ipo taking place.his is bloomberg. ♪ upk: snap has begun trading, tick by tic, up to $24.74, selling 200 billion shares in at ipo, up already by 50%. vonnie: holding on to gains, though we are just a few minutes in. interview tom to farley as well. time for our latest bloomberg business flash, a look at the biggest story in business right now. the fewest number of americans in years filed first-time claims for unemployment benefits. withss claims fell declines the biggest this year. we will get the february jobs report next week. books were not a big item during the holiday. book sales fell more than 8% according to barnes and noble. at its worst quarter since 2005 and was worse than analysts expected. latest bloomberg business flash. that jobs report not on the first friday of this month because it needs to include month previous. let's take a look at where european markets are trading as we head toward the close. little changed for the stoxx 600, which earlier rose once again to its highest since dec

the story of the morning remains the ipo of snap. biggest tech ipo on the u.s. exchange in almost three years. pricing well above the range. and obviously, it's going to open above that, as we are now looking at potential market caps in the range of $33, $34 billion. sara eisen, david faber and myself at post 9 all morning long. joining us at the desk, roger mcnamee, and eric capoue. exciting day. >> great day! >> let's get your take on what appears to be pretty bullish action in the stock. what do you think people are responding to? >> the stock was way oversubscribed yesterday at the ipo. i think there's a lot of excitement about snap. i think snap is fun, clearly has a very engaged audience, and there's a new player that we now have a duopoly, facebook, google. i think they'll continue to do well, but now there's a new player on the scene. >> does it bust that open, roger? >> i think it's -- let's face it, the market has done way better than institutional investors this year. hedge funds are lagging. mutual funds are lagging. they need big ipos to get back in

every ipo has a degree of retail allotment. it's usually about 5% of the ipo. and those are the retail people that get it through the major underwriters. who are running in the books on this thing and they get at the ipo price. we should point out that this ipo did not allot 5% to the retailer. it is a 70% decrease from the normal allotment. that means that most of the stock on this thing was given to people that are not in a cell their long-term holders and it basically creates a scarcity value in the stock. you do know that when this thing opens based on where the supply is this thing is gonna pop significantly. i don't know exactly where his client bought at they did not buy at 17. where did your clients by. at 17 to get the preopening. unless they got a broker you're not getting that i'm missing something here. in order to get that 17 if to be a preferred client of one of the underwriters of this thing. most brokers have a thousand shares if they were lucky because it was not widely distributed. the bottom line is this. they created value through scarcity.

the second-largest technology ipo in u.s. history behind facebook back to 2012, snap going public is $17 a share. valuation of $24 billion. a few things that have been somewhat controversial as the agent of ours the voting power the founders now have. evan spiegel 26 years old. bobby murphy 28 years old started this in 2011. they were stanford roommate spirit they will now have basically complete control of this company. for those of us to let it go of snap, you will not have any voting power. a lot of questions leading up to the ipo. the fact that the headquarters space no-space out. standing in front of two main buildings in venice beach. snapshot has nearly 30 buildings right now and of course a lot of protesters have been out here over the last several days because they feel a technology company like snap has no business being in venice beach. maybe it's a bit of a disturbance to the community. you say think you were very angry that snap is here. why are you angry snap is in venice beach? >> the main concern is the intera

i looked at other ipos that had been participated in, technology ipos, this is third largest technology on record after alibaba and facebook. remember when facebook went public, melissa. they only gained .61 percent on the day. if you compare facebook's first day to snapchat's first day, snap, the ticker, snap, looks like snap is successful for now. twitter had a big day when they first debuted back in november 2013, up 72% on the day. you mentioned, nice i will leave you with this, throw the numbers out there, evan spiegel worth about $4.49 billion after today. bobby murphy, his 2-year-old cofounder, $3 billion. they would sell 11 million shares each. 2$2 million, they gained. as i make more friend out here in venice beach. 272 million. melissa: cheryl, thank you for that. david: those friends come with strings. snapchat is stealing the spotlight. a lot of folks don't know what the app does. take a look. >> my kids know how to use it but i don't. >> i never heard of it. i'm not into telephones and computers. >> it is a an app. i have no idea what it is. melissa: i don't use telephones.

