even worse the ipo pipeline looks a lot like what we saw in the first quarter, 25% are health care, mostly biotech, 20% are tech. this market will wilt under that ipo epidemic. so we need to cure the disease. what would a cure look like? if we get less enthusiasm for ipos like we saw last week i think that would be a good thing. we are not going up with these all priced, we are going down. bottom line we're beginning to see the possibility of a decline in the number of new deals. more on that later. but from the report card these ipos are toxic for all but those who got in on the ipo price and only on that price and then sold them into the pop. that's the exact opposite of what the bulls need and want to see. after the break i'll try to save you more money. you more money. >>> coming up, obscured opportunity? next generation science and the tax time headaches. the market may have been in selloff mode, but at time honored trend has been taking these stocks higher. don't miss it. and later, retirement reality. get ready to rethink everything you've been told about your 401(k). make sure you'

most of the ipo were priced below the range. most ipos traded below the ipo price. we were lucky enough to -- price was in the range and traded up after that. so i think we're doing okay. >> joining me from chicago now is joseph shuster, founder of ipoc shuster. what's your take on the ipo market? do you think we'll continue to see this type of momentum continuing over the next couple of weeks or are we going to start to say the lofty levels are too lofty at the moment? >> i think the ipo pricing sentiment to market is becoming kind of selective, small deals in specialty industries like technology, health care, energy, are well in demand but surprising sentiment for lather deals is going to be more difficult down the road. that's reflect ed that weibo is priced way below initial range and other larger ipos have done so as well. >> do you think that the u.s. now is the default market to ipo in? the actual ipos and success they're having, a lot of them are nasdaq listings. >> maybe well true, especially in technology. alibaba is coming to the u.s. but the european ipo

we are at the napalm stage for the ipo market. you look back at recent deals that shows you how weak things have gotten. consider the following sorry ipo war stories from coupons.com, which makes digital coupons. traded at $30 when it opened. it's down 29 in the after market. a huge software is a service health care play traded at 39. $80. a ridiculous spike from the pricing. now you can say that cast light like coupon is still above the original price. if you got in on the deal you're still on the block, but how many got in except for the favored few who will now be asked to pay the piper? check this out. amber road, which i said sounded like a craft beer company but is a software play. it rose on the first day, but has since fallen 11%. up 17% from the pricing. that's about the best of the remaining lot. pay lossty, a human software company is up 13% from the ipo price. q-2 holdings for community bankers is down 8% in the after market. up 7% from where it became public. a cloud-based online degree software name, a cloud based --

the ipo window was blown open for the last year or so. that had been missing for a very long time in vc." such ipos include facebook... twitter... linked-in... and groupon... which are all holding steady -- despite some having a rocky start -- and that's giving the market a green light to keep speeding ahead in the ipo fast lane. john malloy of blue run ventures says his firm is poised to take advantage of the momentum for start-ups in the mobile sector and technology. he's one of 32 venture capitalists surveyed to determine the 'silicon valley v-c confidence index'... which registered 3.9 out of 5 points... approaching values it hasn't reached since a university of san francisco professor began collecting the ratings and comments 10 years ago. "vcs have been able to take more firms to public offering, to exit, which makes more funding available for the next round of innovators." bob ackerman of allegis capital is also funding those innovators... especially in the cyber security... cloud computing... and big data arenas. but he's not in an

the ipo process in vietnam is rudimentary. simply register with one of the stock exchanges and then hold an ipo through the auction process. that might be another reason why the market has not been very sophisticated with these ipos. >> putting the cart before the horse. why is there such a rush to ipo? recognizesrnment that they really need to reform the soe's. it's a really big piece of for vietnam. they have put an aggressive plan for fixing sales of 132 companies by the end of next year. so a lot of these companies feel an immense pressure to really get these initial offerings happening. but unfortunately, a lot of them don't feel very motivated or the structure is not there to make sure that these ipos are successful. the ipos do take up a lot -- the state companies do take up a lot of state resources and capital and do account for a lot of the bad debt that the banks are now burdened with. so a lot of pressure to get them to sell shares. of excitementt for vietnam equities last year, a lot of foreign investors just hanke

[laughter] liz: let's look at the ipo point because we can show the top five performing ipos, and thene'll show the worst performing ipos this year, the ones taffe come public year. four out of five here for the best performers are biotech or health care. if you flip it over to the worst performers, there are a couple of biotech, but then you've got two tech stocks. well, you could car care.com and kings digital is a social media. they're of the candy crush infamy. >> yeah. and i would even, i would say 2014 is going to mirror 2013 pretty closely with health care, financial services and tech leading the way. in addition, i think the ipo pool is going to be filled and dominated by healthy, cash-flowing companies. liz: yeah. nicole, you're on the floor, what do you see there? >> reporter: number one, volume. what we should note here is volume is 9% above average. so that shows conviction in this selling -- liz: wait, wait, wait. you know what? i'm sorry, but we had scott saying volume was not outsized today. but i guess 9% higher is something at least to mention here. >> reporter: well,

