however we know it is nothing like zynga.g is much cheaper and steadier and just downright better and, of course -- >> tasty. >> -- tastier. so because i want you to try to get a bees of this thing on march 25th, let me explain why it is the king digital so much better, yep, we're doing the king versus the zyng. first let's talk about how king is different from zynga. even though they're both in the same business. when zyfga came public after farmville was by far the most popular game on facebook, right, everyone goes excited? oh, i like that. now king digital's game candy crush is the most popular and king is coming public. oh, we should like that that would be wrong typically? the problem zynga had, the reason it was bent, spindled, mutilated is these social games don't stay popular forever. zynga was never able to duplicate the success of farmville. you may be thinking they could be facing the problem. after all the business of social mobile games is a miss and there is a lot of competition. they got 78% of sales from one

zynga shares have rallied over 25%, making this trade a winner. question -- what will these two gamers do now? >> let's see how much money is made. mike's trade cost 25 cents and can be sold for double that for a return of 100%, wow, mike, are you sticking with it? >> when we talk about these butterflies, we talk about the stock going right to that sweet spot, we would like this to happen on the expiration. i think this is an opportunity for us to take some profits on this one. even though, like most flies, if the stock rallied we wouldn't lose money. >> carter, are you sticking with this trade if. >> i think it's meant his price objective. take the money and go. >> disaster. what an amazing directional call these guys made. yes, they made 100%. it was a lot of work to do that. if they had take on the premium and had the conviction on the trade -- >> you see what happens, you have to hit the mouse button three times in a row to double your money. >> three times the mouse click. >> i'm not going to do that ever again. >> the thing about this one, y

it takes 42 cents to get in on zynga. >> this game -- >> no, it ain't.o to spend less, he pulled not one but two equal calls for 24 cents. between the lower strike call and the 24 cents he collected on those two higher strike calls, mikes a reduced his costs down to 18 cents and fwlou to make money, mike only sooedz needs to see zynga shares rise more than the cost of the trade for above $4.68. >> i created the perfect system. >> not right. if windows shares rise above $6.32, mike could be on the hoof for infinite losses. >> we are at def con 1. >> to prevent that mike bought a call, now between the 42 cents he's paying for the lower strike calm the 24 cents he is collecting by selling the two middle strike calls and the 7 cents he is paying for the higher strike call, he is shelling out a total of 45 cents. that's the most he can lose, in order to make money, he needs stocks to rise above 4.75 by april expiration. since the time of the trade, zynga shares rallied over 25%, making this trade a winner, leaving one more question, what will these two gamers

google versus zynga. here is how google stacks up against zynga.yees, $4 billion market value. david versus goliath. i've got that. what do you think? >> have to go with google. it does not add up. they still cannot get online gaming yet. google is splitting april 2. >> okay. good. priceline. how does it stack up against tesla? priceline, 8000 employees. tesla, 6000 employees. $28 billion market value. where are these companies going? elon musk just sent a local letter to customers in new jersey saying that state is staking it to you the consumer. electric cars do not need that much. stuart: more pics and our real halftime report. a very inexact science. though bush bill master of whiskey. i will ask him how he delivered a consistent product year after year, decade after decade. he is with us in a moment. ♪ so ally bank has a raise your rate cd that wothat's correct.a rate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our ra

had you bought zynga at the time of the trade, you would have made about 25%. that's pretty nice.ike's trade costs 25 cents and can be sold double that for a return of 100%. wow, mike, are you sticking with this? >> it's interesting. one of the things we are looking for is the stock to go right to that sweet spot t. strikes we are short. we would really like that to happen on expiration. this situation has happened a little sooner than i would have liked. but i think this is an opportunity for us to take profits on this one, even though unlike most flies, if the stock were to rally, we wouldn't lose money, this is about as good as it will get. >> let's see what the other half of the dynamic duo has to say? >> the pattern is played out. we would say, take the money and go. >> dan, is that what you would do? >> disaster. an amazing directional call these guys made, yes, they made 100%. yes, it was a lot of work to do that. they have taken the premium. >> you put 100% on one trade? >> you see what happens, you have as to hit the mouse button three times in a row to double your money.

