he's the ceo of facebook. you're a shareholder hoping the stock goes higher, and you don't give a darn whether mark zuckerberg is on the call or not? >> will the hooded one finally share his wisdom or keep his vow of violence? time to find out. fresh on the trading floor, this is "fast money." >>> live from the nasdaq market site in new york city's times square, i'm melissa lee. what we're seeing in the after hours session, a disaster for the most heavily traded ipo in history. facebook plunging to an all-time low. the stock is down 8.5%. we're waiting for the conference ta call to start. it is moments away. two key points here. as for a the quarter, joe, what do you make of it? >> i think there's two important questions that fundamentally when you look at the stock you have to ask yourself. number one, are they experiencing fatigue? i truly think they are. ast it's an all-in-one product. when you compare them to what others may do on linkedin, it really boils down to needing to go on the platform or wanting t

facebook fails to impress.eir first-ever earnings are out and while revenue numbers are up, shares are way down. len ramirez is at facebook headquarters with more. >> that is right, one analyst said today that facebook would have had to have a spectacular earnings report today to avoid what happened to it later on wall street. as it turns out that system had a good report today, but not good enough. facebook is still the most popular social media company in the world, announcing today they have registered almost 1 million users, five under 52 million of them are active every day and even though their first earnings better than the wall street forecast, the stock still got hammered, slipping another 10 percent in after-hours trading. >> the stockton out at 38 and it is currently 24.5. >> this investment adviser up the street from facebook in menlo park is not bullish on his new neighbors. >> social media is almost like fashion and fashion changes. i remember my space, and i remember when myspace was highly value

(stock market nats/opening day) facebook was valued at a facebook was facebook was valued at a hundredillion dollarsson the day it went public.....making it it went dollars on the day hundred billion dollars on the day it went public.....making it the countrys most valuable company..... but almost immediately, its stock began to shrink and questions began to grow over the company that put a priie on friendships. (16:54:00) (mckeenaa) "think about it you have a hundred friends and your targeting our deepest its insscurities as beings.....and they do that to profit off of you....!" (17:12) (goff) thousand people goff, facebook is clients a new level of exposure..... (23:07) (goff) "thats 702 people who are seeing because their friend shared that now....facebook is finding new abelll fox 45 news at ten. next in sports... sports...ed reed says... he's suiting up this year.beenn doing during what he says he's year.suiting up this ed reed sports... 45 news at ten. jeff jeff abell, fox 45 news at ten. next in sports... spoots...ed reed says... he's suiting up this year.what he says he's been

facebook opened at 42, okay? and then shot up to 45 in the first 15 minutes, burr the stock never climbed back up above those levels later in the day. so here, here and boom. that was strike one. a knuckler enthe outside corner. how about redler's second test? if on the first day the ipo drops below the offering price or closes near the lows of the day, that tells you the deal was mispriced and mishandled. for facebook, that price was $38 and on day one it closed 28 cents above that level, which was the second red flag in a sign that you had to head for the heels. sure enough, the lousy fist day action caused a selling frenzy which caused facebook to fall another seven points in just two days. a pain that you could have side stepped for following these two simple rules. if anyone remembers when i was on tv when this happened, oh, my gosh, it's got to hold this price, got to hold this price. now, check out this chart that showed the first dozen days of trading after facebook became public. after the initial crash

facebook fell as much as 9% to $24. erika miller reports. >> mobile is a huge opportunity for facebook. our goal is to connect everyone in the world. and over the next five years, we expect four billion or five billion people to have smart phones. >> reporter: finally, investors got a chance to hear facebook c.e.o. mark zuckerberg discuss his company's business strategy. he told investors that the social network now has 955 million users, a near-30% increase in just one year. facebook's biggest challenge is figuring out how to adapt to the growing use of mobile technology. nearly all of facebook's revenues come from advertising, and that's more difficult with smaller screens. that's part of the reason facebook shares have gotten crushed-- they're down nearly 30% from the offering price of $38 in may. but some analysts still think the stock's a "buy." >> i think making money on facebook ultimately comes down to their ability to monetize mobile. it's almost binary. if they figure out a way to make money, the stock will be