>> it is the renaissance ipo etf. ly that is a portfolio of all the companies that have gone public within the last two years and it is among the largest and most liquid once. those companies are already trading. investorshows you how are doing -- who invested in these companies. the performance had been outstanding through 2013 and all the way through march 2014. once the etf started to underperform the market, that was a signal and should be a signal to the ipo issuance it will be hard to get ipos done unless it just didn't pricing. in post-ipo trading investors are making money. we would look at the etf and look for an upturn in it as a sign that the marketplace, the window will open for upcoming ipos. we are currently in a very challenging ipo market. >> do you believe investors are going to push back on ipo pricing's? what are the going to be looking for? ininvestors are losing money the current portfolio of ipos. they are not going to look at new ones that discounted pricing. last week 16 ipos were supposed to ge

we are expecting the biggest ipo filing since facebook with alibaba. the commerce e-commerce giant is on an investment spree with the latest deal announced today. first, a check on your top headlines. apple and samsung are ready to make their final pitches to the jury. closing arguments will begin today in the blockbuster patent trial. apple is seeking $2.2 billion in damages for patent infringement. a win would allow the company to seek a sales ban on earlier models of samsung phones. an update from google on its self-driving cars. the company says that cars have logged nearly 700,000 autonomous miles. google has been testing the cars around their hometown of mountainview, to improve their ability of driving in urban areas, but they say there are more problems to solve before the car starts driving in other cities. microsoft will begin rolling out its first original xbox tv shows in june, including a reality series called "every street united" which will cover local soccer teams, as well as coverage of the binary music festival. to our lead story. afte

the ipos are one piece of that. ing a lot of the venture capital and new business formation we should be getting particularly because we don't have an immigration reform on high-skilled workers. disproportionately immigrants who are highly educated, educated here in the united states. also the people who start those new companies that become much bigger companies and are the backbone of employment growth. >> diane, the ten-year now below 273. i guess so much for thinking about rates going up in six months. >> it's interesting how the market did over react to the tapering talk. i think the fed made it clear. janet yellen this week made it clear. she said point blank in some ways this labor market recovery is as bad as recession. and i think that she's right about that. and i think she made it clear that even when the fed does start raising rates it's going to be a slow process. it's not going to be up to any levels of the rates we saw in the past. we're in a low rate environment for a long time. it would be great if i

when does the ipo window close? much damage has to be done to the indices before the bankers start saying, you know what, we're cool, hold off until the next quarter? >> i think they will keep putting it out as long as people keep taking them. the smaller ipos leads to more supply down the road. the fact these companies keep going out is a negative on supply going forward. in a name like ibm, it's not as worrisome as- >> they're still buying those shares, the big names. >> right. >> paul, tomorrow, earnings kicks off. what's the overall impact on the market? >> the sentiment al overall is very negative. ratings guidance is higher than we normally see. it's even higher ratio. analyst sentiment is extremely negative. only five days in the last four months the trailing revision has exceeded downward revision. and looking at the guidance, if weather was really the factor it was in q-1, we should see compa companies coming out in their commentary and saying we've seen a real pickup in the last three weeks and if we don't

wait until you see some of the other ipos that are coming, scott. we've had bill gurly on this show tell uses last year, mid ol last year, that the market was topping out. the private equity firms like his venture capital firms and the like are saying the valuations are ludicrous. look at where they're pricing. some of the ones that bill owns. i reached out to him on this. when uber comes out you don't think people will be pulling money out of i've are where to throw money at uber or air b and b or pinterest. >> bob pisani on the floor of the new york stock exchange. >> something interesting just happened here. the s.e.c., scott, has charged a new jersey brokerage firm with manipulative trading. the charge is layering the back. layering involves placing orders to buy and sell stock with no intention of having them executed. but rather to trick others into buying or selling a stock at an artificial price driven by the orders the trader later cancels. it's sort of a deception. two firms and five individuals agree to pay a combined total of nearly $3 mi

alibaba goes on investment spree as we await the record-setting ipo filing. a check of your bloomberg top headlines. closing arguments are set for the apple samsung patent trial. they have applied him or darrell basham more narrow application. at&t is planning to bring 4g marlys access to flights. they could start this as soon as next year. dividershares of wi-fi plunging in after-hours. drivingays the self cars logged nearly 700,000 autonomous miles. google has been testing the cars around the hometown of mountain view, to improve their ability weeks after the disclosure of the heartbleed glitch, there is another major glitch. this affects about 25% of browsers out there, looking at versions six through 11, although the most recent ones are mainly being hurt. the way it works, it gives the hacker the same level of access as the official user. people that still have microsoft xp, windows xp, are particularly troubled in this case. cory johnson, microsoft stopped providing security patches for xp, so those 3 million machines have nothing to do. >> we know the m