it is different from zynga, 's assete 1/3 of zynga size" revenue. at what is making candy crush, a salad company. -- a solid company. >> wondering if the ipo market is frothing. >> you hear different things on the west coast versus the east coast. in the east coast, there is sector diversification in the ipo market. bankers and investors are looking at financials and sponsor backed ipos, those tend to have a more mature business , less frothy. on the west coast, they are all about growth. incredible topline -- these companies have very high valuations. >> i really appreciate the roundtable on this. thank you so much. we will be right back in two minutes. stay with us, do not miss the ceo of king digital at 10:00 a.m. ♪ top 10 traits the you do not want to miss coming up. a quick check on the mar kets. we're going to go to julie hyman at the new york stock exchange. >> hey there, alix. a higher open.e we have that durable goods report showing an increase of 2.2% last month, better than estimated. if stocks and a rising today, it would be the second s

mobile gaming ipo since zynga. we saw a lot of similarities here. zynga had one product that was the flagship product with farmville. what we learned from the zynga ipo, that people are fickle and will not play the same game forever. "candy crush" is 80% of all of king's revenues. out of 180 titles, other 179 only make up 20% of their revenues. melissa: james, thank you very much. we want to get reaction from the panel. i think your analysis is spot on. when i see stuffed animals romping around on new york stock exchange and game-maker comes out and, these guys. when i see these guys out there dancing and stock tanks, 12% at open, i say we've hit a top in this crazy, bulled up ipo market where everyone is going public. no, i'm saying that. that signals rationality? that signals that maybe people are coming back down-to-earth and maybe this insanity with that giant purple thing, i don't know what that is, what do you guys think. >> last time i saw this, pets.com. melissa: that's good. >> henry blodget touted that st

those who compare it to zynga, zynga was trading at 58 times earnings. this is sa very well multiple stock versus that. now, where they are similar is and i'm using renaissance capital, i think they do the best ipo research point out in terms of bare insights, monthly unique payers only 4% of user base but fell 7% in the fourth quarter of 2013. >> on candy or all games? >> for their -- for their games. for the games. but candy car saga was 78% of fourth "q" bookings. let's say you were buying a band, okay? let's say you were barry gordy or you're ed sullivan -- >> clive davis. >> wow. can i be clive davis? the coolest man in the room. i want to know are there more hits. when you sit with zelnick who understands the hit business at take-two and you recognize how well he's done and the valuation is one times sales i question whether this company has that second hit. >> although activision and electronic arts i believe trade at revenue multiples that may be a bit higher than this may go out at, we'll see where it actually opens today, where it's been priced

look at what happened with zynga.llen since its ipo as users defected from its games to candy crush. who is to say the same thing can't happen from candy crush to the next big thing? it has been a saga with the ipo. there are rumors that they were going to do it and then they pulled back. do you think that will weigh on the offer? asked the reason they waited was to come up with other offerings to diversify their revenue stream and show investors, we are not just relying on candy crush. it shouldn't weigh on the offering per se. it is nice that they have other games but those games haven't had enough time to come up to full speed and show investors that they can be the big hit that candy crush is. >> interesting. they were also waiting for that one billion-dollar revenue mark. do we think they learned anything else from the zynga ipo? >> we learned they have to keep everything under control. with zynga, there were issues in management and scandals on ownership structures. king has kept this very locked down. they're g

how are they going to avoid becoming another zynga? i they outpacing zynga given the revenue for this year? >> that is right, adam. so vote real issue is in the case of king digital, it really only got one game that is out there and unlike zynga which gained is on facebook, they put their games on a lot of mobile applications so they are counting on that for the revenue stream. and the ipo, quite a bit of a discount compared to where zynga is trading at. from all standpoints it looks to be a pretty good deal. cheryl: they are coming in $224 a share. that is the range, 22 million shares they are offering. this puts market value at $7 billion on king but the big concern is out there, in general they got one game and although there are new games in the works for them many on the street i very skeptical if they can deliver past the idea. 7 >> 70% of their sales are dependent on the candy crush saw that game but what is interesting about that is the game appeals to win in inert 20s. the games played over a billion times a day. comparing tha