if you take a look over half the facebook users are accessing facebook through mobile devices.ns is they'll have to figure out a way to make money off those users. if you're scrolling through your facebook app chances are you won't see many ads on your phone and you probably won't click on them if you do. that is going to be a huge problem and it's not just something facebook is facing but something a lot of different companies are looking at as more people are going online on their smart phones and on their tablets. >> laurie, thanks so much. for more detail on facebook log into cnn money.com. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. >>> well, the first official game of the london olympics kicked off a few moments ago but it is the noon hour i am paying close attention to, because that is w

so what happened to facebook? we asked bill whitaker to look into it. >> reporter: melissa porter is marketing director for grocery outlet bargain market, a discount chain with 174 stores across the country. a facebook user herself, she sees its potential to reach millions of customers. >> 51% of the people in the country have a facebook account. and we think for our demographic, our customer demographic, that a lot of them have a fab account and we've seen it. >> reporter: but the market chain couldn't figure out how to make advertising on the world's largest social network pay off. >> it wasn't easy to figure out on our own. >> reporter: porter's problem is facebook's problem with more than 900 million users sharing personal information, their likes and dislikes, facebook seems like an advertiser's dream. like its initial public offering that landed with a thud in may, facebook's advertising prowess also seems to be a good dose of hype mixed in with reality. g.m. pulled its ads all facebook when it saw no eviden

>> it's a sign that zynga is becoming less important to facebook, and part of the problems is facebook started directing more traffic to games outside of zynga. >> so we'll see if there is similarly in terms of the advertising. what do you like more, facebook or amazon? >> it's a tale of two charts. the age of foolishness. let's start with the bad news, facebook. this well defined down trend from the ipo, the stock settled into a pretty nice trading range. 28 on the low end, 33 he will resistance on the high end. that now projects measured downside to $25. we're a selling of the stock ahead of the earnings, we don't like that $23 target. >> how much lower does facebook go in your view? >> 23 could be conservative in our view. it's not a good combination. >> you want to buy amazon? >> i want to be a big buyer, let's bring up the chart and i'll show you what i mean it's 15% in one day alone. that's the last time they reported earnings. we think history repeats itself. the stock setted into a nice trading range. we're looking for a upside break out. it will probably measured upside. you w

but it's nnt all bad news for facebook.plus users may be happier-- but they are still far ouunumbered by facebook's more than 900 kosik in new york. alison - banning gay members... pin boy scouts. scouts.how the decision was was made... and how long it took to reach the controversial ... resolution. &presolution.a megabus meltdown. whht happened toopassengers headed to baltimmre that sent one to the hosptiil and leftt the others stranded in jersey. jersey. i don't smoke cigarettes and don't understand why anybody would. but that's not foo me to decide. cigarettes - more specifically, the manufacture and sale of cigarettes - issan example of crony capitalism. tucced deep inside the 600-page highway bill recently signed into law was a small paragraph that effeetively wipes out roll-your-own cigarette shops. roll-your-own shops are mom and pop operations where customers purchase loose tobacco and cigarettes. they're cheaper than the name-brandss and they don't have chemical additives. roll-your-own shops were not banned due to

facebook trading down right now., south bay police continuing their search for a suspect who stabbed a man near the corner of east st. john and second street. bob redell is live with an update on that investigation. >> reporter: that man was found on the sidewalk in front of the trinity church. this is the oldest church building in downtown san jose, not too long ago two of the friends of this man came back to the scene, they were hugging and consoling each other mourning the loss of their friend stabbed to death last night around 8:30. they wouldn't speak on camera but they just returned from the police station where they were speaking with police. it's not sure how helpful they were on leads. there has been no description and no arrest so far. police found out last night from several 911 calls. people reported seeing this man lying face down in front of the church. they thought maybe he had been hit by a car but they realized that was not the case, he had been stabbed at least once in the chest. the man in his 30s