how do we use this snap ipo highly anticipated biggest tech ipo since alibaba as a marker for where were in this rally? >> well, look, in theory this should be a phenomenally hot market. but the market has been coming off lows since the middle of last summer. i did the first ipo story getting better in june of last year, sara. and you talked often about it as well. and yet it hasn't really materialized. we had only five ipos in the month of february. that's a terrible number. i am hopeful that if this is successful and i don't mean just necessarily today but in the next week price holds up and does well, there's more than 100 unicorns out there very high value companies that are out there that may finally take the bait and move forward. this is an enormous backlog. i think april could be a phenomenally great month if snap holds up pretty well. so there's a lot at stake here. just the idea markets at new highs, we had that back several months ago. it was necessary but not entirely sufficient for things to happen. i think we need a really successful ipo, maybe this one can be the one her

caroline: looking at the ipo scoreboard, facebook is up triple its initial ipo value.er a year it was down 31%. opened up its debut at 78%, then it was down 10%, now it is down 65%. it is worth remembering whatever happens on the first date is not always remain. talk us through the managing of whereations and indeed the roadshow was not all smooth, there were some bumps they had 2-iron server. -- 2-iron over. guest: this is a company that is trying hard to not set up those comparisons to the companies you just compared it to, facebook and twitter. this is a company that does not want to be judged on its user growth, but it is going to be judged on its user growth. that is a metric that slowed in the fourth quarter. if you do not have the users, you cannot make the money of the ads. snap's argument is that the user engagement is so immersive and so frequent that it does not matter the quantity so much as the quality. caroline: 18 times being logged into the affidavit. those are amazing statistics. we were down on the new york stock exchange. it was a frenzy. goldman sac

what is the next tech ipo going to be? cory: there is a lot of talk about a dropbox ipo.uggled in the public market. maybe airbnb or pinterest. the ability to raise money in the private market has been so great for these companies that one wonders if they need to do that at all, or stay private? by uber getting out of their massive losses, they may start to look at the public markets, to could do. too.blic markets, a lot of these late rounds of , with a ratchet -- come with a -- vonnie: bloomberg's cory johnson in san francisco as we await snap's first-rate. stay tuned for an interview with tom farley. if can follow all of the latest on thements with snap bloomberg. the senate has confirmed ben carson, the retired neurosurgeon to head donald trump's housing and urban development department. next advances is looking to rick perry. this is bloomberg. ♪ ♪ is bloomberg you are watching, and i'm vonnie quinn. mark: i'm mark barton. here is what we are following. inflation rose to the highest level since generate when he 13 -- since january 2013 thanks to oil prices. maker, top

the question for this ipo is for investors overall, this ipo good for main street or wall street? both or neither? we will see where the stock goes. back to you. >> investors will be focusing on a new speech from the fed chair janet yellen. she is expected to join the chorus of other fed officials saying an interest rate hike is on the table, the next policy meeting is in less than two weeks. other fed officials have suggested the central bank is close to its mandate for full employment and 2% inflation signaling a march rate hike is in the cards. the latest numbers from the cme just recently in the 30% range, now it is a 77.5% likelihood that we will get a rate hike in march. warn: global market action overnight, the shanghai composite lower by 0.3%, the nikkei down by 1/2%, hang seng of hong kong down by 3 quarters of 1% and the cosby in south korea down 1.1%. south korean shares dropped to a two week low on earlier reports the china has ordered operators to stop selling tours to that country. nicole: let's see how europe is faring. all down arrows, right now we see the london f

the average ipo from last year is up 36% since pricing. average ipo this europe 14%.at returns than we think the ipo market is as good as it gets right now. volatility low, markets a year for investors looking for growth companies. it's a good time to look at doing an ipo. >> the ticker symbol. any other names you're watching for the ipo market? the >> there's been a lot of private equity backed ipos. another one coming this week. on the tech side, there's companies that you probably are brand names. do a fast come out were involved with. and then a lot more confidentially on file. the ipo backlog is really hard to judge because you don't know other companies on file confidentially. jmp wherein the ipo market. we talked to a lot of these companies. we see companies picking underwriters ready to file. i have a sense that there is a lot bigger pipeline. >> the market near record highs. let's go back to snap for a second. there seems to be a lot of concern about the subscriber base falling down. would your argument be that snap users are so engaged in lots of the cares a

