that affects valuation as well.oubt the move toward electric vehicles and electric short range planes, trucking in some cases, will have an impact on long-term demand growth. people talk about peaks. i can see a piquant demand by 2035 or 2040. that is the issue if you look at valuation, long-term valuation of an equity like saudi aramco. alix: michael, what do you think? michael: if you look at what sovereign wealth funds are doing , they're backing a lot of renewable energy companies. a lot of money going into india and infrastructure across europe. there is a deal that just went down with blackrock and gic where they invested in a european natural gas play. they are picking and choosing. the saudi aramco deal will be interesting. one thing to note is the decision of msci inclusion is a big deal. index, freen the money flows to that stock. it'll be interesting to see how investors are pricing that in. alix: also something interesting are the concessions being made on a technical basis to get this ipo. retail invest

that may skew the valuation we see. the question will be what happens when we turn to the international investors if we turn to international investors to get more people into the i.p.o. alix: thank you very much. turn to mcdonald's, the company fired c.e.o. easterbrook for having a consentionual relationship with the employee t violated the company's policy. he wrote in an email to mcdonald's employee quote, this was a mistake given the values of the company i agree with the board it is time for me to move on. joining me from london is erik fanner. what happened? erik: clearly mcdonald is taking a zero tolerance approach on any sort of relationship with an employee. we don't know all the details yet. they say it was consensual. they had had some allegations and questions earlier this year about sexual harassment within the company. so they changed their code of conduct. they had to act to the letter of the law. and move quickly to oust him. the big questionle is what happens next to the company. easterbrook is somebody

even getting that valuation might be tough.ling potential investors that aramco might be worth $1.5 trillion or less. in south africa, the country might be cheering victory in dodging of a rating downgrade. warren buffett still has not found any mega deals to tempt him. grew toaway's cash pile a record. .hey climbed 14% for the year continues to face questions of if he is been aggressive enough with his massive hoard of cash. housesis banning party and clamping down on unauthorized rave set its rentals. this after a fatal halloween night shooting in california. five people died in the incident. screening its high-risk reservations. global news 24 hours a day, and on tictoc at twitter. bloomberg. matt: thanks very much. the u.s. and china say they are close to agreeing to the first part of a trade deal. wilbur ross spoke exclusively to bloomberg, expressing optimism. the so-called phase i deal could be reached this month. he added that licenses will be coming shortly for american companies to sell components to huawei. >> there

, valuation, valuation >> we've heard it the whole way. we've heard it for 11 years. >> we have had multiple expansion in 2019. we had no earnings growth. you will get maybe 4%, 5% earnings growth in 2020. it is fair to look at valuation. that's one of the reasons why within the market what's going on now, to shannon's point before on bonds, i somewhat disagree on that when you look at asset performance in 2019, all asset classes are higher now you walk in 2020, you say what particular asset class i do want to be in? what's going on in the equity market now, there's money flowing to strategies and sectors within the market, and pivoting back and forth. the money is not coming out of other asset classes. the uncertainty that we have in 2020, it's the same type of environment. are you going to get out of bonds going into 2020 given the muted economic growth and a lot of the absence of clarity we have surrounding elections no, you'll hold on to those other asset classes. it will go back to equities and have aing valuation conversation is reas

that there was an excessive valuation. another sign like the big ipos or possible ipos that have failed this year including the wework one that failed. others think the signaling is very important. it could encourage opec to continue to prop of the oil price because they want to have it high before they sell a much larger chunk of aramco. a small stakeh and increase it over time. and then there is also a signal for other countries and what they might do with their state oil companies. my colleague pointed out that malaysia is considering selling part of its state owned oil company. they will play this over a long period of time. more of different micro signals. that is a big takeaway. anna: 1.5% is not much of a free flow. you do wonder how this trend towards missing the giant oil companies, how that rubs up against climate change and shifting mandates of investors. thank you very much, mark cudmore. firstget to the bloomberg word news from leeann garris in london. >> unrest is escalating in hong kong. police have closed t

