends we are not getting driver's licenses, we are moving to

cities, we are using transportation as a service more, that i feel like are part of why uber is so bullish on its own future and its total addressable market. >> you're 100% right we are seeing fewer people getting driver's licenses and the combination of urbanization, people moving into cities or more urban areas in the united states and really around the world. you combine it with people being more comfortable using rideshare services, yes, we are in a secular change there but keep in mind you still have 60 million vehicles, at least, that will be sold this year, and even if this decline continues as expected over the next couple of years in new vehicle sales, the estimate is it gets down maybe to the high 15,5, 15,4, still a relatively strong year for the auto industry. in other words they're not going away. >> thank you, phil lebeau, on the future of autonomous i wanted to serve a little bit of color on the actual

performance of the stock prior to its open. you know, tom, i am hearing at least from some of the underwriters sri you, as you might imagine, the ways we communicate now, real institutional demand retail obviously is to follow but there does seem to be a belief they will raise the limit. we are at 46-48 now but don't be surprised to see it move up. >> yes necessary right now. i think at a sen point people could say, geez, it is a flop. i'm pulling my order. >> yes, 46 is tight, $1. >> yes. >> there's a lot of shares here, a lot of shares already paired here it looks like it will be a healthy opening trade. what you want to see is see the first trade in the several billion dollar range in order to send a signal out to the market that, hey, we found the right market, we discovered the price, whatever it is, 46 or 50 or 55 you want it to be a nice, big trade because it will calm trading for the rest of the day. >> those who got 35% of what they wanted might come in and buy more at the opening, which

is actually quite encouraging as opposed to selling at opening. >> exact reply. >> to phil's point a moment ago, is the autonomous element of their model too ambitious in your view, too much of a moon shot of getting to the holy grail of having no drivers >> no, in order to live into an $84 billion valuation they have to be successful in a couple of businesses they're not all going to work, it is not like they're going to be massive successes but one or two have to be and they also need to think long term remember, investors want to see $5 billion of ebda in five years. they can't think about how to grow next quarter but in five years from now >> i was going to ask you about other ipo, why is beyond me, pintrest and levi's trading above their prices and lyft not? >> i think we are talking about whether lyft had a little stock overhang that people didn't realize. lyft is losing a huge amount of

money. beyond me, it is a tightly controlled flow. >> although down on the week. >> i will tell you that i had a nestle's interview that was so chilling beyond me they gave me burgers that right now 1500 mcdonald's in germany are using, and it is incredibly popular, and they're going to bring them here this summer. you sit here and say, are you kidding me is beyond me going up against nestle's they can give the stuff away i did have one of the burgers? >> how was it? >> let's say it wasn't a big mac. it wasn't a wendy's. actually, my wife said, just like the domino's ad where domino's at one point did not compare favorably to shirt cardboard, she said it had the edge on shirt cardboard. >> that's good i guess the performance beyond me, the uber ipo signals something about the economic cycle that we're in, late cycle, what do you say?

>> think it signals something about when you have massive loss-making companies doing an ipo it is hard to value them. >> yes, so true. >> even the lyft ipo which is line a piñata, to be the devil's advocate, it opened at trade very smoothly if you recall. >> you're right. there was talk it was going to open at 100. i remember i tweeted and said, well, 87 87 was better than 100. >> right. >> but then, wow, heat seeking missiles came at me. >> all of a sudden the markets ran the model and said, hey, this sucker is worth less. it is hard to value something losing a billion dollars, and it is harder to value something losing 2 billion >> the contribution margin, dara during the excellent interview with andrew, did say that there's some good metrics. just that last quarter was not -- it was a little surprising. >> you know what this says to me is we works ipo will be

interesting. how is community adjusted epa going to be considered by investors? >> yes, something like 1999 when we started saying, wow, the eyeballs, you know, that ophthamologist we brought in to try to figure out what something was worth? >> i bet adam is watching this ipo closely. the business models are similar. they're both exchanges we work is an exchange, people who want short-term with space they're massive loss making. >> they lost more than their revenues how do you do that is it possible i wasn't aware it was but that's what it says. >> dara very self-effacing and i would say very underpromised i don't know if adam is going to be as similarly inclined to be as self-effacing. >> he's ceo of the week company. >> he's somewhat proud of mims. >> yes. >> fair to say