>> this is a stronger ipo then zynga. will draw that conclusion and say is this groundhog day? are we doing this again? zynga had a couple of things against them. were in washey hitting its peak. ing and candy crush, it is mobile gaming. it opens up a whole new set of options. >> i agree with that. extrapolate that a broad. is this an ipo with an just theonal future or more developed nations and the more developed world? >> i would expect it will mirror the growth of mobile phones internationally throughout the world. whole nations are just converting over to smartphone technologies and they are going to have the same desire to play games that we have in the more developed countries. i would agree with that. >> a lot of people say that because of zynga's post-ipo struggles, space is stagnant. where do you see it and how this king digital fit in? >> they can redefine a. they can show that this is not the zynga all over again. the have to show that success they have had to date with this game on the mobile platform, that is

-- you look at zynga. 2011 ipo as users defected from its "farmville" game to candy crush. who is to say the next -- that cannot happen for candy crush? there were rumors but they pulled back. >> the reason they pull back and waited is for king to come up with some other offerings area and to diversify their revenue stream and show investors we are not reliant on candy crush. it should not weigh on the offering as such. there -- it is nice they have other games but those games have not had enough time to come up to full speed and show investors that they can be the big hit that candy crush is. >> interesting. we're waiting for that one billion-dollar revenue mark. --you think they lived landed anything else from zynga? >> they have to keep everything controlled. with zynga they were also it's with management and scandals. they have kept this blocks down. a very standard ipo process. they will get all kinds of hype but they are keeping it controlled in terms of an ipo. >> do you play? >> i do not. everyone

zynga, yelp, 3d systems, they will crash the party. you have already picked zynga. >> i like it.ess these days and playing lots of games and i look up and see the name zynga. others are just like me. nicole: that one is a lot more obvious which one should be the tech leaders and i really went with yelp because it has grown exponentially, has become a household name out of nowhere. i am not really tech savvy overall but this one keeps popping up. stuart: even though you are a brick and mortar kind of guy which one would you pick as the cinderella? >> i think yeltsin is the one and yelp is a technology company that leads you to brick and mortar. charles: i will kick out all built once and put them in. 3d, i love up and down. stuart: the halftime report, the real halftime report. thank you, everybody. the newest solar power plants goes operational. problem, it is not only flying birds right out of the sky that blinding airline pilots. we got it for you. ♪ see what's new at projectluna.com so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clie

any reason to own zynga at all?is true, and mobile ends up catching on and they do have another hit game, absolutely. >> what are the odds of the hit game? as somebody who flies a lot, they are neat at first and then they all seem completely derivative of each other. >> "gone with the wind" was a great movie at one time, too. it's the case of time. take a game like candy crush, 8% of king's revenue is tied to that. i think it's a dicey proposition which is why we stay away for now. >> they are going down to $4.25. game stop is a buy. people going back to the gaming consoles. have to leave it there. thank you. >>> still ahead, adhd does not exist. that's not us saying it. you will meet the veteran neurologist who is making that controversial claim, ahead. >>> one good investment, just read the tea leaves. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement

what we are hearing from the analysts, essentially, they do not want a zynga situation.hese are the saga games, basically the same type of play, and candy crush is in decline, it looks like, so people want to see what is happening. >> we did talk to the ceo. take a look at what he had to say about the next candy crush. >> our focus is not on finding another candy crush. been a greatas success. there are millions playing candy crush every day. we are looking for portfolio games, high-quality games where we, number one, retain the user through the portfolio, and number two, monetize them. >> why would they not want another candy crush? i thought that was an interesting way to word that. >> they have more in the pipeline. they do not want to be equally weighted with -- they do not want to be equated with farmville. not being visible about what those things are in the pipeline. >> all right, king, we will continue to follow, and, cliff, thanks so much. thatecently, we learned the's ergen contacted directv ceo about a possible merger. bloomberg is our media reporter, so exact