i think the valuation is too rich. we see a lower valuation on a fair market basis. talking about the valuation, potentially being a reason for global investors to balk at this ipo. other have a sense about issues, governance, holding stocks in this day and age, especially by pension funds, may have led to this being a taboo holding for a major fund manager? >> this is still going to be the profitable company on earth when it lists. still the possibility it will be sale ever. shale more than $25 billion. obviously, this is a major proposition for any company to take on. as you mentioned, there are concerns around where oil demand will be in 30 or 50 years. attempt saudi arabia's to diversify its economy a bit, and they are making this into a purely domestic affair, which is not spreading the risk of future oil demand and prices. as this by woul choice? initially heard the $2 trillion valuation that the crown prince has set out, but that have been coming down. now, it will be 1.6 to $1.7 trillion. instead of investing outside the oil sector, they will be looking at $2

their founder has been criticized for these crazy practices the valuation has been knocked down again and again and it's now down 83 percent in just the last 3 months to $4900000000.00 now just this week it was reported that the we were debacle caused softbank to post their 1st last in 4 teen years what do we know about these failures of we work. well it's not just the failings of we work in the failings of the v.c. and the private capital markets because they're the ones who are actually fueling this entire boom of unicorns you know who aren't you actually don't even deserve to be called that as the economic research institute actually showed that 50 percent of you know course nowadays are overvalued they don't deserve this valuation because they actually aren't generate any profit for us you know core market topped out. 242015th when there were 42 unicorns newly minted unicorns that year we've never seen levels since then and that pace is just completely unsustainable silicon valley now has this competitive mentality and this phone will rush to bid on to like these new ideas these n

we would see the valuations go down. companies are trying to get deals done before if this is this threat -- elizabeth warren threat. people are probably trying to get deals done before that. that would definitely impact things. vonnie: tells about stryker. it is a $76 billion market cap company that competes with companies a lot smaller because each one specializes in a certain thing. it is stryker the umbrella company? joshua: i think so. this is another company in their portfolio. j&j and ate against lot of other device companies. , not a nicheer acquisition, but it is important for them to get further in that industry. vonnie: josh feynman, thank you for that. about 4%.wn some analysts think stryker could have used the money better. guy: volkswagen has begun a production of its all electric i.e. three -- id3. on site the ceremony, german chancellor angela merkel. also there, volkswagen ceo. speaking to bloomberg, the ceo said that changing infrastructure is the biggest hurdle to overcome as the company pushes on to b

regardless of what you think about valuation clarity going forward, u.s.-china.ined to trade that low and we'll see what happens when we get there but to karen's point i'm surprised it's not having -- this should be bigger nan cisco is my sense. >> what i would love to know and maybe you can only figure out by reading the transcript at this point is qualitatively where did they see -- was this a consistent hang back in terms of spend throughout the quarter or was it more recent as the china traed headlines got more tense. >> i think the whole quarter was bad. >> the interesting think about cisco on a fiscal calendar reporting later you might get more clarity in terms of what's happening recently in time. >>en a the pressure -- they process ut it out once before and now again. to guy's point the 46 number, 58 to 46 and here we are back again. but the problem i see going forward is we need to see them actually put us back in place with a quarter and they can't keep doing this because if the rest of the market isn't quite as negative, unless that changes in the next

saudi arabia lowers its target for aramco is valuation.y to overtake apple as the biggest public company in the world. and tripling gasoline prices. the president of the middle east's largest airline gives us his take of the aviation industry. here our exclusive interview with tim clark this hour. first, saudi arabia this week set saudi aramco is valuation well b