now almost triple its ipo value.tter, down 10%, now down 65%. it is worth remembering that what happens on the first day of an ipo is not always remain. talk us through the managing expectations. the roadshow was not all smooth. there were some bumps 2-iron over. -- bumps to iron over. many questioning the user growth. >> absolutely. this is a company trying as hard as it can to not set up those comparisons to facebook and twitter. this is a company that does not want to be judged on its user growth, but it will be judged on its user growth. that is a metric that slowed in the fourth quarter. if you don't have the users, you can't make the money off the ads, but the argument is the user engagement on its app is so immersive and so frequent, it kind of does not matter the quantity as much as the quality. >> they do have some pretty amazing statistics. goldman sachs had their role cut out for them. they were stabilization for the entire trade, and they took their time. >> they did. that is kind of what they are known f

it was up about 30% from its ipo price of $17, it is down about 24% from the post ipo high.e stock is moving around a lot and there's a lot of situation as far as the stock is concerned that are very similar to the options that were listed today. you know, one of the reasons i think you want to be very careful when trading options of newly listed hot stocks like snapchat, one, they will be illiquid, it will be hard as far as pricing and trading them. the other one is because of that you're not going to have great pricing, you know, the bid ask will be pretty wide. because of that you're also going to have -- and there's a bunch of other technical factors. option prices will start high. for market makers to sell options to you they have to hedge it, they have to take other things into consideration here. so for the time being option prices will be high and it will be hard to make money just being long options. any time we recommend or talk about trades that are long premium, you have to get a lot of things right just to make money or just to break even. you have to get the di

they are looking at this snap ipo, a big company, really the biggest social media ipo since twitter,nd saying if they can do it, that shows there is an appetite on the market for these kinds of deals and for highly valued stocks. >> alex, you are talking to sources already. what are they saying? are they lining up who they should be talking to next? >> basically yes. to sarah's point, the average company is staying private for nine years. snap is younger than that. that used to be the ammo for companies going public. they would go public when they were less mature. that hasn't been the case these days. snap is going against the grain by going out as early as it was, and there has been these arguments in the past year where the buy side in equity markets has been risk off. they want to see more profitability, more stability. but snap is coming out with an unprofitable company whose business model is only probably about six quarters old, and the deal itself did well. there are still question marks about the long-term returns, where the stock goes, how the company fares, but this is a b

more generally, the aramco ipo is not only -- is not the typical ipo.e in how saudi arabia is run. how state assets are used. this will bring about change in the government's, not only of aramco, but of the wider saudi arabia involvement with the institutions. government saudi must be watching very nervously at those oil prices, and hoping that those inventories begin to clear so that oil prices can move somewhat higher. we heard from them the last 24 hours, they said eight to nine months to clear out. how convinced are you at the efforts to rebalance the efforts and where d.c. price for it -- prices headed? theo: the rebalancing of markets through production cuts is always a difficult pass, because there are people and countries that try to cheat on their production. the cutsu can say that are effective, it takes a long time to set up a supervisory scheme, or a compliance mechanism. -- the the record is russians do not seem to be too eager to keep their words. it will take another round probably of negotiation. they will have to assess the experience o

that hold in terms of large ipos, particularly technology ipos?e looking for dropbox, spotify, are you looking for tech ipos? year ago, we had zero ipos in the first quarter of 2016. this is our 13th this year in the first quarter, and we have march and april. it is not the big tech names, which is the premise of your question. those big tech names are watching closely what happens today, and it can alter plans, pull ipos forward or backwards. i take comfort that this ipo was very smooth and they got what many describe as a health evaluation. >> do feel 2017 will be the year of yet more companies coming public? yes, absolutely. things can change. in august 2015, a very volatile day and the ipo market shot. i am not prognosticating. i'm saying the ipo's we are planning plus those in process is very high. youtube is going prime time. it announced a new service called youtube tv that will deliver tv channels to paying customers for $35 a month starting this spring. lucas shaw spoke to ceo of youtube at an event in los angeles. he started by asking he