>> they've raised an enormous amount of capital as well. >> he also is maybe the single greatest salesman i have ever been in the press epps i left there, i was on a high, i think he had my wallet, my watch, i invested money in the company. if anybody can pull it off, it is adam. >> tom farley, thank you for being with us. >> great being here. >> jim cramer, you're staying with us. >> i might stay a little longer if they will let me. i might grab that mike and get in the crowd. >> let's get back to the floor with an update from leslie picker leslie. >> reporter: sarah, still indicated to open between 46 and $48, it could change but it implies a first day pop between 2% and 7% at least once this thing opens. i think a really important part as we kind of watch these indications and try to assess what today will look like for uber is what david alluded to earlier, which is the makeup of

the book which investors were allocated stock and how long do they plan to hold on to this that is a critical aspect of an $8 billion deal. people talk about quality, and when they're talking to investors and trying to assess what the appropriate price is, what they mean by quality is mutual funds, long-only mutual funds which tend to hold on to allocated ipos for a much longer period of time now, there's always a bit of a dance that you play. you want to price things at a price that could get the highest quality investors in the door with the hope that they won't sell out on day one. that is always the hope. now, i'm told by sources -- i was speaking to a bunch of people yesterday who said that the communication to wall street yesterday was that it was five times over subscribed but about three times over subscribed when you looked specifically at quality investors. now, uber also has investors that are mutual funds that invested before the ipo as well who could theoretically have

sought more allocation today and could potentially be buying more into the open this morning now, to differentiate it from lyft for example, one of the big hurdles they had, regardless of the quality of their book, is that it took place at the end of a quarter, meaning that people could have gotten that allocation and chose to sell out but no one would know about it until their 13f filings or their disclosures are filed, which we should be able to see actually this week, this coming wednesday is the deadline for those filings. so i look forward to see which investors were allocated that lyft stock and we still won't know if they sold out two days after, two days down the road. it will be really interesting to see how it compares with uber, which is timed much more in the middle of a quarter. so people can still -- if they choose to sell out, it won't be as obvious to the bankers that allocated the stock over time. guys. >> great call, leslie. i will be coming back to you often.

less leslie helping us understand the markets here >> let's check out what is happening. the dow is down 240 points tough day to go public, tough week to go public. the worst for the stock market of 2019, about a percentage decline now on the dow i want to check in on the s&p 500 as well, but just overall, you know, stocks have been down every single day this week. >> yes, it has been a really bad week. >> the second time this year we've had an imperfect week. >> yes. >> i was going to say the only bright spot are utilities and real estate. defensive. energy is getting whacked. >> apple rolling over. >> there's the cheen ina exposue but it brought in doubt this week. >> we will see 50 pretty soon on uber i don't want anyone to think, you know what, this one flopped. what would that do >> apple revisiting the 50-day for the first time since, yeah, mid-january, jim. >> yes this is your nightmare scenario,

is that people will start speculating exactly what the retribution is going to be and people will key in on certain companies by china what is china going to do? are they going to hit the farmers again? that's not the theory. the theory would be time for something visible and the most visible company, american company on earth is apple. >> i mean that is clear. they have tools, tariff and non-tariff tools to retaliate. they said they're going to dot we don't know exactly what they're going to do and it is in response to the u.s. going from 10% to 25% on $200 billion worth of goods, a lot of which we consume come from china. >> they can't sit on their hands, the chinese, because it would look like, again, this whole face issue they have to retaliate, something, something visible i don't know what they can do. it is not nike it is not starbucks. >> the ft today before we move on, the ft says global trade is now hostage to the fragile egos of two autocratic leaders. fair tough, but fair? >> i think that's true we've got two leaders with

alternate universes. a dictator can pretty much tell the universe what he feels, and then a president that says the chinese are paying the tariffs is also a confusing narrative for those of us who vice president studi president -- who haven't studied tariffs. the base seems to like the concept, that maybe we play it but then maybe they pay it if you took any course about history you might disagree with that, but that's history history was history. >> guys, let's bring in mike isaac, tech reporter for "the new york times" who has broken so many stories about uber, author of upcoming book "super pumped, the battle for uber. he has probably done a better job documenting the history of the company than anyone. welcome. >> thanks. >> what goes through your mind on a day like today, seeing all of this? >> yes, we were reporting last week if there would be any sort

