amazon getting downgraded at sun trust, and the analysts there bob peck is behind the call, and he joinsis our call of the day. call of the day, bob, because you've had a buy rating on the stock for two years. where today? >> yes. thank you so much for having me. stocks have done very well. almost 30% recent earnings for 50% instead of recent lows this year. they're talking more about ebida multiples. the capital intensive business, you really need to focus on precash flow. catalyst for the call, amazon at 10 k broke out further information on capital, and basically more cost and hence the free cash flow is lower, and that multiple is 49 and something hire. close to 70 times free cash flow. just six months ago, not even perhaps, investors couldn't have been more negative. they pushed the stock down dramatically. it had this nice run. if you are saying it's expensive today as one of the reasons for the downgrade, where was it eight months ago, a year ago? that was the biggest knock on amazon that it was too expensive. >> yeah. >> when you take a look, you'll see it's around 40 times. back

for more on the latest from facebook, bob peck with a buy rating on the stock. always good to see you. in terms of turning messenger into this sort of portal for e-commerce, how quickly can that happen? >> we think it's a big deal. we think messin messaging, one last things you do at night, one of the first things in the morning. the next logical step is e-commerce and payments. we think it's big deal. we value it around a $2 billion opportunity for them. >> by when whooefr amount of time? >> over the next three years or so. it depends op how quickly that ramp takes place. we have different conservative estimates as far as take rates, a bunch of different scenarios to look at it. but it could be much bigger than that. >> it can't be that easy though. what are some of the concerns in terms of not having that number materialize? >> i think the one big thing they bring to the platform or to the sellers is this 1.4 billion people. if you can bring that audience to any of these sellers, whatever it happens to be, whatever the merchandise happens to be, a small take r

joining us on the phone this morning, bob peck. >> good morning. >> we just had a discussion about theifference between today's nasdaq and the one from 15 years ago. what differences do you see? >> it's funny. even though you're having these highs, you're having certain stocks that are still relatively cheap. so while you have had strong momentum stocks, you do have a good handful that are also relatively cheap too. >> i look at the market, i see averages around kind of average to high where it's been historically. you have some things which are very over value and some things that have very cheap. how would you assess it overall right now in terms of nasdaq overall being priced? >> i completely agree. we look at a stock by stock basis. you have momentum camp and value camps. numbers starting to look towards '016 now. any of these companies beating the estimates out there are getting the premium valuation. >> some people say this is a psychological level, we might see a pullback in the dnasdaq. others say x we'd be talking about nasdaq 30,000. how much room is there to keep going? >> i

it might signal an increased chance of cash return sun trust bob peck says investors believe capital return is a real possibility at the search jibt which is why he says you should see that stock as gaining nearly 10%. as peck points out, that was not going to happen until a new cfo was hired and now that is a done deal. google's hire does come at a sensitive time for silicon valley. the community dealing with issues of gender discrimination in the trial of ellen powell and cliner perkins. that's sure to put pressure on other tech giants to at least be more aware of the role diversity and gender in their boardrooms. >> we're going to talk more about that with a couple of female gc's. thank you very much, josh. >> you got it. >> good to have you here. over to you, ty. >>> the american housing market getting a boost. new home sales soaring. seven-year high despite the brutal winter weather. diana in washington with more on what's fueling it. these numbers are a little surprising, diana. sfwroo they are. they certainly surprised the street, tyler. the jump in new home sales was dramatic