no one is complaining about the ipo for investors. >> it has almost tripled its ipo value, facebook down1% after one year. twitter, down 10%, now down 65%. talk us through the managing of expectation. the roadshow was not all smooth. many questioning the user growth. >> absolutely. this is a company trying as hard as it can to not set up those comparisons to facebook and twitter. this is a company that does not want to be judged on its user growth, but it will be judged on its user growth, a metric that slowed in the fourth quarter, and if you don't have the users, you can't make the money off the ads, but the argument is the user engagement on its app is so immersive and so frequent, it matter as much quantity as the quality. >> that is a pretty amazing statistic. goldman sachs had their role cut out for them. they were stabilization for the entire trade, and they took their time. >> they did. they did take their time. what i can tell you now is you saw bobby and evan ring the bell. i disappeared, chasing them down because they went to goldman sachs to watch the first trade happen. they

they say they do intend to ipo part of their businesses.be a game changer for saud a -- saudi. clearly a lot of excitement about potential deals coming to market. i have to bring in the pessimism. as talk about what could not that optimism. this chart is the tadawul versus oil prices. end, they are starting to move in think while oil was collapsing over the past week or so. oil has since recovered it what could not be optimism here? we cannot forget we are in the middle east. we cannot forget it is all about oil at the end of the day. especially for saudi, which is the biggest stock market here in the region. if we do not see clarity in hows of the price of oil, much of a recovery we can see in the domestic economy this year? what exactly companies are going to consider, in terms of spending and capex along 2017, than the ipo activity when not be as intense as a lot of people are seeing at this moment. considering oil between 50 and 60. this is the scenario we heard from, from specialist of andstments and -- investors bankers. it would be o

an offensivees on as the ceo teases an ipo, ahead. first, to our lead. intel is spending $15 billion for a foothold in the self driving car market. it's buying mobileye, which makes chips for cameras and driver assistance features. in the second largest acquisition ever for intel and the largest ever for an israeli company, shares in mobileye surged on the news. large caught up with the intel ceo earlier and asked him why he is shelling out so much money for self driving car technology. >> we think combining intel in mobileye allows us to have a singular unit, but if you take a look at where driverless driving 2021ing, we're working on models. you have to make a model and build your platform today in order to be there in 2021 in the model start hitting the road. cory: what has intel's approach been, and how might it change with mobileye? >> we're already in a large number of autonomous vehicles out there today. what this does is brings the best of both ends of the computing spectrum for driving together. think about it this way. the car will have two bra

of large ipos, particularly technology ipos?re looking towards two big, private companies whether it is dropbox, spotify, are you looking for tech ipos? if you go back a year ago, we had zero ipos at all in the first quarter of 2016. this is our 13th this year in the first quarter and we have a whole bunch more in march and april. it is not the big tech names, which is the premise of your question. i will tell you, i know firsthand those big tech names are watching closely what happens today and it can alter plans, pull ipos forward or backwards. a business who runs that benefits from ipos, i take comfort that this ipo was very smooth and it got what many describe as a healthy valuation. >> do feel 2017 will be the year of yet more companies coming public? >> yes, absolutely. listen, things and change. in august 2015, a very volatile day and the ipo market shot. i am not prognosticating. i am just saying the number of ipo's we have planning a particular date plus those that are in process is very high. >> youtube is going prime

could that you lay an ipo? -- delay an ipo? guest: it is a good thing to get the debt down. a policy point of view to have that separation between the bank and government. all those things are aligned and that is a fracture point in terms of the politics. they would have an impact if someone was in place to make a decision. manus: your impairment loans are coming down from 13.1 billion. could that trajectory continue for you? what is achievable in terms of impairments and seeing those bad loans go down? from: when we have come almost 30 billion down to 9 billion. a 7% reduction. we have a good machine built at this stage, with 1500 people who work through the solutions on a daily basis. we do have a lot of solutions delivered every week with our customers. our target is to get low the european norm at this stage. betweenill provided so ongoing restructuring and looking at any other option in terms of that 5 billion net, we will take -- make sure this is addressed. will take any option. there are suggestions at the bank might want to selloff impaired loans, is that something