of drama on the floor and there were questions about whether the founders were all going to be up there and who was ringing the bell kind of a last-minute unforced error basically, and it kind of has been pretty smooth this morning. you know, there was a moment where dara and a bunch of the co-founders came in and basically travis came in and had a round of applause, right i think it was a real sort of moment for the company to be like, look, we had these times, there was obviously fighting at the top and we're trying to move on at this point so -- >> you know what is fun? we have a team that was put in place here, and there's a fellow -- tony west, was part of obama's person to clean up the banks. he may have been the toughest person in justice during that period right person to bring in to clean up the stables that were uber >> yes, i think one of uber's biggest problems historically has been compliance in legal,

right? and one of the things that i'm going to talk about in this book is a lot of the -- basically disregard for a lot of local rules and regulations. so tony obviously is the opposite of that and the guy that can come in and just sweep up and remove the layers that weren't working and put his sort of staff in place, and they've really done a big job of that. he also settled for, you know, tens if not hundreds of millions of dollars a bunch of the outstanding investigations into the company. so he has been like probably one of the biggest forces to come in and be like, all right, let's package this up, move on and get to it next. >> we talk about dynamic, we see all the time, a tech company revolutionizes something with hard-ball, sometimes borderline illegal tactics and then they bring in the ruling class to bring it to maturity and put rules in do you see uber as any different than that general sort of play >> i mean one of the big

questions i always have is could uber have gotten to where it was if they played by all of the rules, right part of why venture capitalists invest in people is because the founders are willing to break some of the rules, or at least bend them. one could argue that travis was very successful in doing that and he created tens of billions of dollars in value for investors, and now today they're crossing the finish line of the ipo. whatever your feelings on the early days, that is where they are right now. later on they're obviously sort of shifting to play nicer. >> i think we have a good sound bite of dara, the ceo, talking earlier about the relationship with travis on "squawk box." >> i think it is fun he is a board member and he brings an insight to the board room that reflects his genius and experience with the company and that insight is valuable to us. >> kalanick not on the platform

this morning he was standing on the balcony in the corner, sort of far away with his father there obviously. >> although he was down here briefly. >> for the bell ringing. >> and then he went up there. >> he's going to be a multi-billion air as multi-billionaire as a result, but talk about his influence and some of the big problems created for the company that led to market share losses. >> that's right. i think, you know, the travis question, i think he still has a lot of supporters. i think no matter -- again, no matter how you feel about the guy, he built an incredible, world-changing company you know, changed the way we move around the world now and you just can't deny that i think there's a moment in a ceo's career when you have to decide what your tactics are going to be and what mode you're going to operate in, and i -- it is pretty clear that travis seemed to only operate in one sort of aggressive mode for most of his career. now, i'm wondering now, he's doing a new startup that focuses on more delivery of stuff and that is still kind of symbiotic

attached to uber because uber eats is sort of a large delivery, one of the big growth stories for the street so i still think he will be involved in at least a part of the company for a long time, and obviously he is a board member but he's never really going to go away. like travis is always kind of there. >> we were talking about autonomy and the holy grail of driverless do you think the biggest obstacle will be regulatory or execution related from within? >> i think there was way too much enthusiasm early on and probably too much hyping on when people would get autonomous cars on the road. we have no regulatory frameworks the development itself is like a huge cast suck for uber and everyone else in the space frankly, like just the systems aren't there yet it is a lot of data you need to really navigate the roads and they're just not there

so it is not any time soon. >> by the way, as we're talking new indication is 45.50 to 46.50. >> that's unexpected given what i was hearing as color. >> without a tweet from the press, this could open -- >> we have a broader market. >> the president now has to give a little hope. remember yesterday down 440, remember what he had the beautiful letter doctrine. >> right. >> or the corollary to the panama city doctrine to my great friend put in an order soon i marked the order for some uber because -- >> i don't know, the tweets -- >> -- the catalyst is that the public would not be rabid for uber. >> i was waiting for a crazy pop today and in the days before we saw the pricing get more and more modest. i don't know we'll watch for the close. >> when you have a nasdaq down 1.6%, it becomes somewhat difficult to raise dramatically when we are thinking on the face of that. it goes on the face of the very