fact that king was actually priced at a discount to some of its competitors, like zynga. we spoke with the king ceo riccardo zacconi earlier this morning about whether the shares were just priced too high. >> my focus is not on the prize at this second. our synergy is long-term synergy. by focusing on the long-term, we create shareholder value. i think we are in an incredibly strong position. >> the king ceo on the floor there with one of the characters from one of their games. chris is joining us on the floor. what did you think about his buddy on the floor? >> one of the problems i think they had is essentially that they were sort of caught in the middle. we just do not know enough about this company. the short-term guys said, we are getting out. >> is it that big of a deal on the first day, that it dropped so much? >> what they really need to do is prove themselves. what we are hearing from the analysts, essentially, they do not want a zynga situation. these are the saga games, basically the same type of play, and candy crush is in decline, it looks like, so people wan

i'm not saying zynga, same exact thing as zynga, period. melissa: jason, last word to you. >> the trend in mobile gaming is unstoppable. the marketplace is rewarding companies who can attract users by the droves. a la, whatsapp. >> angry birds? >> this makes sense. >> coleco vision. >> wake up and smell the candy. melissa: there is the whistle. calling it early. thanks guys so much. >> i win. melissa: well, no, actually, you didn't. turning to the latest in the disappearance of malaysian airlines flight 370 right now, u.s. officials believe the plane kept flying thousands of miles past its last confirmed location. according to "the wall street journal" transmissions from the engine show it kept running for four hours after the plane lost contact with the ground. former faa official scott brenner is back with us now. what do you think of this new information? >> well it is like every day we get some new information and then the next day we kind of tamp it down. we had kind of a big day yesterday where we had the chinese saying we have satell

>> just to be clear, i'm not writing on zynga perse.ing and stocks like zynga or the energy space is this market is expensive and investors are coming in with capital to allocate and they need to find interesting turnaround stories like zynga. , you willan execute see -- >> the stocks will go up. >> you will see a lot of cash going into those markets. >> there is no shortage of turnaround stories right now in corporate america. thank you for joining us, michael. coming up, republican senator mike crapo is a busy man. he is about to question stan fisher. first, he joins me on "in the loop." ♪ >> a 10:00, senate and king -- banking will build a question stan fischer. chief washington correspondent peter cook on a hill with the top republican on the panel, senator mike crapo. peter? >> as you said, senator mike crapo busy these days, and no one to start first with the confirmation hearing this morning for stan fischer. do you expect any confirmation problems for him? >> with the nuclear option that is been exercised by the democrats, it ma

we mentioned zynga. they had the smaller gains. they crashed and burned.his totally feels like the same situation. they are absolutely toast. they are relying on this one marketplace. >> they have adapted to mobile better. i am not supporting it, i am just merely pointing this out. charles: it has gone for low expectations. [laughter] charles: sometimes that works for a stock. >> i would call it a rock crushing ipo. it is ridiculous. $7.8 million in profit. 78% of the revenue is coming to one game. that is like throwing darts and hitting the bull's-eye one time. the rest of the time, you are missing the board entirely. charles: the example of a social media driven company. that they do have to their advantage. >> absolutely, charles. mobile is the platform that everybody needs to be on. the best place to find success these days. i certainly feel good about the core proposition. absolutely. >> you have seen one guy make this game called flappy bird. it cost him $0. charles: i hope that my son can see this. nicole: most of the ipos have been doing well. ther

liz: the power mover of the hour is zynga. it is the 7%, $5.64 a share. the gaming company adding to its 4% gain yesterday. chief executive officer don matrix spoke at morgan stanley tech conference monday announcing plans to launch pablo programs for its real money poker game in addition, checked for coming months announcing move mobile versions of the popular game, words with friends, mount gox -- zynga poker as he pushes his turnaround plan. the company has been criticized for failing to move to mobile fast enough. don't let today's action full year, the stock is down 40% over the last three years and there's the three year chart on zynga. for all of you car enthusiasts out there, here is something that will send your hearts racing. i hope adam shapiro is watching. lamborghini has unveiled its new model at the geneva international motor show. that is today. this is a big deal for member jeannie because the carmaker is only -- they make two cars. it will succeed. lamborghini -- in the automaker's line up. the car is a hit. it has won a thousand free ord