now we've seen criticism of the company's business model is this another one of those over valuations we're talking about and do you really see an i.p.o. any differently than these other field unicorns. well let's just look at the market cap of the largest hotel chain right now in the world which is marea marymount current market cap is 43000000000 and that's and you can drive to that market have based on their generated revenues air b.n. b. is air b.n. b. as big as marriott do they have the same consumer base as america can the world sustain. and have consumers like feeding revenue into these 2 giant entities if not that valuation is completely overblown and there's something very wrong with it. well thank you so much adam and christiane for that discussion on these you know koreans there i know there was a lot of hate or a that as i called it earlier today but thanks for giving us an update on that. thank you. if you're a follower of the american football and the n.f.l. specifically you no doubt remember the deflate gate scandal that rocked the super bowl champion new england patrio

what do we think the valuation is at this price?s going private make sense based on these numbers? ed: it is well below its high. he likes doing m&a. i am sure he is looking at the market and saying the market is not giving us their value. maybe it is time to go private. we should note, this company has been in private equity hands before. kkr owned it. they would be a logical partner if somebody showed up. you have to look at who can actually do this. of this many sponsors scale that could make this deal happen. you look at the brazilian firm, kkr, blackstone, but then the list gets thin on who could execute a transaction like this. shery: how has the company been performing so far? we have seen some cost reductions. ed: they have been good driving down the cost of the whole industry has been under pressure. we have seen a wave of consolidation over the past three or four years. a lot of the benefits from that have been realized. like a lot of things in health care, it is on a downward. drug prices, insurance is under pressure, and

it can only help valuation in my opinion. so maybe you get a little bit of the expansion.is is the higher enof valuation maybe you break through that. >> i could have power pitched disney and would have gotten shellacked because tim is a fan favorite and they just enjoy. >> i think disney is a fan favorite. >> disney is. >> interesting what you are doing there. calling me the fan favorite. very nice. >> i know the music that plays when i do that stupid thing. eck hanks mike chout the full show "options action" friday at 5:30 p.m. eastern time up next final trades. >> announcer: "options action" sponsored by think or swim by td ameritrade i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthus

valuations are attractive.ity to look at these companies, which are using these strengths to their advantages. you have to be more selective, perhaps more defensive part of the sector. we feel there are opportunities which are interesting. nejra: certainly interesting the point you make about them being perhaps a bit more protected from a democratic sweep in the u.s.. part of your thesis is that these are companies that stand to benefit if there is an improvement in u.s.-china relations. what if we see a deterioration in talks? does that change your thinking or thesis around industrials? frederique: we will oscillate dÉtente andods of higher tensions. we think this is the scenario going forward. we have to take a long-term view. at times, it will be more difficult in terms of that dual political area. nejra: so you think that the dÉtente we are seeing will carry through. in what way? are you expecting phase i to lead to phase two and perhaps even a roll back in tariffs? frederique: not an imminent signature of

sure, they will lend to big institutional investors, but at a $2 trillion valuation.ng rates would have been different even with instructions from the central bank. so it is not perfect by any ipoure, but pulling and after that i think was a tall order. it was the crown prince's decision to proceed with the ipo in this timing, and of course oil prices are really not high and are looking at a challenging first half of 2020. a difficult one to achieve over here. at the least they will pull a half success, but good enough for the time being. paul: do you think maybe they should have happened a few years ago? things have changed. climate change, growing distaste for pearl -- for plastics. are the best days for oil now behind it? ayham: we probably have one more cycle for oil over the long-term. still think there is various demand there. should this ipo have been done a few years back? i think that is part of the tension between the leadership and the former energy minister, who really insisted on a longer timeline. so, i would say that probably two years would have been g

not reflected in the valuations. are significant and not reflected in the valuations, whether you look at the rates market or credit market. jonathan: george, the u.s. is back to trend growth, i have seen evidence of the global economy bottoming out, phase one is dust and dusted. is it a mistake and that is your view going into next year? bonds are forward to scott mechanism, so you are right, we are getting ahead of ourselves. you see rates come down a little bit, you have seen credit spreads gap out a little bit, flattening of the yield curve. they are not content with what they've been seeing. there has not been a significant movement but the trend is showing you there are concerns up ahead. jonathan: six weeks ago to the day, the president sat in the oval office alongside liu he and said we have a phase one agreement. six weeks later, we don't have a phase one agreement. but a lot of the market is reacting as if we have a trade truce. forge: stocks were down three days, and then all of a sudden we had phase one.