fox-baltimore dot com...and on our facebook page...facebook dot com slash fox-baltimore..." album. the jackson family drama contin. continues...the matriarch of the family ... katherine jackson... no longer the guardian of michael jackson's . kids.find out the family member who now has custody of the kids. kids. 3 ((break 1)) wow, look at this bed! this nightstand! this wardrobe! what are you doing here? you're in ikea. my dream bedroom is in ikea? yes. what's that bedroom over there? that's your husband's dream bedroom. whatever your style, take home your dream bedroom together. ikea. the life improvement store. the lines, the cost, the hassle. ♪ express yourself [ female announcer ] why not try coffee-mate? with over 25 delicious flavors for a fraction of the cost of the coffee house. add your flavor, with coffee-mate, from nestle. ((bump in)) 3 ((2-shot toss to weather)) 3 ((ad lib meteorologist)) 3 ((traffic reporter ad libs)) map --joel--map 95 at 395 map 95 at 195 3 3 3 3 you may "like" things on facebook...but that could soon change! change!the new thing... you could

the first three days of trading for facebook following the ipo. and tons of deals why this deal was a walking, talking catastrophe, but as rather sees it, you could have focused on the supply and the demand after it became public. you knew it would be a mitigated catastrophe right off of the bat and these are tools that could be applied to any ipo and two we will talk about late mer the week and not just facebook. after the company is public, if the stock cannot stay above the opening price or the high of the first 15 minutes, that is a huge red flag indicating that the supply is overwhelming the demand and the stock is not worth trading. facebook opened at 42, okay, and then shot up to 45 in the first 15 minutes, but the stock never climbed back up above those levels later in the day. so here, here, and boom. that is strike one. a knuckler on the outside corner. and how about rubw about redler te test? if the offer drops below the offering price or closes near the low of the day, that tells you that it was mishandled. for facebook, it was 38 and

"outfront" tonight, facebook not making many friends this evening because just a few hours ago, facebook came out with its first earnings report as a big public company. and it did do about what people thought. revenue was up 32% from a year ago. that may sound good but the problem is facebook's shares are taking a big hit. you remember, this is a company that was second biggest stock market launch ever. today facebook shares closed at 26 a share. you see that black diamond-looking ski slope. it's falling even after the market closed tonight. down about 30% from where it went public. this obviously has hurt a lot of people who struggled to try to get shares of this ipo. why are people so nervous? there's one word and it's money. during tonight's conference call with investors, mark zuckerberg, the ceo of facebook, made it clear that making money from advertising is a top priority. >> we know that social ads perform much better than nonsocial ads so our job over the next few years is to increase the percentage of ads that are social and engaging. >> social and engaging ads. well, you know

reporting earnings here -- and facebook revenues also at $1.18 billion on facebook revenue. we were looking for $1.15 million. the stock takes a hit right off the bat, and fb numbers coming out. let me get the facebook story and come back and talk about starbucks. >> thanks, that's right, facebook revenue coming in stronger than expected at $1. 18 billion. that is slightly greater than consensus. that eps number coming right in line with expectations, 12 cents per share, now looking and there is some big charges, if is effecting gap eps. looking sat some of the key numbers here, we have the monthly active users of 955 million. that's an increase from a quarter ago. daily active users is 552 million. and most recent quarter, and mobile active users 543 million. that is obviously an area why facebook starts so show real monotiization and get the full release here just to see some of the additional color commentary. but the users are growing very quickly. looking at the payments business, on the heals of their negative earningings, we did expect the payment business to be hit,

facebook has had other partnerships with abc, with politico.h so with so many people trusting their friends and liking things online and making statements and living their lives online i think facebook is becoming a real force in part because it has such great reach, so many people. hundreds of millions. >> and facebook is really now the grass-roots campaign of this election. people now are going to facebook to see what their friends are doing and how they can join in. at the end of the videos, for example, that barack obama posted is always a if you click here you can donate to the campaign. >> so it can be a fund-raising tool as well. >> suarez: but liking something is done so easily that i'm not sure it really ends up mattering that mitch. there you are looking down your column of little misses and things that have been dropped in your lap by your list of friends. >> remember, ray, that you are broadcasting not only the fact that you like something but it could be a video that could be shared, an argument that we've made online. you're narro

