final thoughts from julia boorstin and then jon fortt. julia. >> i just have to say i think francis is wrong because i think that we have to look at what mark zuckerberg and sheryl have been doing with the company. zuckerberg said many times he's interested in focusing on growing the company, growing its revenue and its earnings and that's something that he wanted to do without the distraction of the public markets. >> jon fortt, what does this do to other companies or for other companies that may be wanting to come public from the valley et cetera? >> sucks all the air out of the room. nobody wants to come out at the same time as facebook. another thing i'll say as far as the distraction issue facebook should not have done this sooner. they had some major changes in timeline and other things they were rolling out at that time. it's going to be a big distraction for employees, they need to get that stuff done before this whole thing happens. >> sucks the air out of the room. >> that's perfectly well-said. >> great point. thanks all of you.

and julia boorstin. and harry joins us, a portfolio manager. harry, we haven't heard from you yet in the show. how do you greet this news? >> well, it's really interesting. you know, when i was refreshing my numbers for this talk, i was decidedly negative. but after i looked closer at the numbers, i became increasingly optimistic. you know, with 1 billion users, and the potential for 20 billion in revenue, with let's say a 50% at that margin, in 2015, it's only -- only -- ten times -- >> how did you get there, for goodness sake? we think they've made an operating profit of $1.5 billion. how are you getting to where you are? >> well, estimates for 2012 are kind of the $7 billion to $9 billion range. >> revenue profits? >> revenue. so then if we extrapolate forward, three or four years to 2015, assuming, you know, a reasonable growth rate for a company like this, we get to $20 billion in revenue. >> so you would buy this thing at what? >> using a 50% margin, that's 10 times, the price is at $100 billion. for a deep value guy like me, i'm not goin

. >> let's bring in jon fortt and julia boorstin to dive further into these concerns. jon, hasn't google been sharing information already? >> they have, simon. so what's really new about this is, not that much. it formalizes some things they had been doing. it puts all the data in one bucket. google telling people they're doing that. but hey, i think the bigger deal here is the narrative that's being created. people are concerned about this, we've heard about the fdc possibly checking in on whether this violates some terms of that google had agreed to. other google stumbles in the past few months, they had the issue revolving around google plus, facebook not happy about that. even some of google's normal boosters in the blogging community upset about that. they did some things with the chrome blog, promoting that, broke their own search rules. they did some things in kenya, as far as trying to sell the businesses that ran afoul of the rules. there's a sense amongst some people that google is setting the table for growth. so intent on that, that maybe they aren't focusi

julia boorstin is live in l.a. with all the buzz. y, julia. >> reporter: tyler, the buzz about facebook's pending s1 is that ceo mark zuckerberg is trying to file by tomorrow. it's still in the works. i heard why facebook needs to file now. sources tell me the company wants to start trading in time for its six-month stock lock-up period to expire before the end of the year, allowing employees to file before the capital gains tax hike in 2013. the keynote speaker last night could not avoid questions about what facebook's ipo means for his company. >> we don't care about what the market window is for going public and whether there is a window and when it closes or anything like that. i don't pay any attention to that and i try to get everyone else in the company not to pay any attention to that. so it will be fascinating to see what happens. i'm sure everyone will stay up wednesday night and read the s1. but i just can't focus on that. >> reporter: he acknowledged that twitter will eventually run into that 500 shareholder rule as well a

julia boorstin is here to break down what are some very impressive numbers. hi, julia. >> hi, sue.k continues to dominate the display market with number one market share by far. facebook delivered 28% of all display ads in the u.s. last year. that's up from 21% in 2010 as it continues to steal share and make gains on its rivals. coming in in second place, yahoo! had just 11% market share followed by microsoft and google in a distant third and fourth place with 4.5% and 3.5% respectively. so why is facebook winning? all that user information from profiles and behavior enables narrow targeting and brands can connect with their fans who are more open to marketing messages. plus there's what they call the amplification effect. when fans send a marketing message to their friends. >> if you can get a communication going from the fan to their friends, an amplification both in terms of reach, how many people you can reach with the message and amplification in terms of persuasion. i think that is a very, very powerful aspect of advertising on facebook. >> he expects facebook to continue to

first julia boorstin has the market wrap. >> take a look at how stocks are doing right now.t 15 minutes left before the closing bell. the dow is now down about 4.5 points. s&p 500 up about a point and the nasdaq higher by 9.5 points. the stocks have pared their losses ahead of the close. banks have made some gains as investors look past europe's debt crisis and start of again to focus on fundamentals. that's it from cnbc. first in business worldwide. see plaque psoriasis. i decided enough is enough. ♪ [ spa lady ] i started enbrel. it's clinically proven to provide clearer skin. [ rv guy ] enbrel may not work for everyone -- and may not clear you completely, but for many, it gets skin clearer fast, within 2 months, and keeps it clearer up to 9 months. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal, events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis

we are bogey to check in with cnbc's julia boorstin and joins us with more on that and the rest of the day's business headlines. >> hello, barbara. pending home sales are weighing on stocks and this housing market indicator fell 3.5% in december. according to the national association of realtors. after hitting its highest level of the year and a half. that was a bigger decline than economists expected. let's take a look at where the markets are trading. dow is off about half a percent. s&p 500 is down just a fraction of a percent. nasdaq is about half of -- .5%. the dow and s&p were weighed down by concerns of greek debt costs and the european central bank may take losses on its greek bond holdings. >>> plus, earnings have been lackluster. so far only 58 percent of companies have been -- beat forecast compared to 78% average at this point in earnings season. boeing's shares fell to lower than expected 2012. to lower -- on lower than expected 2012 earnings forecast. and some lackluster earnings have also been coming from companies like corning. plummeted over 10% as manufacturers use le