it is different to zynga in that respect.rent to some ipo's we saw at the height of the.com boom -- the height of the dotcom boom. >> for good reason. whatever it was price that last night, everyone will talk about bubble and 2000. everyone gets nostalgic about the bubble and the year 2000. here is my then and now. the guys at "business week" did a great job at this a couple of weeks ago. these of the company that went out and raised over $100 million. the profit sales ratio is much higher in 2013. >> so we have learned something. >> we seem to have learned something. 80% back in the year 2000. >> and king does make money. year 2000, hardly a great benchmark. this company was valued at the midpoint of the range. people are going to look at these companies and be a little bit more conservative. it is a massive difference between a company that produces a smartphone game and a company like google. >> are you addicted to "candy crush"? >> i was for a time in 2013. i have moved on. >> and you move to another game? >> i found bett

we watched zynga closely, it is down 50% from its ipo debut in 2011 but you see zynga down 4.3% on a day when the market is doing great, tough market conditions, the ipo is having a little bit of tough time on this day. jpmorgan and bank of america -- cheryl: we will keep our eyes on the stocks. adam: facebook on a multibillion-dollar shopping spree, joline kent has the latest developments on the social giants's first-ever hardware deal. >> not everyone is pleased with this deal including facebook investors, shares right now are actually down on the news. and $400 million in cash. it is down 4%. mark zuckerberg send a call last night, this is a long-term bet on the future of computing. and face-to-face for long distance, participating global classrooms. a lot of ideas for this. it is going mainstream. >> for the first time virtual reality works and this is something people have been imagining for so many years, 40 or 50 years, when they will put on a head set and be in the game. >> this is a great deal for him but not all developers are pleased with this deal. mine craft, the popular

. -- zynga hasas struggled. >> if you look at this business am i zynga is the model out there, maybe a cautionary tale. you have a company that has 1.9 billion dollars in sales and it is profitable. they had over $500 million in profits. their daily active users are increasing. 144 million daily. they talked about having 180 game ip's. >> what is that? >> i do not know. not 180 games but they wanted to suggest that they have a machine for creating intellectual properties. they're trying to say we are a hit maker, not a hit area do >> -- hit. search pricing affects less than 10% of trips. they say they are transparent. long blog post about this. thanks for joining us today. i have a question about search pricing in general. -- search pricing. has the company debated that haveis the right policy, they considered alternatives? >> it came out of and experimentation process. we were noticing this was almost two years ago in boston. late in night about 1 a.m., the drivers would clock off the system and the boston partygoers were opening their apps between 1 a.m. and 3 a.m. and getting no c

a few obvious differences with zynga, it's a leaner business than zynga is.nk they've only got 600 employees, compared to zynga which has at least double that. they also believe they sort of better positioned for mobile than some of these other companies. >> right. john, thanks for coming on. it's good to have you on. >> my pleasure. thanks a lot. >> which one excites you guys? spotify? anybody own pandora? >> spotify doesn't -- pandora is a $7 billion company but cumulus, $6 billion with 600 radio stations. i don't understand how you get there. but candy crush did, i believe, judge, half a billion dollars in profit on this crazy game that they got where people keep extending their play and paying to play. >> two ipos. i still think this is an area, scott, where there's an attack for content and if you've got any content people want it and this is one of those kind of names. >> he suggested that -- >> that they doint even make an ipo. >> that a facebook would have a taker out. >> right. but the whatsapp deal. >> $19 billion later they're not going to do that.

is it the next zynga? we'll ask the former ceo of the game maker zynga bought. business: do more with less with less energy. hp is helping ups do just that. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. [ banker ] sydney needed some financial guidance so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize

>> zynga to me, on valuation, is not something i would touch.nk it has had a decent run. it's not something i would be chasing into. and i would care a lot about their ability to report the same kind of numbers over the next quarter because i think they had a great quarter. >> b.k., first solar. >> i say buy it. >> what's a longer run in the world of b.k.? >> a couple of years. >> like a lifetime. >> typically the solar names will trade with oiler. oiler goes higher. with oil flat over the last several years, everybody's starting to install solar. enough bankruptcies to clear out some of the dead wood. here, you have a company that i think has a long way to go. >> tim, on solar, where do you stand? >> i'm very bullish. >> still? >> brian talks about the supply/demand evening off. but the install capacity going on in that part of the world. very big project that they're going to guarantee a lot of the supply goes through. >> does the default factor into the sector in china? >> on some level, again. let's root out the bad players. most of the bank

-- king earned twice as much but they are already seeing a down fall similar to what happened with zynga>>> and they plan to list them on the new york stock exchange not revealing any prices or the number of shares it will sell or when it will go public but they hope to raise a quarter of a billion dollars. they have losses of 169 million and a lot of companies are going public. >> that is a good sign? >> yes. >> time now 163, tracking those traffic stops in oakland, they are treated unfairly and we will tell you how city officials respond. >>> they feel special -- i feel special and i am not alone. >>> a little girl and a friendship like no other, why this little girl was kicked out of school for supporting her friend's fight with cancer. . >>> well company back, most of them involved oakland americans. the makeup is 62% of police stops between last april and november, despite the fact that they make up to 28% of oakland's population. the report needs further analysis and it is not evidence of racial profiling. >>> the city of oakland may impose restrictions on the collection boxes wher

. >> i am wondering is it zynga 2? it was a very successful ipo and then knelt down. next we will be speaking with street skating champion chris call. he has got some big compliments. >> major accomplishments. a lot of success and very interesting work life balance. try to keep his family intact and interaction with his family when he is hitting the road doing what he does. >> not so easy to do and he has been doing it for a long time. we will be meeting to cofounders who are turning fitness into a game. >> everything is a game now. you do not get rewarded for working out unless you get points. i do not know -- if you need this reward to do this workout that you will do anyway. >> can we just work out? >> other than endorphins. >> that will come up over the next 60 minutes here on "taking stock." >> there is a fight between dan lowe and sotheby's. sotheby's responded saying its adoption of the shareholder rights plan is valid and legal. to be continued. bitcoin is a property not a currency. the u.s. government tax agency announced it will treat bitcoin as property for

. >> zynga was a big growth platform. do you think when they see oculus, they are seeing google glass? >> yes. i don't see them spending $2 billion straight up for a gaming platform. i think this is one-upsmanship. >> you think it is defensive? >> i do. i think it is a great win. it is a fantastic venture deal for the early stage investors. >> we are going to be talking more about gaming coming up. also, peter fenton of benchmark will be joining us next. ♪ >> startup megadeals are happening. other startups are raising mega-rounds of funding. private hedge funds and mutual funds are pouring money into silicon valley at an unprecedented late. the latest example is blackrock, giving a $100 million investment in hortonworks. peter fenton joins us in the studio. jon erlichman is with us from l.a. the mega-rounds of funding, there have been 11 nine-figure rounds this year. when it comes to hortonworks, how did you come to the decision to raise more money as opposed to going public? >> we have a response ability on the board to

here is the thing that and grew mobile, also in the -- the zynga both also down, today. west" with emily chang is coming up. ♪ >> live from san francisco, welcome to "bloomberg west," i am emily chang. startsrush maker king trading the shares are getting crushed, we will look into why investors are having reservations about the ipo. his firm was one of the main companys in oculus, the facebook is buying for $2 billion. spark capital founder santo politi will be joining us.