francine: what does this valuation mean? stefano: i think saudi arabia has been playing the long game and is still playing the long game. when i worked there, they had been extremely cautious about or atting any valuation precise date on the ipo. it is goingion is to happen and now confirmed within the end of the year. 5%.ably below as i said, it is a long game. that is by far the most profitable company in the world. oil have the largest -- of in the world, something that is unique. moment.eing a defining it is a way to say, -- our main asset, the most important. thirdly, secretive asset. francine: what does the invitation mean that they are missing at home? so far, -- stefano: it is a statement that we are open for business, and we want saudi arabia to be in the international investment community. aaning they have organized future investment. innovation investment. addresstended to investors all over the world. that is a not a big statement, the largest ipo is going to happen first. i am sure it is going to be extended som

i think we have to make sure some risk is still present in the valuations.we are still seeing some of the risk priced in. when you take a look at what some of the sovereign debt has been doing, that acted as a decent haven as they wait out whatever the brexit outcome is going to be. once we do get an outcome or some sense of what the outcome will be, we see risk aversion trades unraveling or it might actually embolden people to stay put in something like the u.k. sovereign debt? lucy: the bigger concern for the sovereign debt is excessive spending from an extreme left government. that would be more of a concern for the gilt market, which has stayed relatively stable facing brexit because there's a lot of uncertainty about what brexit might mean and what the timing could be. i think that is more the consensus on gilt. four growth, both of those outcomes could be a further negative on growth, which is flat anyway. that is why i suggest you need to make sure you still have risk priced in to whatever it is you are buying for a further downside in growth domestic

that's a tell. >> target at two-year highs in valuation if it traded at mean valuation where would it trade about 100 that's interesting the put strike you chose something else interesting about the stroik if you look at the last 44 quarters where target reporting reported earnings and how it behave one month following the earnings result you would find out of 44 reported quarters it fell more than 10% only two times. 100 bucks is down 10% from where the stock closed today by selling that you mitigate the cost of putting on the traded carbably almost 30% of premium on the higher strike put but the likelihood it drops below that put you are selling very low if historical performance is any guide. >> for everything options axe check out the website. while there check out the supercool news letter. here is what else is coming up next >> announcer: it's been great month for stocks with all the major indices set sitting at record highs. but if you're worried the recent run is about to roll over our mike khouw lays out his volatility protection playbook plus calling all "options action" fan

based on the earnings, valuations are -- i will absolutely agree with lee and say they are full. would you be concerned as he might get a bit bothered about the market at that point # i think we're about 2% above the averages for the quarter i think he hit the nail on the head when he said it's not widespread i'll call it optimism. you don't have the levels of optimism that ordinarily characterize the end of a bull market believe me, if we had a significant move, the so called melt up in stock prices, we had a speculative surge and we got a big increase in optimism and became euphoria then i would say we're probably signaling the end of this bull market. too much euphoria is not a good thing. >> they can get tall 3,000 is the target for the s&p that you have. you said it remains intact we're above that today do you need to start raising where you think stocks can go over the last couple of months >> i don't know. it's a year in number. we're only a month and a half or so away. i feel pretty good about the 3,000. we put that there at the beginning of the year. i think the market h

and significant increases in valuation, as they're being chased by investors. of value in the downstream end of the market this is the end of the market where it's the data analytics of this huge amount of unstructured data and the opportunities to use that data in these end verticals that we've talked about. that side of the market, the valuations are still very attractive likewise, the down link subsection, so this is the market that's taking the data down from space, down to the ground, and doing that reliably, doing it with ever-great volumes, and doing that cyber securely this is a really underinvested market and there's some fantastic valuations in this particular market. so it depends where you're looking within this overall market >> so, mark, we're seeing -- we're starting to see some public market opportunities for investors right now. virgin galactic, perhaps being the most high-profile, having gone public here at the new york stock exchange, as the first commercial human space flight company. but in general, when you look at these new breeds, these