here to talk about the ipo maet.st of allthe snap ipo -- a lot of excitement, the big tech ipo we have been waiting for, came out of the gate strongly, and shortly after it began pulling back. down about 16% after hitting a high after his ipo. what does snack tell us about the ipo market, or is that a specific situation? jackie: i think big brand names, exciting unicorns, they are great for the market. they encourage tech companies and other companies who are interested in listing to get ready. the momentum has been great. the markets have been moving, and there is a lot of global macro economic issues weighing in. don't look at movements in the stock price. we don't like to look at stock price and first-day pops as any sign of the success. cory: to that, snap is unique and not unique in a lot of ways. it is a consumer facing technology business. 80% of technology is enterprise technology, but it is a consumer facing business that has a lot of consumer interest. it is a massive money-losing company with massive gross

if you look at the average ipo up 36%. so far the average ipo is up 14%. great performance by almost every deal that has come public. good companies come in public. the markets overall are up. volatility is very low. it's a historic low. you really got all the ingredients for what normally would be a much more robust ipo market. beenine: we have just showing charts of how 2016 was slower than 2015 fisher, but still tech was leading the way. i want to ask about the sweet spot. the ones we are talking about are in the $100 million range, not $3 billion that we saw come from snap. are we going to see big ones like cloudera start to come out? >> i would say why not? exactly what you say, there is a supply problem, not demand. the other point i agree with is that the market and economy has been very strong the past seven or eight years, and it is hard to say how long it is going to last. if i were the head of a strong -- small, young company, i would wonder how long the window would be opening. caroline: that is fascinating, we heard yesterday from the airbnb c

selina: let's get more on the snap ipo and rudder tech ipo landscape.ning us from new york is alex barinka. great package. you outlined a lot of investor concerns. if you look at the current numbers, snap's price sales ratio is almost double facebook. on top of that they don't have profitability, it is a new business model, and investors have no voting power. don't you think this is a little too lofty? reporter: this is one of the things that investors are talking about. but when i think about this, i'm starting to think about it in two separate groups. you have people who will want to buy into this deal because they want to get into the stock and ride what is typical in the share price immediately after the ipo. they will probably be a little less valuation sensitive than the long-term investors, which is the other group of people who would consider this deal. for them, you look at the high-end, about 19.7 times forward revenue for the next 12 months. that is double facebook, and more than what facebook went public at and around 19.4. twitter went publ

on a per capita ipo's out ofber of china.

is 2017 going to be a good year for ipos? so much excitement built up around the snap ipo.ext 2016 was not a great year for ipos. you see a bunch of public for tech not thirsty companies. are some companies that could go public in 2017. i don't know about dropbox, but go public in 2017. all these companies that are enabling enterprise to move to growthud, there is a secular story around that. public investors want to have access to this growth. they've not had that in 2015-2016, so they are thirsty for a new ipo. caroline: how frustrating is it airbnb canies like keep raising cash in the private market, since they will just delay as much as they can? frustratingewhat it for the investors and many of the employees who are locked in the shares that many of them cannot offload. they need to put money down on a house or to get out of the have the amount of compensation and airbnb, but uber have shown stubbornness to stay private. and the ability to keep raising and raising money. you mentioned snap, it is an interesting example of a company , obviously there was the usual rocky

bulls, what it means is that we are moving closer to the ipo.he thinking is that saudi does not want to ipo its most valuable asset in a $40 a barrel environment. it once to make sure the oil high as possible moving into the ipo in 2018. in terms of what that means for policy, we will see price maximization emphasized over mark -- over market share maximization. end ofc meeting at the may, i expect saudi to push for an extension of the cuts we have seen. the way to look at it from the bearish perspective is that the proceeds that come from the ipo which could be $50 billion-$100 billion could be important in terms of plugging saudi's finances if we stay in a lower than longer world. saudi is running a deficit. to keep gdp below 30%. if oil prices remain where they are, the proceeds from the ipo will be important in ensuring that saudi heads its financial markets. -- it is look at this reminiscent of what saudi is late 1990's, early 2000's to what beijing is doing. gearing up for these massive ipos. the investment banks were jostling for position