you can look at the ipo, that's the etf, i know confusing for the ipo business, it's down. hat green line. that's the etf for ipos, about 60 ipos, renaissance runs it. you see how it's been trending down in the last month? again, it's heading down again. the blue lines the s&p 500, so, guys, the etf, the markets, the ipo market, is now below the overall market, when it was a huge business just a month ago. that's what i'm talking about, the trend line has really reversed here. we'll see what happens next week, a big pizza company going public. no tech ipos, though. that will be a nice reprieve for them. i think a lot of people are worried about potentially repricing the ipo market. brian? >> you know, bob, i have to tell you something. you calling me scott, don't worry. that's the nicest thing i'll be called all day. i can assure you. >> i'm so used to him being there, and i apologize. >> not a problem at all, bill. my pleasure. take care, bob. [ laughter ] let's tack about that a bit, cast light health, nobody is better than bob, great points. every ipo has been a dog in th

, the white line, the ipo etf versus the s&p. now it's negative for the year. guys? >> you can see exactly where it crosses over. thank you very much, bob pisani. let's bring in another authority on this subject. herb is still sticking around as well. david, i know you agree with bob that these low floats artificially push the price up but there's one real issue i want to raise. we have been talking about high frequency trading and whether or not it creates an unlevel playing field. you also believe that ipos are quote, rigged. >> i will use the word rigged. i will be very clear about that. because this is a game that favors those with the money. it's the simple formula. as much as all the regulations have tried to come in and fix this situation, if you look at the allocation curves, the people pushing the big money around are the ones that gain the favors of the brokers. it's not a level playing field. clear and simple. >> but unlike high frequency trading, to mandy's point, which is still a relatively new phenomena, the phenome

the ipo market is not in a bubble. very happy to see that because i think the investors are the ones that matter the most. >> everyone is talking about the big chinese company comes to market. why are we so concerned about this? >> i don't think there is anyone who follows any stock that is not interested in this company and what we will learn when they disclose information which we hear will be next week. this is going be a whale of an ipo. we understand that it may possibly be valued at something like $150 billion or more. that will mean that in time, almost every portfolio and index will hole this company. sit a way to play the internet, china and a fast growing company. >> i know we will get all the information next week but what do we know about the gundmentals? we think it's very easy to forget and get there over the next couple of years, sit a very profitable company. >> sounds like you think they will do well. >> we don't have to worry about anything but a price to ternings multiple. >> it seems that in an envir

when the ipos come out they're apps and biotech companies. >> right. >> where were the biotech ipos in '05 when, before it was started outperform the s&p for year after year after year. now you have this hot move and all of sudden everyone wants to buy ipos in the biotech area or app area. is there momentum gain. probably. if you want to make investment for three years. this is like buying dot-com ipo in '99. don't think you will hold it three to five years around make money. >> that is why the virtu ipo is anomaly. this is not a high-tech company. this company didn't lose money for the last five years. adam: bring you in while charlie answers his phone. real quick, weibo did pretty well. they priced low but closed 19% higher than the market. >> that really has been the exception. both charlie and jonas hit the nail on the head here in this case. when a particular sector does well that bring as lot more speculators, maybe perhaps some suspect companies get funded. that is good for everyone. allows innovation to move forward. to charlie's point what sun fortunate. this is not question o

the hotel chain is seeking to raise 71 20 million dollars in its ipo. e company is backed by blackstone group. must we, the big ipo was grubhub, the service that allows people to order a delivery online. the ceo spoke with the "market makers" team last friday. >> the reason we did the ipo was to gain exposure on the company. this is a massive marketplace. $70 billion spent annually on pickup and delivery in the u.s. alone, and only three percent is based online in any way. >> why would you want to price your deal at $835 price at a time when investors cannot seem to make 10% returns? you made 50% in 20 minutes. >> focusing on the innovation and the powerful two-sided network, we are showing how strong this industry is. we are accelerating through innovation very very rapidly. the ipo process was not necessarily about raising the cash. it is dry powder, in the bank. it is about exposure and showing the world what a powerful and simple business model we have built. >> you are right. grubhub is the leader in what is thus far a big industry. what are the bar

and as you will see throughout this show, i've been adamant that the ipos, endless insider selling, and valuations on sales, not earnings, are all making it, so we don't have a clue where the nasdaq bottom might be, although i remain somewhat sanguine about its dow brethren. worse, it's become clear that many people are overextended, meaning they're borrowing a huge amount of money to buy stock. let me be very clear about something. i don't care what you say about margin buying. if you're doing it, and i know it's a record level, you're wrong. recognize that you can borrow money to go to college or buy a house, but you should never, ever buy stock with borrowed money, which is why i'm starting next week's game plan with a marching order. as tempted a as you might be to buy a host of fast-growing companies, i find it somewhat tempting myself, you must sell, not buy stocks on monday in you're using margin debt. the figures are really glaring about this. for those of you that aren't using margin, and want to use these declines to average down, let me also be clear. you might want to sell s