the valuation of 1.6-1 .7 trillion is more realistic. 5% of the stock being offered, it's really and i -- a reflection -- it's really a reflection of the expectations. are not even going to market to australia and canada. traction insome china, that will be a bonus. ity are trying to make sweeter to local investors. they are asking banks to give them more leverage. you can expect it will be pretty well supported. look for evaluation in early december. pay 75co is promising to billion dollars in dividends. how does that compare to other oil companies? >> pretty similar. this is the against company in the world by profit. you would have to think it is a decent investment over the long run. thequestion is how long fossil fuels industry can sustain these profits in a world where we are more concerned about climate change? theyou only have to look at drone attack in december to see the huge impact they have on the oil markets. a risk to global institutional investors. but as you say, i'm sure it's going to get support. is their response to th

, the risks are minimal but not reflected in the valuations.oday, we are in a place where the risks are significant and not reflected in the valuations, whether you look at the rates market or credit market. jonathan: george, it feels like for a lot of people it is the january 1, u.s. is back to trend growth, i have seen evidence of the global economy bottoming out, phase one is dust and dusted. in that backdrop, how do you allocate capital? is it a mistake and that is your view going into next year? a forwardnds are discount mechanism, but you have to look into the future but you are right, we are getting ahead of ourselves. you see rates come down a little bit, you have seen credit spreads gap out a little bit, the flattening of the yield curve. they are not content with what they are seeing. there has not been a significant movement but the trend is showing you there are concerns up ahead. jonathan: six weeks ago to the day, the president of the united states sat in the oval office the vice premier and said we have a phase one agreement. six

clarity no real clear around the valuation, as you say. government is not talking about what kind of valuation it hopes to see, and we really do not have any firm date on a timeline beyond that we are expecting to see the prospectus coming out on the ninth or 10th of november. so, yes, investors, there are still a lot of questions that they will be asking around this and how big it will be with the valuation. manus: matthew, one of my favorite themes at the moment is about the credibility gap. company, andng the bank of america, a $1 trillion gap in valuation. it research, or is it pretty darn hard to value the company? there areell, i think a lot of factors at play. on the one hand, the government has been very clear and ambitious about getting this company to reach $2 trillion, so a lot of pressure on the bank to get the valuation up as high as possible. if you look at all of the changes recently in terms of the tax and royalty rates and the dividend policy, that is all key into what is making this attractive and boosting the valuation.

you can make an argument the valuation is extended.ill continue to believe it's too valuable of a property to be trading as poorly as it had the last 20 or so months. >> how much is netflix spending on content this year $8 billion. >> higher. >> market cap of lions gate is $2 billion sounds to me like they should be hitting this from a different angle and maybe they get put -- instead of the acquirer get akwoird by somebody else and then you have a ready to make shop there. and you have some content. you have the studios in place. these things aren't easy to do and sounds lake a no brain are to me. >> there is more come up on "fast money" after the break here is what we have on the docket. >> gold bug or decline bull both under pressure this woke later earnings season is winding down but there is still opportunities to cash in on results. we'll take a look at how options markets are getting ready for what's to come when "fast money" returns. sundown vitamins are all non-gmo, made with naturally sourced colors and flavors and are gluten

we seem to also be in a moment with private valuations. have been in venture capital for a long time. what do you make of this moment when people are trying to decide what something is worth and there is disagreement out there? joe: i am not really investing as a venture capitalist so much. maybe privately as an individual. >> but you watch the market. joe: i am very aware of it all. >> hyperaware. be. you can't help but i would say that, clearly, private valuations are very high and there are some structural issues going on here with regards to the giant funds that have been raised and the prices they are willing to pay for some of the startups or a little bit later state then startups. i think the public and private markets have to figure this out. this is no different than what has gone on in the past to some extent. we have had these periods where private valuations have gotten what some believe to be too high. public company valuations have to make do with all that. i think it will all work itself out. >> the idea of ipoing, will it m