facebook is a great company. there's nothing wrong with facebook. it's growing like crazy still as you said. they're figuring out how to make money. the fact of the matter is they priced the ipo so high it's priced for perfection and when they turn inormally great numbers the stock's going down. that's what's going on. >> there are two things that determine whether it can succeed, can it make money and can it grow? facebook certainly is growing. what about the making money part? >> i think you brought to the point about the cell phone and not being able to monetize their mobile apps. i think that's still going to be a major issue going forward. i don't think anybody's truly been able to monetize anything off of a cell phone. i mean, the only people that really make money off it are, like, verizon and at&t. i think they're still struggling to figure that out. it's going to take them a while where they could be profitable on that end. >> i got to say, it's going to take a while but the world is moving to these sorts of devices. somebody will figure it

so why does redler think facebook is a buy?e says he now likes facebook for some of the reasons why he initially hated it. simple supply and demand. as in the supply of shares versus the actual demand of them. let me walk you through it. first, take a look at this shart chart, which shows you the first three days of trading in facebook following the ipo. there are a ton of reasons why this deal was such a walking, talking catastrophe. but as redler sees it, you could have saved yourself misery and money by focusing on the supply of stock and demand shortly

ktvu's robert handa is live at facebook headquarters with why the stock is slipping. >> reporter: facebook is still growing and will soon announce it has one billion users. the sheer number of users offers some hope for the future, but only if big changes are made. >> reporter: at one time facebook and zinger seemed a good fit but facebook's disappointing earnings, combined with zynga's disastrous report, reflect what some told us. >> i like playing video games but through facebook not really. i don't like the ads. >> reporter: facebook met expectations today, the charnels associated with the ipo -- the charges ashed with the ipo resulted in a loss. zynga's ceo said declines in engagements, how long people played were do to changes facebook made. he sited competition. >> the other properties coming up, are not coming up under facebook, they are coming up under their own social networking engine. >> reporter: he says the number of users is still key for investors. >> it is a long term investments. should be a buy and hold and not get caught up in making the quick money right now. >> reporte

the facebook results. reported as a pubically traded company. this is what zyga said. a decline due to a more challenging environment on facebook. also trade lower right now down by about eight and a half%. this stock, zynga, is trading at $3. this ipoed at ten bucks a share. >> i am shocked. shocked that people do not -- are weaning in their interest in virtual farm animals. they continuely have to come up with the next best game. that is incredibly difficult to do. think about apple every three or six months they had to come up with a brand new product. a completely brand new product. i think you stay away from this. i think in facebook, there is a difference. you're getting a sell-off. the only reason why you buy facebook is you believe that mark zukerburg is the next steve jobs. you put them in your drawer and you wait 30 years and you will be a happy person. >> that is quite a belief. >> i think there is good evidence for it and at these valuations, why not? >> you are a buyer of facebook? >> yeah. bu

facebook did it at 32%.oogle grew their earnings as well at about 16% where facebook was essentially flat. you look at that and stay the price to earnings that we're paying off the last quarter is 16 times. and you're paying 48 times. so you have a similar issue where you pay about four times for google and 12 times for facebook and the growth rates are not that much different. >> just to be clear, dan, you didn't cover the short yet, is that what we're hearing? >> i would say we currently have a short position, yes. >> the psychology in investing for a name like this, a seasoned technology investor, aren't you betting a lot in the future more so than other industries? it is technology, a relativity young business, why not give mark zuckerberg the benefit of the doubt that he will get it right, monetize mobile, and make this company everything that people believe it will be and buy it right now? >> you have to look at it this way, i'm sure he will do everything right. the problem is what will you pay for it.