-- ipo's within social media.ng facebook, twitter, you look at a pattern, all of them traded lower in the year following the initial public offering, and then there is a mixed performance if you look at how they have done up until now. facebook has done the best by far, of 250% from its ipo. twitter and fitbit both down, alibaba up 10%. we have a lot of debate today about which category snap might fall into. scarlet: good stuff. oliver: let's get investor's take on that ipo. company become another twitter, struggling to grow visitors and advertising revenue? joining us from our san francisco bureau is a managing director and general catalyst and investor in snap. thank you for joining us great a big day for your team there, what do you make of how quickly these prices are moving up on the shares? >> thinks for having me. this is an exciting day for us. snap is an important company for our first ipo since we expanded the firm to the west coast. i think the successful start you are seeing is a reflection of two thin

caroline: they spoke of potentially an ipo halfway through the two-year process. ipo next year?i think they seem ready. i normally don't feel this way about tech ipo's. i think snapchat went public to early. i think when facebook went public, they went public to early. airbnb is a robust business. they are profitable. they are generating billions of dollars of revenue. i think the business model is well set. they are already the world's largest provider by many measures of short-term accommodation, 3 million hosts compared to marriott with 1.1 million moves. they are in pretty good shape. they are a healthy business is one of the leaders in their industry. i see no reason why an ipo next year is not a possibility. caroline: we have more to cover with you. stay with us live from new york. uber is taking extra measures to prevent drivers from forming unions. we will discuss the latest battle next. this is bloomberg. ♪ caroline: uber has always discouraged drivers from forming unions. in seattle, it is taking extra measures. it is running advertisements against unionization, hostin

. >> missed out on the snap ipo?e have a way to buy snap at the ipo price at no cost. >> surely you can't be serious. >> we are serious and don't call us surely. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading

what were you thinking about in the run-up to the ipo?ow important was profitability to show investors you can get there one day? >> the key is to have a balance. it is not growth at all cost or profitability at all cost. you want to grow in a sustainable way. we have been reigning in the cost but also growing extremely well, growing 71% last year. keeping the growth up but also being very cost cautious at the same time. >> that cost consciousness has descended on silicon valley lately. what was the catalyst for you to say we need to take a good look at where we are spending money? was it getting ipo ready? were some of your backers advising you on these things? where did the real decision-making come in? >> as you get bigger and build a larger company, with the growth rates, you want to show and demonstrate you can build a company that has a sustainable business model. we knew at that point we needed to start showing that. >> when i look at where your revenue is coming from, a lot of it is from the recurring revenue streams you talked ab

ipos last year were at eight-year low. ipos started shrinking. we had only 105 ipos last year.seen that low since 2009 after the collapse. how do you get in? how do you play this thing? yeah, you will feel iced out. there are other companies benefiting. amazon web services signed a contract with snap. you have to store the images up in the cloud. amazon and google web service ares in play. stuart: this is super high-tech a product that appeals to very, very young people. maria: hot new thing. people want in. stuart: you look back at ipos in the past. look what hands to microsoft way back then. >> it created all the millionaires. stuart: that is why you have snap and off you go. the spectacle angle, glasses from snapchat. our own adam shapiro is in times square and will tell us what is so great about them. go. reporter: not a lot. the problem with these, you press a button here. you see how it tells you that i'm recording right now. it only records for 10 seconds. if you press button it will record again in 10 second snaps up to 30 sections and download to your phone. let me rec

it did not get as much coverage as the ipo by snap.think it is the biggest deal intel has done. it is a statement about what some of the biggest players think is the future of self-driving vehicles, which is huge. i think we all continue to be amazed this industry is coming forward as fast as it is. your hero was skeptical of this deal on one of your programs i saw. i think it is probably smart for intel to be making a big bet on something fundamentally new. i would look at the way intel is thinking is not just about self-driving cars. they are making a big bet on the internet of things and connected technology generally across the economy because they see if they get really good technology in that set of opportunities, that could be a p.c.-scale business. that is what they desperately need, another p.c.-scale since they missed the smartphone. i am not shocked. i think it is a good deal. caroline: tom, this is another player like waymo, google, uber getting into autonomous vehicles. >> $70 billion is the number at the forefront of inte

maria: having said that, there aren't a lot of ipos this year. we are in a quiet period of more deals this month. >> this one is so strong. especially a tech ipo. last year was the slowest year since 2009. maria: would you buy a comic kevin kelley? i wouldn't. there's a lot of concerns that came out of this roadshow. they are actually locking up whose locking up who's scanning the actual shares and going through investment firms and then you got to hold these about a year. the main concern is they think they are a camera company. all your revenue is derived through advertising for one key demographic. they are competing against google and facebook for the ad spend when those two firms had the best data and analytics that advertisers are going to spend. it takes a week for an advertiser to go to the platform as well as using some different type of matcher x. they also want advertisers to shoot a vertical. a lot of concerns a lot of concerns and you have a company say they are camera company when really they are social media company against google