the biggest ipo of 2014 finally prices the low end of the range. is this the top of the ipo way? e ceo will join us. walmart goes all in for organic while other retailers report negative news. can you blame it all on the weather? first up, though, just what the doctor ordered for the bulls. all three major stock indices each rose more than 1% in yesterday's session after minutes from last month's fed policy meeting indicated the central bank may not raise interest rates any time soon. one of the so-called momentum stocks was the biggest gainer on the s&p. facebook up 7.5%. we watched that thing climb all day, jim. a lot of talk about how many growth guys are actually just taking refuge in fb. >> yeah. the analyst coverage started with jordan rohan. you've got to give him the credit. saying listen, this is the one, that stock finished up monday and the hideous action. people come out of the fox hole and reiterate. this yesterday was about the fact that the numbers are too low. one of the things i think people are starting to distinguish is there's a company with earnings. and the o

of investor appetite take place here as well. >> the grubhub guys like the deal that it ran after the ipo. it is a profitable company. here is the problem with profitability. the price-to-earnings ratio, not just wall street geek talk but it speaks to -- it is trading at this price, 217 times last year's earnings. that is higher than tesla or anything i can think of of note. what is it that people seem to like about this deal? >> it obviously has a brand name. with tech companies, it is rare to see this profitability. i think they like the fundamentals and they like the brand name. they take a commission from each restaurant. it is relatively easy to predict that over the long run. it is what investors are looking for these days. >> essentially, they have this plan that opentable tries to take, reservations trying to take the mobile. these guys have a similar model that they think they can make the connection between restaurants and deliver, being that platform. >> they say they took the standard paper menus and telephone calls, making their order to restaurants and putting that on the we

yes it is a profitable company but what does it tell us about where we are in the ipo market and the mand for these technology ipos wherever they are? >> they are insanely optimistic valuations. for a company that is already generating revenue you can kind of get a sense of where you expect the numbers to go in the next couple of years. it may take a little bit of time for this valuation to catch up with the realities. when you compare that to what else is happening in the technology world, $19 billion for what's apt. hatsapp.w i think investors are having trouble waiting the risks versus rewards here. >> i think the differences they were getting paid primarily in stock where as these people, grubhub, are getting cash money from investors. in terms of the numbers of ipos, do you get a sense of the companies you talk to in the bay area -- sense of the companies you talk to in the bay area are approaching the company? >> there is thirst for capital throughout the technology industry. the ipo market, it wasn't a very viable place for technologies that for technology companies to go. capi

coming up next, everyone, details on the bolus ipo. eak to the chief executive who is committed to retaining control of his firm. ♪ welcome back. i have breaking news from julie hyman about what is been going on with the debate over high-frequency trading. the state of new york has sets a numbert subpoenas to of high-frequency traders and is seeking information into the ark who'll private exchanges that are not as transparent as the public exchanges. this has really been sparked by the publication of the michael lewis book looking into high-frequency trading. there has been a lot of debate over it in recent days and there have been various investigations that have been brought into it since then. this is the latest of those, subpoenas going from the state of new york to high-frequency traders, trying to get more information on dark pools. we will keep you posted and bring you headlines as the get them. >> thank you so much, julie hyman. begins for bolus and company. the shares are climbing after the company raised less than it had hoped

but the timing of its ipo could be a factor. 4% this year. >> all right. now ahead of its listing weibo updated it's pro spec does. coming in higher than the $25.9 million it earned during the same quarter last year but lower on a sequential basis. in q1 it reported $4.8 million citing seasonal trends. >> thanks for that. in terms of the rev view, the decline was 5%. they're saying because it's chinese new year. buy that? >> these guys have huge competitive landscape. it's the classic case, have they converted. the things that give me confidence about this stock is who are their main parents. >> two biggest companies. >> it's alibaba and alibaba is 26% of their revenue. and these are guys that will support this company. i will be buying sina. not terribly interesting on the current numbers. i think the headline risk on competition, way overstated. now mid 50s, low 50s. interesting place. >> google conference call wrapping up. shares starting to come back slightly. we have got the headlines next. later, the dirty side of bitcoin.