what foreign institutions have been willing to pay in an effort to lift the company and a valuation that is acceptable to the crown prince mohammed bin solomon who is making this i.p.o. the centerpiece of plan economic reform saudi is officially combining the i.p.o. to the kingdom and gulf states aramco is the world's most profitable company but this is a bet on oil at a time when global demand is expected to slow from 2025 due to measures to cut greenhouse gas emissions and the rising use of evey's there's also the overhang political risk as saudi government will continue to control the company given these risks for an institutional have been unwilling to sustain the $1.00 trillion dollar valuation and aramco now has instead that has to rely on local demand this is a huge blow as i.p.o. was meant to bring in a large pool of quality investors who are also shareholders and around goes competitors such as royal dutch shell and exxon mobil aramco will not be able to sell shares directly to investors in the u.s. and other markets as i.p.o. will be restricted to saudis and a select group

valuations can go from insane to outright stupid. the feeling with apple, when you have the smartphones shrinking why? because earn of you on the set that is a smartphone there is 5 billion out of the 7 billion in the world with a smartphone it's like pcs. they went threw 7 years of no growth with apple my view the view is that the multiple smub in the teens not upper end. there is no growth because it's saturated. >> you mentioned you moved apple money to other places in the market what is your highest conviction position at this point >> well, it's sort of related to apple. and i think people get it confused but i think when you look at next year the biggest trend and why i think a lot of people will be buying new phones next year is 5g. so what 5g does is it increases data speed by 10 x one of the things that's coming out of that is augmented reality features they'll be very interesting. we own a company called momentum provides laysers that make that possible when xilinx blew up and cut the forecast recent. we bought that they pr

largest listed company in the world at $1.00 trillion dollars that is still less than the 2 trillion valuation the government had for officials back the i.p.o. all the demand from foreign investors was only lukewarm. let's bring in a head on the air he's an investment analyst at the share center and joins us now from london it will be the biggest i.p.o. of all time but the saudis were planning to make much more from the sale why did they have to pay back their expectations. well i think their expectations were ultimately slightly high to try and valued the overall. business 2 trillion to me was partly a vanity project very valued and when they were when they were asking the overseas investors to get involved it was lukewarm pretty much of what he said that it's going to be 2 trillion is far too much more realistic valuation now seems to be around the $1.00 trillion to $1.00 trillion but even then i think the market in general still believes that that could still be slightly on the high side so i think you know just adjusted to reality to a certain degree was the valuation the only reason that

you get to a sprays where valuation at some point always matters.shouldn't trade at 35 times even if the u.s. same store sales comps are oh growing at 5.of 6% there is a limit to what people will pay the rotation in the market is everything about this stock. >> if you see a rotation out of starbucks and mcdonald's shouldn't we see similar rotation out of proctor and gamble let's say. >> maybe you are starting to because people say if the market is value rally why do i need these ridiculous value stocks when i can get fedex. >> can i say. >> you are why even ask. >> there is a stock today i think november 1st saturday, second november 4th monday shake shack reports after the bell. >> uh-huh. >> if you look it's round tripped as breakout from august back down to the $80 level now tim is right valuations matter. and the valuation is this is ridiculous but 19% short interest one has to wonder that if shake shack says anything remotely god on monday will you get a move to the upside i think you may. >> you worked at shake shack some time. >> i did i was