ubs has a big problem with facebook. it could be as high as $350 million. maria broke the story here first and now she has more details on ubs's massive loss in the facebook ipo fiasco. and 650 million people in india without power, could this happen here? tweet us. [ male announcer ] it's a golden opportunity... to experience the lexus performance line... including the gs and is. [ engines revving ] because control is the ultimate expression of power. [ revving continues ] ♪ during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection. like the elephant on my chest... he thought he was having a heart attack. she said, "take an aspirin, we need to go to the hospital." i'm on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. i'm very grateful to be alive. aspirin really made a difference. we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus,

>> i have no interest in facebook. i don't understand facebook, i never have understood facebook and i have to state, how can zuckerberg not be on there? what kind of a diss would that be to wall street not showing up. showing up in a hoodie was one thing but not coming to his own earnings statement would be beyond the pale. >> i agree with you, but here is a guy that has told you from the beginning that he's not going to manage the company for wall street earnings. he's not going to manage it quarter by quarter so i agree with you. i have no interest in facebook as a trading vehicle. if you think that mark zuckerberg is a genius, that he invented facebook, he can take 900 million users and turn it into something, then you buy facebook. you the it in your drawer and wait 30 years. other than that i'd say away. >> you're selling him a little bit short, pardon the pun, with all of the work he's done. julia boorstin has breaking news on twitter. what is happening? >> well twitter's site was reporting several outages, twit

>>mark: facebook did not issue a forecast which is uncommon for most companies. >> facebook stock is$22.98. >>darya: james is not afraid of forecast >>james: today's temperatures are going to be very similar to yesterday's. we're looking for sunny skies. do not worry about the overcast conditions it will break up and go away. we will see warmer temperatures for saturday and as we head toward sunday will see even warmer temperatures. next week we will introduce the '90s into the mix. >>george: we are looking at the conditions of around the bay area. there is no back up and no delays. it is a little slowing for highway 4 and interstate 580. it is still an early 16 minute drive time from the coyote valley could >>darya: newly police -- new work of these are looking for for robbers that brought the jury starts -- jury stored inside a mauled. they walked into the store and they told with customers tuesday backing. they smashed display cases and sold jewelry. in one point shots were fired inside the store. the man got away. the blessing driving two different cars year there were northbound

just go to our facebook page.. facebook dot com slash foxbaltimore... / become a fan...try form... to enter..../go to our website... for complete contest rules. 3 news concerning the make up of some baby products.the f-d-a's action to and what it will meen for he safety of children. the car on the left was filled up with low detergent gasoline. the car on the right was filled up with bp gasoline with invigorate. which helps clean and protect its engine so it can get a few more miles per tank than the car on the left. go a little farther with bp gasoline with invigorate. now you have the power to lower gas prices with the bp visa with pump rewards. apply at choosebp.com the... f--d--a... has... officially banned... using... b-p-a... in... certain baby products. products.b-p-a... is.. .a... chemical... used in .. products... like cans... and... plastic bottles..../ f-d-a... regulations... now prohibit... the use ...of b-p-a... in... making baby bottles, ... sippy cups ... and... cans ontaining.. .infant formula..../most... manufacturers... have already stopped using... b-p

terry mcsweeney is live at facebook's headquarters. >> reporter: this a chance for facebook to prove continue investigators it can take its 900 million plus users and turn that into profits, big profits, one step at a time. this is the company as you mentioned it had a rough time during the initial public offering last month. it wants to show it can turn popularity into profits but not in a hurry. facebook says it is not going to be happening in a big hurry. in a filing last week the company says its mobile users continue out-pace the number of ads on its mobile platform and ads provide most of facebook's revenue. the number of mobile users is rising. analysts are expecting earnings of 12 cents per share on revenue of over a s -- over a billion dollars. facebook public may 18th. things didn't go well it started at 38 now down 24%. nasdaq had trouble contributing to the mess with a number of glitches on that problematic trading day. yesterday, zynga announced disappointing earnings. it contributed 12% to facebook's revenue last year. investors will look at how many users does facebook