most people can't get in at the ipo price. levels would somebody out there -- >> initial range is 17 to 19. it's probably not going to increase. we expect it will pop in the mid 20s at least on the first day and trading closer to 30 in the next couple days. market cap ended up being at 30. roughly $6.5 billion. >> $6.5 billion? >> yeah. it's growing faster than twitter. it has china and a little known contract with ali baba where they're guaranteed added revenue and that's for the next eight quarters. you're going to see webo blow away its numbers. a lot of investors are not going to think they have a special deal for two years. they're going to see them blowing away their numbers quarter after quarter. if anything, you either believe that webo is dramatically undervalued and twitter is the most overvalued stock. if you want to hedge it, you sell, and you go webo. >> yahoo is trading as if allie baba's cop is going to be south of 150. >> yeah. >> does it matter. i think it does. >> i think it matters. >> it doesn't matter. >>

so he has scoured all of the ipos and four stocks he likes he says you can buy after the drop settlesning us now, tom tolley, ipo playbook editor. tom, i mean, the ipos started to look scary, haven't they? especially since we saw tech and social media drop. yet you looking at some of these and said there is city opportunity. how do you find those gems? liz: i've been -- >> i've been following the market a long time. i been on the show several times and always mentioned if you wait long enough you can usually get good prices on ipos and i think that day has come. usually can't get it at offering price that goes to the big investors because the stock skyrockets on first day. a lot of companies, at least four i named, came back to the offering price or below their offering prices. david: this is overall chart of the ipos, the etf that tracks them but i want to talk specifically and just simplest ipo we could talk about because some deal with cloud computing, et cetera, which is above my pay grade. care.com. it is a family care center. they deal with child care and senior care, two very b

and the number of ipos that have fallen. resting thing about biotech, actually the numbering increase. if you look at the smaller companies where you can get the growth and you will be able to justify the valuations, that's where the opportunity is. >> thanks for being here. again, welcome. >> thank you. >> look forward to having you on the show. don't miss tomorrow, meg's rare interview with pfizer ceo ian read, who is also the incoming chairman of pharma. that is at 11:40 a.m. eastern tomorrow. do not want to miss that with the pfizer chairman/ceo. >>> gold is down slightly today, but what will this afternoon's fed minutes mean for bullion? let's go to jackie deangelis. >> what's interesting, scott, about the action today, even though it's down, it's able to hold over that critical 1,300 level. as you said, the question is what will happen this afternoon when the minutes come out at 2:00. jeff killburg, i want to get your take. what do you think will happen today to gold? >> jackie, they're laser focused on the fomc minutes

>> the ipo mania continues all for ipos that opened for trade today.hey're trading much higher than their offer price but does a big first day mean it's a good stock to invest in? >>> and iran exported nearly a million and a half barrels of oil per day in february. the white house said it would never be more than one million. that's up with that? in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. and a life of purpose and meaning was infused into a corporate culture. there was a commitment to creating new jobs out of recycled metals, right here in america. and a bank that helped carolyn rafaelian's business grow from a rhode island storefront into a global sensation. th

first, the ipo is off to a fairly strong start for weibo. are at the low end of the range, $285 million. they are controlled by a chinese online compnaany. joining me, their chairman and ceo. how are you feeling? >> great. it has been a tough market. nasdaq and the entire u.s. market -- we can pricehat today and have good trading results. i am very happy. >> you mentioned nasdaq. why go public now? >> whenever time to the market -- we never timed the market. when we started, it was back in december. at that time, the market was great. we had some rough times in the last couple of weeks. is notming -- timing important. you have a private company and we are here for the long term. we're very confident that we can do well. shareholder value over the long term -- it does not matter when we get in here. >> you tried to price at the low end of the range. share.ned at $16.27 per why do you think you had difficulty selling as many shares as you wanted? >> the problem is the market. this week and part of next week. a lot are priced below the range. on

waiting into the ipo market, despite the recent -- recent tech selloff. i will speak to the chairman of what many call the twitter of china. a $20 million loss in the first quarter after posting profits the past two quarters, but sales did rise 28% due to strong revenues from the company's videogame console business. use the chips.ne netflix and vodafone are talking about giving vodafone subscribers access to netflix movies and tv shows. the netflix content would be free for a time, according to people familiar with those matters. contentdy has similar deals with spotify. edward snowden has made an appearance on russian tv. for my video link, he asked intercept, russia store, or analyze the can -- communications of individuals? russia answered that cannot afford such surveillance. now to our lead story of the day. facebook has added a new feature called nearby friends. it will let mobile users know when their facebook friends are physically nearby with messages on their smart phone. the tool is optional and will be available in the coming weeks. facebook

the floor. >> we will check in with you shortly. focusg now to our special on ipo's, a company was not able to raise as much money as it had hoped in its initial public offering. cristina alesci has more. how is it the pricing came up short here? of way you want to come out of the gate, for sure. not only did they downsize the overall offering of shares, but they priced below the reins. we are starting to see some cracks in the ipo market. a number of offerings priced below the range. this was a tough deal from the get-go. appears -- has also taken a beating over the last couple of weeks. that had an impact here. ,> how lucrative could this be the ipo model? what is he trying to raise money for? >> that is a big factor. most of the ipo rose seeds are payment toone-time can and his partners. they will be getting $130 million added to the offering. he is still going to on a sizable stake into the firm. it will be worth about $320 million and another 90 million is held in a family trust. what they will say at the end of the day is that they are going public to have curr