while there may be demand for the hot new thing, biggest tech ipo since alibaba, first tech ipo of 2017the question is longer term is this a good inve investment? still not a profitable company, it's got a lot of competition, especially with facebook and instagram. >> and a writeup suggesting that 25%, roughly, of the share holding will be locked in for a year. that's not that high a percentage. still leaves, of course, a huge free float and will be fascinating at 9:30. i can't wait to see how it opens. when the bell goes, a few more exciting things. >> nothing like an ipo on the floor of the new york stock exchange. >> i was just going to point out, these are nonvoting shares. these share holders don't get a vote when it comes to acquisitions, executive compensation, a slew of things that also could -- >> mr. spiegel and company keeping tight control on management but also becoming very rich today. 4.3 billion his holdings. >> and just 26. >> i couldn't believe that, re-reading that on the way in. just painful to look at. >> six years older than mark zuckerberg. >> congratulations, he

gearing up for method ipos. remember all investment banks were jumping for position for a piece of that deal. what is the next that. -- the next structural adjustment? had adjustments that brought in line with global standards. is anything else we should be excepting -- expecting saudi to do when it comes to aramco? reporter: this is about the 2030 vision. when you have a state owned enterprise that has a share price to worry about, what it does is drive efficiency. we see that with the chinese and russian oil companies. the listing of saudi aramco is going to drive productivity improvement which should be beneficial to society. in terms of what you're going to watch in the next steps, clearly we will have to wait until the end of the year and early next year before we see the financial results for 2017. that is going to be critical for the evaluation of the come the -- company. the next thing is the reserve audit. a 60 since on over to billion barrels of oil reserves. billion barrels of oil reserves. the disclo

david: you specialize in ipo's.his in perspective in terms of ipo's trading and going out at this much of a premium to the original range. is that a typical, typical? alex: for the big companies it is terror -- fairly typical but this is a big gap. times, went out at 13 and this was before reality set home for twitter and the stock fell off. this big of a gap for a company that is consumer tech that a lot of people know, and is coming in with a very high private valuation that is close to the $20 billion market value at this ipo is typical but snapped is taking it to another level because of it ties, and because investors know what this is. lewis: how do snap -- alix: how does snap wind up making money? adam: is a messaging platform with different filters but how they make money is they have media companies posting different content from the sort of the now to the more serious -- the now -- banal to the more serious. they are trying to reach the younger audiences who watch these things. they have advertising and the

i would expect the stock would go up somewhat after the ipo.aroline: you have so much experience in this, you helped twitter come to the market. daily active users is something that has been striking the market in particular. there has been a slowdown in snapchat's daily user growth, whereas that was not the case with facebook or twitter. do you think that is a cause of ?oncern guest: i think that is the biggest concern facing the company right now. if you look at them compared to facebook and twitter at the same point, snapchat is growing half as fast as facebook and twitter were on a quarter on quarter basis. as you track to the trajectories of facebook and twitter since their public offerings, it is really a tale of two cities. facebook has continued to grow at a really rapid clip while twitter has slowed down. it's about couple of years for twitter to prove that their mobile tragedy was a right one. daily active users, they might be far less than instagram, but they are addicted. alex: they are, and that is kind of the bet for snap. you hea

oliver:er, tech ipo -- still ahead, we look at tech ipo's.is is bloomberg. ♪ --ver: "bloomberg markets this is "bloomberg markets." scarlet: we're focusing on goose begananada trading today. the timing is incredible. we will discuss it later on. we had this big snowstorm in new york city. incredible timing. and equities are near record highs. what better time to come up with a new listing? oliver: shares opened at $18. ipo price a little bit under $13. here.s the first day goldman and morgan stanley, the whole list. let's look at the bloomberg --minal and a valuation's and evaluations. we are to go to radio now. l: coming up, we talk to the executive vice president of global listing services at the nasdaq. interesting year. we have all been excited about the snap ipo. we want to thank everybody joining us through bloomberg tv. the executive vice president of global listing services is joining us from the nasdaq market site in new york. nelson, nice to have you here on bloomberg. talk about the market environment for new listings, especially a