color i was getting about some, 15 minutes ago that seemed to indicate they were confident they would be going the other way. >> i don't want to be too cassandra oriented for what i have been calling hell week, but if this broke price at the same time the president is thrilled the chinese are paying the tariffs, which is not true, i think what you would say is, you know what? we're not exactly on terra firma right now for the stock market >> boeing is below 350, jim. interesting prices. >> i know. taking out some levels here. all of the stocks of course are up for the year, which even boeing is up for the year. i think that -- well, it is tough to go into this weekend with the rhetoric. imagine if this is the weekend that lists ten companies xi doesn't want doing business in china.

>> he is a dow guy by the way, the beautiful letter, was it penmanship? >> from xi >> yes. >> we don't know. >> we didn't get a lot of detail. >> no. >> down 400. the president seems to get involved he's very involved with the dow. those of us who speak to some of the people down there, he's aware that -- david, i swear he is aware that the dow is calculated. >> i will tell you this -- >> weighted index. >> -- the spoke points out that the nasdaq was down over shanghai. >> a lot of people say they stepped in. >> state funds. >> they propped it up. they can do that. >> no disagreement. >> mike, great some tee you.

>> great to have you thank you so much. >> mike is with "the new york times" jim, your advice >> that 45 bid, we want it to be 45 we don't -- the one thing i think no one thought of was the deal with -- you think so? life "braveheart?" >> you heard farley using their own capital. >> where is newman he would make sure the deal worked this is interesting. i think that -- look, the market is just inhospitable honestly, people are just very nervous. this is -- let's not confuse things there were people at the beginning of last week who felt a deal is in shape and uber will be terrific and we aren't -- happy days are here again. uber, no and the president really i think

signaling, you know what, guys it is going to take a very long time. >> he said he's not in a rush. >> no rush. >> no rush. >> what i keep getting is, hey, the longer we wait the more likely it is haifeng harbor people are concerned about rebuilding, cambodia is the new china. >> that's not going to happen in the second half. >> no, it is not what you hear typically is you will hear like kevin plank, under armour, i know you care passionately, yeah, today we have 15%, they will get down to 7 in 2023. >> productive. >> yes it is not easy we're going to build planes and trains and fed smith has been saying over and over again, if you want to move stuff quickly it has to come from china, not vietnam. >> let's get some color on what is happening in post five and get back to bob. >> trading for citadel securities post five

we narrowed the range 46 to 48 indications are 45 1/2 to 46 1/2 tell us what it means. >> it means we're getting closer we went from a $2 spread to a dollar spread. we have 14 million shares that would trade in that range if we opened it now. it is a sign we are getting closer the company offered about 180 million shares, so a rough rule of thumb of 10% would be 18 million shares give or take. i think it is a good sign we are getting closer, we are narrowing the range, getting more interest in we will probably let it play pout a little longer but hard to say exactly when but i think we are getting closer. >> of course something this big, $8 billion float, that certainly is a lot of money to spread around on the street there's a lot of people on the floor with a lot of offers you can see them behind us there standing around as well as some uber officials that are out there. my experience doing this for 22 years, you always have guys sitting there with a lot to buy

and who want to wait for the lowest price at the pg on. that's w that's why it could get dragged out. >> yes a deal of this size where you are placing a lot of load, there's a natural time element how long it takes to go through the process. as you and that's part of why the process takes the time it does because there's an iteration around putting out an indication, more orders coming in and that changing the profile of what it looks like and having that feedback loop >> we'll keep an eye on everything 45 1/2 to 46 1/2, getting back to you. uber will open at some t soon >> it's nice to have you not particularly constructive on

the valuation of uber. fair to say? >> i think we live in odd times. attaching a $60 billion valuation to a company that l t lost, it's the time we're in i know autonomous cars are a big deal but it an unformed business and i'm not sure how it will look i'm optimistic, not as optimistic as the market today >> explain the differential in viewpoint between the markets and your on. what would you like to see and why do you turn yourself optimistic for a company clearly you don't seem interested in buying at $45 a share. >> it succeeded on one half of the equation it's the can have services about or logistic business has been