ipo. so this one took off. it really bucks the trend what we've seen recently. for example, had their ipo this week sold off and so that is has been under pressure. over the last 12 months, liz and dave, about one quarter of the ipos listed are actually below the ipo price, broke the ipo price. that is not necessarily good for investors. they try to like to keep it at the ipo price or higher. we had a busy week. this is the biggest week for ipos since 2007. back to you. david: what a week to come out with an ipo. thanks, nicole. have a good weekend. liz: things can go high wire on floors when there are big drops or big jumps and we saw a technical issue on tuesday at the chicago mercantile exchange where they had to halt electronic trading on several agricultural contracts, that forced traders, you may have heard phil flynn talk about it on tuesday, run out of offices away from computers and revert to the old open outcry trading method, right? that got us thinking what are some of the benefits of knowing hand signals but is it a dying art and should it be revived

it is a little clues -- too close to tell where we are in terms of the ipo market. signal.tainly is a >> to say the least>> season, we have so many big deals about to come down the chute not least of which is alibaba. will the market look at these deals and not be able to digest them? it's difficult in terms of pricing. a lot of these companies look at their publicly traded comparables. commercere an e- company, you will price your shares based on where amazon is trading. amazon is down tremendously. that will impact the amount you're able to raise in your ipo. it will also impact the ipo discount to get investors to invest in shares. this is a cheaper way to value shares in order to get investors to buy in expecting the first date pop. when markets look like this and volatility picks up in the market starts tanking come you have to give investors a bigger ipo discount which cuts into your proceeds. for the very first time, we have been asking investors and entrepreneurs if we are in a bubble. one venture capitalist finally said yes. that was george zachary. do you t

chuck coppola steps in now with more on the ipo market monster. angie, it's being called "bigger than facebook". anticipation is huge as rumours swirl that chinese e-commerce site alibaba is prepping for an ipo in the u.s. the company has more sales than amazon and ebay combined, and has a $15 billion dollar valuation. that could rise to as much as 150 billion dollars after the ipo. analysts are speculating the stock will debut this summer. josef schuster of ipo-x- schuster expects it to debut-- this november. "it could be really exciting for the us capital markets to have a primary listing like alibaba which is really a key name in the e-commerce space " alibaba is not commenting on the buildup of rumours. yahoo holds a 24% stake in alibaba, and its stock is on the go. shares jumped 6% yesterday. the u.s. economy still needs little help from the fed. that's one of the points that came from federal reserve chairman janet yellen who spoke yesterday at the economic club of new york. yellen says the fed's policies must respond to significant unexpecte

what does it tell us about where we are in the ipo market? >> you are right. that is optimistic valuation. they are at 2 billion dollar market cap. for a company that is generating revenue, you get a sense of where you expect the numbers to go in the next couple of years. it takes time for the valuation to catch up. when you compare that to what else is happening in the technology world, $19 billion for whatsapp. investors are kind of having a little trouble weighing the risk versus reward. >> and what apple is getting paid primarily in a stock. all of these ipo's are getting money from investors. in terms of the numbers, you get a sense of the companies you talk to in the bay area, technology companies are at large -- they want to be fat. >> their thirst. the ipo market, not really a viable place maybe five years ago. they felt there is so much venture capital money, let's stay private. that is going away. there is still so much private money available that you see with raising $270 million in a week. there were several more deals like that earlier in the last

the world's largest funds. is on a patenta buying spree ahead of its ipo. ill look at why this sets the company apart from google, facebook, and twitter. should you buy? ♪ >> alibaba is beefing up its u.s. patent holdings before it goes public. a lot at stake here. -- ipo may be megan hughes has more on this. megan, talk to me about the patent strategy. what is it? as a defensives move. a company announces it is going public entity -- it becomes vulnerable to competitors and has a target on its back for litigation. all the patents ali baba is looking to acquire can act as a defensive shield. so far, the company has gotten 102 patents, including 20 purchases from ibm just last year. applications on 300 others pending. all of these have something to do with e-commerce. payment processing. yahoo! owns a 24% stake in ali baba antidotes -- and it holds 1500 dollars and patents. that is at least one potential predator that is at the table. it seems to be part of the company'strategy. >> what is it worth for them? why are they doing this and why are other big tech

vinnie might do the ipo in two eaks or six months. it all depends on the market.nts to do this. he wants to wait until the market improves. there was some speculation he pulled the ipo because of the investigation into high frequency trading by eric schneiderman, that virtu received a is in this investigation. we're told that virtu has not received a subpoena in this investigation. this is mostly related to valuations and, when the valuations come back i am told, vinnie viola, vinnie will come back with this april pope. that is where we stand right now. it is not pulled, it is not pulled forever. it is pulled for the time-being. guys, back to you. liz: good reporting. once again, charlie says they haven't pulled the actual filing paperwork. >> right, you got it. liz: thank you very much, charlie gasparino. rich: well, it may sound like something out of a science fiction movie but how about paying for goods and services with the wave of a hand? we'll tell you about a potential game changer in the mobile payments business that is now becoming a reality. humans. we a