now, ask yourself when's the last time you clicked on a facebook ad or even notice add facebook ad.hose are some of the head winds facing facebook. user growth has slowed. it hasn't figured out advertising yet and each day more and more of subscribers move to mobile where it has more trouble advertising. facebook has been very honest about its troubles in fact, it said it doesn't necessarily want to make money. it filed that in some financial paperwork. here is a quote from mark zuckerberg who said we don't build services to make money, we make money to build better services. another hint, a company that relies heavily on facebook game maker zynga said it didn't make any money in the previous quarter. zynga and facebook's businesses are related. i don't know you could extrapolate a ton out of zynga but it's not a great time as we wait for numbers. >> thanks so much. >> waiting to see what the forecast is. i think it's going to be nice. >> scott mcgrew looks great out there. we call this magic hour. temperatures are going to be comfortable. 77 degrees at noon, up to 82 at 4:00 p.m. 7

let's move on to the facebook fallout. the first results as a public company released after the bell today and everybody believe me everybody's watching. the stock is still a loser down 22% from its ipo price. but that's not as bad as zynga's been. kayla tausche has more but first julia boorstin in los angeles with the look at the company's numbers later today. julia? >> reporter: there's huge attention on facebook's results, especially after zynga's big earnings miss. wall street projects revenue $1.146 billion and earnings of 12 cents per share but some other numbers may be equally important including facebook's advertising growth and whether it continues to slow. facebook says about a click through rates and pricing will also be key. what everyone wants to know is how facebook is handling mobile. how mu how many users access through mobile. and look for an update on active use earls. of course, tyler, analysts are very eager for guidance. does facebook expect to return to accelerating revenue growth? recent product laun

they're looking at facebook as a company, but the valuation that's been placed on facebook thus far. at $100 billion and now it's around $65 billion, $70 billion. >> but the users, when you look at facebook, they are still going up. they're on the rise. does that not translate into dollars and into profit? >> it does translate into profit. the problem is, they're having to spent more to get those people and they're having to spend more, really, to get more out of them. the profit margins are shrinking. it's costing a lot more for them to get people on facebook. there are questions around facebook fatigue. we all feel it to some extent. and so people are just wondering, is this the high growth stock that people thought it was going to be? you know, as we talked about people really thought this was the banner ipo of 2012. and in some ways, this was a sign that tech was back. this was the golden boy of the tech world and the stock world. >> yeah. meanwhile, some now calling for a new ceo. is this the beginning of the end for zuckerberg or is it too early? >> it seems pretty premature. w

it is a new environment that facebook has never played in .. >> if facebook mrs.expectations than analysts predict the stock will be hit hard and the welcome mat for mark zuckerberg may be pulled from under him. their numbers are still down 39%, which experts say will affect the facebook numbers today. but we really will not know anything until that closing bell. >> we're hearing that mark zuckerberg will be making some sort of an appearance after the announcement. what can we expect from him? >> at most we can expect a brief comment. he is not known for dealing with wall street types so most likely the c o zero or c f zero will be doing most of the talking. >> thank you. >> you may notice twitter suffered its second worldwide outage in less than two months today. millions of twitter users across the globe were unable to send their 140 character messages. the severance based company gave no reason for the outage. the website is expected to see a huge spike on friday when the olympic games get under way in london. >> it was not an ideal time for system failure. a m

for now....facebook is finding new value in friends. jeff facebook... says... as...ntt.. of... its ... 900--million users... could be fake...///. they... say... spammers roduce... false profiles.../ then... trick users ... to.. "befriend"... them. 3 a driver heads the wrong way down a busy highway... how other drivers reacted... / and the urprising way.. it came to an end. a fast food employee with their feet in the lettuce .... the restaurant where this photo was taken,.../ and the company's response. scary moments ...for drivers ...on a mississippi highway.../. this... video... was shot by a driver... on... highway 49.../. on... the... other side of the median ... you can see... a car going the wrong way ... into... oncoming traffic../.. he... picks up speed... forcing other cars... to veer off the road... untill finally, ... colliding... with a ford s-u-v... right... in his path..../ the... driver of the s-u-v... and... a... young passenger... walked away ...from the crash..../ the... wrong way driver... was taken to the hospital... with a broken shoulder. .../ he