the valuations, the conflict of interest?hat other potential violations, for lack of a better word, stood out to you? we have been over the corporate governance and the way adam was paying himself $5 million he was trying to get personally for the wework name. we saw that in the document. with the revised this one, that was not there. we see aggressive things kind of going on within the document that is -- that investors want to see changed. taylor: what would you like to see from the company next? barry: i think with a new management team they need to really hone in on showing a profit. i think in order to do that with a need to do is kind of stop the signingte and stop new leases. maybe not cut it to zero but pulled back on signing new leases and concentrate -- but pull back on signing new leases and concentrate on projects already in the pipeline and getting those units to stabilization when i was looking of thes-11 about 1/3 units were stabilized. that is another 2/3 in a process trying to get to stabilization and full oc

it suggested the struggle to pinpoint a valuation. they will list on the stock exchange in riyadh and likely start trading next month. >> it is very safe. have full proof to that, you see the oil prices. oil prices went up the first two days by 20%. then it came down by 10%. in all the future traders saw this as an event. we have 1/8 of the oil production in the world. in the oil traders, they saw this as an un-event, and that means it is really safe. su: okinawa, the governor there is warning the u.s. to look elsewhere as the pentagon hunts for sites to deploy new missiles. the governor says any attempt to place new weapons would be firmly opposed by local residents. he was elected last year on a campaign to move the u.s. airbase out of the area. he says okinawa carries an unfair burden by hosting half of the 55,000 u.s. military personnel stationed in japan. at least 200 people were arrested in hong kong as pro-democracy protesters clashed with police once again over the weekend. on saturday, police fired tear gas and deployed water

so it's not just the club, manchester, that's getting this valuation.entire group, which includes a lot of teams. they're building a stadium so they bought a stake in a company, not the club. >> so by doing that, you can inflate the value of your other clubs. i think softbank tried that. >> but do you know so the top most expensive, most valuable teams in the world, number one, the cowboys. number two is the yankees. >> do you think the cowboys are worth more than $5 billion >> but number three, number three, you know what the third most valuable team in the world is rial madrid. so it's -- it's -- you nknow, these teams have gone up in value. they're worth a lot. it's mainly because of the monopolies the teams are. >> just to your point about the asset class, we are starting to see more billionaires sort of take an interest in some teams, right? there was a report a few weeks ago. we talked about it on wex i believe about jeff bezos potentially eyeing the seattle seahawks it was in the post we'll see. >> liquid market and it's such a strange market, it

you trillion dollar valuation is potentially not likely. -- but the $2 trillion valuation is potentially not likely. >> saudi aramco announced what has been building up the last three years. the train has left the station now, i guess. all we really know is the rigors going to be a lifting on the -- a listing on the saudi stoppage change. -- a listing on the saudi stock exchange. there is no sign of how big a stake in the company the saudi government plans to float. the government is not talking about was sort of evaluation it hopes to achieve. we don't really have any firm dates of a timeline beyond the fact we are expecting to see the prospectus coming out on the ninth or 10th of november. investors still have a lot of things, the questions they're going to be asking around this offering and how big this steak is going to be and the valuation. is that with earnings and it is not a pretty picture. shares are falling after posting a third-quarter loss per share and gross bookings that missed analyst estimates. also uber eats. >> when you look at the top line numbers, the revenue number w

with respect to your question, private market valuations are different than public market valuations do a deal one of us could be horrifically wrong. when you talk about a public market, it's every investor contributing -- >> it's also bringing discipline to the private markets >> what's that >> it's bringing discipline to the private markets because the private markets are having to revalue -- >> a line in the sand has changed the psychology in the market it has burst the concept of let's spend everything just for unlimited growth so we see a post wework world we live in. >> why is it wework? it feels like -- i remember being out in l.a. the day of the lyft ipo actually. you saw it with lyft, and you saw it with uber, now we've seen it with peloton. they can blow through expectations and the stock still goes down. >> well, it's a question what are the expectations i'll say this. it was building towards that, but we've never had a situation before where the company went from 47 billion to 7 in that kind of period of time that's breath taking joe is laughing about that that's very tru