the latest on vietnam's slumping ipo market. all right. some of the other stories we're following for you this morning. >> the strike may almost be over at the chinese company that makes shoes for nike, adeeds. most workers have returned to work. the dispute over pay and conditions began on april 14. it has cost the company about $27 million. settling the strike is set to rise employee cost among $30 mountain for this year alone. the bank is banning all bit coin transactions. the nation's biggest exchange. the government is urging financial companies to halt bit coins after trading surge in china. india's icic bank has announced record profits but shares fell on investor concern about rising defaults. customers are starting to repay loan because india had some of borrowing costs in asia. >> if you look at it forward, i ink it would have been the peak in terms of the destructrd assets. additions and restructured assets, seem to be lowored. >> these are the top headlines this monday morning. >> well, jobs could be on the line at toyota u.s.

of money ine a ton the ipo. a very young company. trying to figure out the levers that make the business work. what we have seen for them over time is with all of the shakeups that led up to pre-ipo coverage so well is that they are still figuring out what they want to be. they are figuring out how to be. still a company and a very young stage. saide ceo of twitter has it is and wants to be the global town square. can they be that? he will be on the show tomorrow and we will speak to him. i want to take a look at the milestones since it has seen since it went public. >> november 7, twitter shares pot more than 70% on the first day of trading. december 26, hitting the peak stock price of $73.31 per share. twitter is making changes to reach more people than ever before. march second, ellen degeneres famous oscar selfie get 3.4 million retweets. new low aprile 11. april 20 second, twitter unveils the new facebook like profile pages. coming up on may 5, the first lockup experienced -- expires the top insiders say they are not selling. it

>> in the banking department to help underwrite ipos. that is not an especially popular position on wall street, but fundamental analysts are not there to help investors make money. they are there to get deals moved forward and help the syndicate. ask you think those who do fundamental analysis should be equity bankers? x no, i think -- >> no, i think those who do fundamental analysis are investment bankers. >> i think some investment anchors our salesmen. the idea is you have a bunch of 26 roles pumping out pitch books. >> and who is writing those its books? it is the fundamental analysis. they are contributing the data, the narrative to those pitch books. and the data on ipos, if you were to buy an equal amount of every ipo, it's some big money. in leslieto bring picker to the come -- the conversation. sawmoelis start trading, the first investment company to start trading. but they've had a hiccup getting there. what do you think about that? >> they left quite a bit of table,n that -- on the you might say. companiesason is, such as the

at the same time the ipo insiders are dumping more stock on the market and few money managers have thee or more importantly perhaps the cash on hand to buy this additional merchandise. that's why they pass those stocks that they would have loved to buy much higher just a month ago. on top of that the neophyte buyers and the people that like twitter and the website, and they buyity twer the stock and they're in total panic mode. the people ator feed, it's tough to read and you know exactly what's happening. it's a nasty situation. let me give you the bottom line. trying to be both sichl thetic and pragmatic here. until insiders find levels they won't sell at, the ipos get settled or more money comes in because the economy falters or we finally get to levels where the selling stops and i don't know where that will be, i can expect they'll be selling into every lift as there was in the afternoon today. this nasdaq decline is not just about the fundamentals. by the way, the fundamentals are pretty darn good. it's about the mechanics of the market which means these stocks will keep getting

we never want to have the ipo with a gun to our head. >> right. n, thank you for joining us. it is time for the bwest byte, where we focus on one number that tells us a whole lot. cory and jon are in new york together. what have you got for us? [laughter] >> the bwest byte, the bytw refers to a twitter post -- 106,872. #mynypd. they were able to get people to put up their favorite moments of the nypd. they showed things that look like frisking and suggestive police brutality. >> they weren't all bad. i did see that #epicfail. >> yes. >> all right. be sure to catch "bloomberg west" tomorrow. i have a special guest. ♪ >> my name is larry king. a few years ago, i had to have open heart surgery. when i recovered, i helped establish the larry king c

the ipo market, not really a viable place maybe five years ago. they fell to the is so much venture capital money, let's stay private. that is going away. there is still so much private money available that you see with raising $270 million in a week. dealswere several more like that earlier in the last month. the private market and the public markets are ready. >> interesting stuff. mark milian also bloomberg news. one of the copies going public is opower which revise cloud-based technology and help customers understand data more efficiently. shares rising and the public debut. joining us from the new york stock exchange is open our --opower's ceo. thingnot heard a single about the company on till reading the prospect of a couple of days the goals. a couple of days ago. you're helping to cut energy prices. all aroundutilities the globe to give them better information about energy use and improve customer satisfaction and help them retain companies in a competitive market. it helps them help their consumers save utility which is counterintuitive th