and for a dollar off coupon, visit us on facebook. 3q6? >>> good friday morning, thanks for joining us, i'm megan pringle it's time for your abc 2 news to go. let's start with meteorologist mike masco and a check on the weather because it's going to be a scorcher. >> not only today but tomorrow unfortunately. here's a live shouted, it's a beautiful shot -- shot. it's a beautiful shot looking toward the bridge but it's deceiving. excessive heat warnings over the eastern short. it's 78 in town, we're on our way for one hundred degrees along the 4:00 hour. there could be storms in the mix for saturday and sunday. here's a check on your abc 2 news time saver traffic, remember how we were talking about that ladder earlier, it's been cleared but some delays still exist, 95 northbound near 695 on the north side of the city, again, maybe a little slow going because of that earlier debris in the roadways, outside we go, 695: no congestion just yet but things could change and we'll let you know if it does change. we'll have another traffic and weath

of facebook. $22.60 down. and take a look at the others. they're all trading lower this morning. >> when you look at the performance of zynga, groupon and facebook in particular, those who said it's a social media bubble. was it a bubble? >> i think that it's not a bubble. i think that it's something that they have to figure out how to make money with. and i think that charles sandberg said something interesting on the call saying it's a new kind of marketing. i don't think they know what the third medium is. they're going to do a lot of missionary selling locally. it's going to cost a fortune to boost their sales. >>> coming up next, get ready for cramer's mad dash. let's take a look at future this is morning. we are looking at a higher one although we are awaiting anxiously how facebook will open. stay tuned. ♪ [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an

he also squash rumors that facebook may be interested in building a facebook telephone. he has reason to be concerned, since yesterday he has lost about $2 billion on paper as a result of these losses today. >> the european central banks sparked a big rally on wall street today. the ec be president vowed to protect the euro which sent stocks year's soaring. the dow jumped 212 points. nasdaq saw a 39 point gain and the s&p 500 was up 22 points. >> their work twitter outages worldwide for the second time in two months. at first many thought it had something to do with the crush of tweets were the london olympics but the olympics had nothing to do with it. twitter says that failures at data centers were to blame >> iraq into a station at a bay area company forces a recall. what you need to know about the items sold online. >> an operation, almost caused a melee at a bay area parking lot. some californians may qualify for a refund >> sun protection in the,,,,,,,, >> the san francisco urban and natural food company is recalling several products because of a rat infestation at

everyone talks about facebook. no one knows whether facebook has been doing well or not.s made a big push, put tibco and whether facebook and tibco are doing things together that companies are liking for marketing. >> well, the way that my customers are increasingly looking at their business, jim -- and by the way, i look at my own basketball team in the same way. >> why did you give away that guy to the sixers last night? never mind, off topic. anyway. >> we think that's a good deal. but it's really a social network. so whether you're a sports team, a bank, a retailer, an airline, a sports retailer, you have a social network. and what we do is we help you capture that network. we help you expand it, engage it, and monetize it. so we know who you are. we know what your household looks like. we know what you like. we have loyalty programs. we know what your household looks like, and we know what you might be about to buy or not buy. and now on the back end we also know what we have and what we would like to sell. so literally, we can pick up every tweet and say oh, you jus

>> in terms of facebook, when you think about facebook. >> no, again, i think you know, facebook has an unbelievable franchise, in terms of their, the talent there, the software engineers, what they've built, and so you know, they've said explicitly that they take a long-term view in terms of what they're trying to build, and i think a lot, most of the startups or all of the startups that we talk to or that we know really rely on them as a long-term franchise, and view them the same way as great software engineers building a great software platform for the startups. >> david, we're going to leave it there. thank you for joining us this morning, from palo alto. >> thanks for having me. >>> note to self, next time you have to sneeze, go ahead and just sneeze, don't try to stop it. we'll have more from guest host peter fisher on the swaition in europe and the united states and the top of the hour the special interview with the man who wanted to refuse t.a.r.p., dick kovacevich will join us to defend the big bank model. we built the first railway, the first trade route to the west, the g