the godfather of the venture capital industry, alan is here to look at private valuations and where the growth in the economy is today. it's been an exciting year on wall street, the dow closed above 28000 for the first time ever, rockers all over wall street several big-name companies went public in filed ipos but has all been peaches and cream, many of those fell flat like uber and slack and then the trade war with china. all the successes and failures keep investors on their toes, joining me too discuss it is stacy cunningham, the president of the new york stock exchange. thank you for joining us. how is business, give us your take from an inside view of how things are going capital market. >> it seems like a long time ago we began 2019 and a lot has happened since then. if you look at the first quarter of 2019, the government was shut down so the ipo market was non-existent if you like a really long time ago. the first quarter was then in the second quarter was tremendously busy on pace to be a record year despite the fact we were shut in the first quarter in the third quarter we ha

-- statup valuation, it's paper profits have also raised questions.loomberg. ♪ taylor: after the wework fiasco, softbank's startup model has been under fire. investors balked at big losses and troublesome governance. the company's accounting drew scrutiny, as softbank provides little transparency of the profit gains on its income statement. thank you, pavel, for joining us. walk me through the story, the difference between paper gains questioning softbank's model. pavel: we have had two-some years of vision fund. we have seen it in action. while there has been a sneaking suspicion that a $1 billion fund, a proverbial 800 pound gorilla, will do something to devaluations,- it was not until the wework fiasco that we start to see results. we took a more systematic approach, see how softbank contributed to the inflation of the valuation. the second part is how softbank books these gains on their balance sheets. in the past two years, the vision fund emerged as the biggest earner for softbank, far outpacing sprint and domestic telecom operations. it became

a market of investors sets a valuation, so things can be volatile until then.ie dimon also said something that softbank is also addressing, which is changes in corporate governance. that is something we have been waiting for forever here. softbank, right now, according to the financial times, is thinking about tighten the reins -- tightening the reins in terms of corporate governance. that is something you heard jamie dimon also address. taylor: you know, another story that caught our attention here as we look at the tech landscape has been robin hood markets. there was a story coming out that said basically, put down a little bit of a deposit on margin and you get infinite leverage. there is a glitch in the system. what is it? sonali: basically, you have a certain set of robin hood users who are selling calls and that money is being counted in that user's capital. and so, this is such a timely story. 2020, away from money thousands of people were meeting about the future of fintech. once we are borrowing from a firm, you're becoming a bank and a personal hedge

is there a meeting in the middle in terms of valuation?services and disney has the biggest scale of what comcast is doing with peacock it's an advertising supported service. why wouldn't you take it then you have discovery with the incredible like niche services that food network kitchen is impressive and the ancillary revenue whether it's ecommerce, kitchen appliances, whatever they do. it's really interesting. that's kind of another type of service. >> so the 160 price target, how much of that 168 is the dtc domestic and international and what sort of valuation do you place on that if one thinks that netflix's valuation should come down and disney should go up >> we've done a bull/bear. our down side is close to 120. our up side is $200. 168 -- >> oh, wow. >> a lot of it will depend on the performance of disney plus we have a range for the three services we just discussed just disney plus alone, which will be the bigger driver? that's where the volatility is. >> that part of the business presumably is riskier part of the business because

littlelyst says he sees downside and cites a favorable valuation. investors are overlooking key assets. a floor of five dollars for the stock. and $20 price target, citing positive trends for both cloud related security and content delivery networks. the analyst says that while there are some concerns around the competitive dynamics, cloud fair -- cloud flare's platform is differentiated enough. namuraal from the buy --at&t's new price reductions response show vulnerabilities in growth trajectory. now, golden state warriors owner has many opinions on the industry as well as valuations. on monday, he shared some of those views with the stanford graduate school of business. >> i was a guy who came out of a very different background. andme -- i was a science technology major, i didn't know much about business. i liked it. wast in, i came here, it one of the best schools then, too. it was a great experience. for me, perhaps better than some other people because i learned so much. >> you learned a lot about silicon valley which is where you really made y