their you'd like must be disclosed in the ipo documents. that is why they delayed it. melissa: this is one of those ipos talking about for a while. how there was so many excitement. to now hear it is pulled basically because of this book, shows the power that it is having. are you surprised by that? >> look, michael lewis is a terrific author. any book he publishes becomes a event and often become as movie. no surprise it gets a lost publicity. i think the "60 minutes" interview, i have not read the book but read enough to hear the word rigged often enough. melissa: that keeps getting played. >> that is way overblown. the average investor, nobody watching this program on this network except rupert murdoch perhaps a billionaire would have any judge against what has gone on. >> he wouldn't either. >> nobody, charlie, if your aunt harriet, i say aunt air yet because you remind me of batman. >> thank you. >> if you're aunt harriet -- melissa: i don't know what he means. >> 100 shares, don't take out the cape. 100 shares of google nobody cares that aunt harriet buys 100 shar

timing of the ipo is still to be determined. bly so annoyed right now. but vinnie's now saying, wait a minute, the white knight in michael lewis' book is saying that we're okay. i was going to say, do we have a picture of vinnie viola? is that sepia tauped? >> that's how he looks. liz: now let's bring in two of the streets premier experts on high frequency trading. they've been fighting for years to regulate the industry. dennis kelleher, better markets ceo and president, and joe silussi. and michael lewis b writes about joe, saying, quote, the principals of demus trading have done more than anyone to explain and publicize the predation in the stock market. all right, you got a nod here, joe. what have you been doing and for how long? >> we've been around for a long time. we're not new to the game. sal and i started our firm in 2002. we started researching some of this high frequency trading stuff in 2005 with, 2007 our first paper was in 2008. so we're talking fife years ago. and in 2012 we wrote a book called "broken markets" w

i do not want to skip it. >> you get the irs story next. ipo is such a big deal. iscussing it with the roundtable. ♪ >> we are back with the roundup. matt and julie here. we are anticipating those apple numbers. let's move on to the other stories we're covering. david einhorn is betting against the cool kids. greenlight capital says it is shorting a group of tax cops -- of tech stocks. s itfirm says the companie is betting against may fall by 90%. that light sided tech ipos did little more than attract the right venture capital. i think he makes some very interesting points. we did a lot of fundamental work. , this letter,me that he was just taking small positions without doing all of that fundamental work that we would normally expect of david einhorn. he points out that it is not a good idea, but he is doing it anyway. >> i do not think we have a lot of tech companies that trade at insane valuations. >> i think that is an insane statement, are you kidding me? >> apple, qualcomm, these are trading at below 20 times. not -- it is not widespread across technology st

i do want to show you the i ipo etf. ite line, you see the big move up in the middle of march, now the big move down, that green line is the s&p 500, so the bottom line here, sue and tyler is the i want po market is now underperforming the overall market for the year after being red-hot just a month ago. back to you. >> thank you very much, bob. we're going to focus on the nasdaq, which on a percentage basis is the biggest loser of the major averages. negative for the week, so let's check bulk in with seema mody. from the chart, it looks like we're almost on the lows of the day. >> we are. there's a lot of individual stock movers contributing to the nasdaq moving lower. let's walk through them. the first one, of course, is amazon. one of the big underperformers on the nasdaq 100. remember the q4 earnings also disappointed the street. similar concerns around earnings growth. that's what seems to be playing here, and why the stock is underperforming the nasdaq right now. in terms of where we're seeing some bright spots, why

leslie covers the ipo market. out, what does it tell you about this deal? april 1,member they raised it three dollars a share on the low-end and high-end. now they are pricing above that range with more shares. restaurantstive to in the u.s., relative to internet service. and relative to e-commerce, much higher. we will see if investors are receptive. >> we were trading spreadsheets today. i just took yours and cap mine. sales?ks like 15 times that is a big valuation. peers inon't have any the u.s. to compare it to. the london counterpart started training today and i have never seen a company that didn't have any here but appeared in the same day across the pond. that ipo did very well. it traded up nine percent today in the first day of trading. we are kind of seeing the same type of investor appetite take place here as well. thehe grubhub guys like deal that it ran after the ipo. it is a profitable company. here is the problem with profitability. ratio, noto-earnings just wall street geek talk but it speaks to -- it is trading at 217 times last year's ear

it goes back to the ipo, the tech people playing by their own playbook. it is curious, companies contacting one another and saying we agree not to hire them. >> if you do this in the ball bearing business -- i go back to a constant theme of the show, whose playbook on a playing by? we can see this over time how this work sound. how about another debate involving technology, the u.s. government is helping the dissidents overseas with digital surveillance. according to the new york times s," they are time paying hackers and software geeks to find alternative to the internet, a local system that is known as a mesh network. one of them is up and running in tunisia of all places, and others are planned. the initial plan of the mesh network is to foil government spying. this has become an awkward subject for some u.s. officials because of the revelations about the nsa and the internet spying. alex kliment with the eurasia clumsier andecomes clumsier, this digital espionage thing. >> there is a real challenge of grappling with this new technology. the internet a