range and the returns have been positive, both from the ipo and also for post ipo investors.ink that there still is a lot of price sensitivity in the market and snap may be an opening for other unicorns and there are some i can talk about, but i would say there are many other ipos that are being done at fairly reasonable levels. >> drop some names. >> it's important to note the next unicorn on the calendar called mule soft. it's an enterprise software company. it was $1.5 billion. it's going to go try to go public at $1.8 billion. high growth, but not making money. investors are going to take a good look at this and we'll see if that continues the strong trend of what has been the concern investors have had about how high the valuations have been in the private market and the public investors haven't been willing to look at those. >> are people or at least retail giving a premium to names that have a consumer interface like a snap or uber or airbnb. >> that certainly is the case quite frequently. i would mention another important ipo on the calendar. canada goose is going to

it struggled to hold its ipo price.aroline: alex, 10 times what it is worth is what is being reported. is there enough being left on the table? alex: you have to remember that facebook had the trading day glitch as well. the oversubscription, i will cap the at-bat by saying that investors -- everyone is fighting for allocation for these buzzy companies. it seems like they don't want it to fly off the charts. it. like this idea that you have left a money off the table. we will be watching tomorrow to see what happens and see if there is as much demand as there buzz aroundd the -- the listing. caroline: most of the orders came in at the $17, $18 range. david kirkpatrick, you have been telling me this is a nosebleed valuation. david: i still think it is, but on the other hand there is nosebleed worth of demand. a huge amount of people want to get in on the hot new thing, who see this as the first opportunity of its time in a number of years, and i suspect a lot of them are out there in the marketplace after the ipo as well

>> well, i certainly hope that a successful ipo is a harbinger of further successful ipos. know, you saw a decline in ipo activity last year because of market volatility, so maybe we'll see a little bit more activity for 2017. for the tech sector as a whole, i think that it shows that people are still optimistic about the outlook. obviously, you can't extrapolate what's going on with one stock for the rest of the sector, especially such a diverse sector. we still tend to favor those parts of the tech sector that are more geared to businesses and not necessarily so much towards the consumer. we think that if you get some movement on the tax front, repatriation, tax holiday, or changes to those rules, you could see some significant investment in say the internet of things, in cloud computing and the such. it's kind of those areas where businesses are more likely to be spending their capital expenditure dollars. >> glen, snap is now valuationwise worth a little bit more than electronic arts, a little less than ebay. here's my concern about the platform, and i'm wondering your

and snap's ipo last week has silicon valley torn.p bears cannot see how this company famous for rainbow vomiting tongues could possibly be worth $34 billion. but eric hippo is a believer. while this silicon valley insider with a proven track record saying snap is an easy decision. countdown cong right back ♪ >> did you see it? so dramatic. hugh jackman's "logan" clawing its way to the top of the box office. the third installment of the wolverine movie franchise raking in over $85 million in the u.s. what does that make it? the fourth rated biggest "r" rating opening ever at home. the best r-rated debut internationally in history. $159 million made overseas. "logan" made by twenty-first century fox, a unit of the twenty-first century fox, parent of fox business. now thursday, investors were shredding and clawing over each other to get to the snap ipo. it was 44% higher on the first day. it tacked on another bunch the next day. in the final few minutes of trade i asked smart tech investor ross gerber, who made a lot of money on things

third ipo returns have been strong. the average ipo is up 26% in the last year. and finally, the number of shares the company floated pretty small, just about 14% of the total shares outstanding. this was a great first day pop but a lot of tech companies have had great first days then they run into trouble within six months or so. item number one. facebook priced at 28.12 but had a terrible time after that. then we had twitter. they priced at 26 in 2013. huge first day. they closed almost $45 but it too was plunging six months later. and we have alibaba. they priced at $6 in 2014. their first day they closed at $93 but it too was dropping six months later and eventually went below it's ipo price before recovering. we got that six month cliff. melissa i said this before, the ipo market is going to open. i'm looking for easter, the calendar starting to look a bit crowded. bankers are getting called. i know i did this with you back in december and we had a terrible february, but i think this is finally going to do it. >> all right. we'll hold you to it. thank you. l