shaken by what uber has done it's done that half of the equation really well i've consistently underestimated its capacity to grow but overestimated its capacity to be profitable so it's not growth but whether they can deliver the profit margins sometime in the future, not even the near future but the far future i think they will find it but i don't think it's going to be easy or as lucrative as they think it going to be >> aswath, they may consider itself like an amazon. could uber make that case in. >> it could be everybody wants to be the next amazon i've been obsessed with amazon for 20-plus years. i've seen amazon go through some hard times i think the real test for all of

these companies is not how they handle growth and success but how they handle a downturn in my view what made amazon is how it handled the 2001 crisis, when it came very close to the edge i think that's what we need for these companies to get shaken out and a crisis and we'll see how these companies handle it. i don't think they've been tested yet so what would be the best margins? when you can get somewhere near 25 in ebidta, you don't think that's a possibility >> i'll know my profitable had my ride to the airport from the

city costs me $75, not 43. it's been 43 for a year. given the fares they charge, i'm not sure how they can make profit at these levels and i don't see how lyft and uber can -- >> one thought is maybe the duopoly will allow them to change prices? >> well, then at $60 i go back to taking public transportation. >> a lot of people have come not from taxi cabs and service, but

there's a tipping point. >> you mentioned amazon.ith ubeo different areas? >> i think the taxi cab issue is an easy within to take up. once you're looking into freight and delivery, you don't have as much softness. uber eats has been the on obvious extension that they've had that's made the money and i think it's the one that's closest to the ride sharing business i don't think uber freights really have gotten off the ground because it's a much more difficult business to break into and grow at the rate that they have the rest of the businesses. so unless you find really soft businesses, growth is not that ea

easy. >> i spent some time with uber freight and they've set up some infrastructure and you're not going to have that truck from dallas and minnesota filled and have it come back empty if you use what they have built they expect they will reduce the price of freight between 15 and 20% by year end. nothing would shock me with this company. they do have a very good logistics arm. you may think they're not there but of the different businesses they're going to go in, i think that's one they could astonish because of the ecological greatness of what they're offering >>om open to possibilities, but until i see the numbers show up and they dill haven't -- maybe this have the infrastructure design and you'll see it take off in the next two years, three years, but i'll believe it when

i see it i'm a skeptic in terms of that business providing the margins they need. >> they're in very much of a roll-out mode. this is something you can't write off between it starts. >> i'm not writing it off. >> reasonable people disagree. i think you and i could disagree >> aswath, thank you for sharing your thoughts with us. >> thank you for having me >> aswath, valuation expert. >> bob pisani was talking about a higher opening, which was not really what was in the cards

>> not stant with what i was hearing either >> where would that be if the market wasn't down >> you'd have a nice opening, you guys come in at 50 could it be the worst day of the year the last few days in december would have been very similar in terms of just horrible, right? david you're being very poker ifi faced with this company going public >> no. you heard farley saying you get momentum, what are losing by not doing it are you showing you're afraid? >> dara didn't tell you this was going to be the year to end all years. maybe in retrospect you did not promise anything >> you don't want to break below

45 because beyond that they're not unhappy. >> they're not unhappy >> no, they're not necessarily unhappy. they got their money they clearly priced it right for the market they're in. >> i'm sorry, i didn't mean like the, change, i mean the people, the notion that we're not winning on tariffs but there's a greatness happening. i feel as the market rolls over and people are maybe pulling some of their buy orders >> maybe typically we talk to bob pisani. bring us up to date on what you're hearing >> we've got a big increase in the number of shares that are bid now. 25 million now the book is rapidly building we're waiting for that to

stabilize. >> we were 45.5, 46.5 and now down to 46 is the market playing into all of this? >> it probably playing a role in it for sure. things are moving around quickly. it hard it's hard to pin it down at this point. >> 10% would be a typical amount to open a stock with 25 you're dealing with a million -- 15% >> with what's happening behind us, we're narrowing the indication by another 50 cents >> a new indication? >> 45 to 45.5 is about to go out. we're getting a little closer in terms of finalizing that final price. >> i would anticipate very heavy volume at the open