it would be significantly cheaper than others, like zynga and china interactive.irst, our lead story of the day. cory johnson is here with me in the studio. fox revealed its filing for its ipo. it had filed secretly under the jobs act. we have gotten a lot of numbers about sales, marketing revenue, $125 million over the last year. to $171 million in the same time, also posting a big net loss of $168 million. both the loss and the marketing numbers are bigger than the actual sales numbers. >> first of all, the way the company looks at things, the way that it values itself, reading the filings there is great detail on how they value the stock options they gave employees. and they talk a lot about sales growth and sales growth numbers. the growth numbers look pretty good. last quarter they had 39 million in the quarter. steadily growing. that said, the rate of growth, the revenue growth rate, that is slowing down. do think that sequential is the right way to look at this. not year-over-year. principally it is a business where not every account days for two years wort

and that other stock, that -- zynga crashed and burned.l: it reminds you, of the frogy nature of that. -- frothy nature of this, what's app fetchs a huge price tag, it gives you a sense, done we do this before, are we doing it again. do you worry about that? >> it gives me the willies, this reminds me of 99, and 2006, last week a company, came public with a billion dollar market cap, $13 million in sales, last few weeks a few biotechs came public with zero sales, this is what leads to a diso disaster, bad news and news, bad news will be some of the stocks will be down 80%, and good news that ipo bear out great stocks down the road in 90s you never heard of an ebay or american on-line, and 2000s who knew wha what a googls or a facebook. neil: you were shaking your head through that? >> this is not 1999. there are great companies, selling at reasonable p/es, world is growing faster something like 7 mist million 750 million middle class families in 20 years, they will use computers and cars, the large caps are not getting frothy. >> i was all

zynga is up 3%. [closing bell ringing] david: certain sectors really popping.nes doing really well. people said i have the winter fatigue. i don't care if the plane is not on time i want to go down south! peltz ringing on wall street. as i mentioned before, not a lost conviction. we've had slower days. there was volume today. just wasn't as forceful as a lot of people would have liked. look at russell two thousand. we have a debate coming up, cheryl. you talked about it before. people that believe in the warren buffett view of the big caps stocks or whether people believe in the russell 2000. what will do better over the long haul? we're talking about a 10-year period. >> i was loose looking at some of the sectors moving today. health care was loser yesterday, david, and big winner. david: true. some biotech sectors came back as well. we have got a debate on that as well. a lot of people thinking biotech was a bubble. we have p

does anybody remember zynga? its farmville game was all the rage when it went public back in 2011 and now zynga's stock is half what it was then but the beat goes on. facebook buys online messaging service what's that for $19 billion. a 23-year-old kid passes up selling his company snapchat for $3 billion because he thinks he can get 10. i'm told it's a new day. i'm told it's a new paradigm, that it's not about profits. it's all about promise. you know, maybe i'm just an idiot. don't any of you chime in, but i swear i've heard that one before. it was early 2000 in the middle of a boom, and there was this rage with all the dotcoms until in an instant they were dotgones. now i'm not saying that this game is all that, but, man oh, man, 8 million bucks, that's not candy, that's cocaine. we're on it, and tonight we're picking it apart. the contrarian view on the mainstream view, and that health care law, too. good night. >> hello, everyone. i'm andrea tan tarz along with bob beckel, eric bowling, greg gutfeld and dano

companies. >> look at the two-year zynga chart.to bet on farmville, did you? star of the show attraction, one of them has doubled -- he had some interesting metrics showing user growth. one of the games had more than doubled from 9 million to 20 million. maybe we'll start to see more diversification there. but again, an incredible concentration at this point. >> i sincerely hope somebody comes up with something better than these games for mobile. mobile is the future, right? you try to give them -- you try to give your kids a big screen tv when you are moving into the house and they don't want it. >> i was stunned. they're on their tablets and mobile devices. >> and playing games a lot, i assume. >> yes, but they can do all of someone else on their laptop. that is just the way they get their information. to me, maybe i'm a little too old school, but it's hard for me to see how these types of ideas work in a market that is less frothy than the market we are in now. >> fortunately for them, were not in an un-frothy market. but there

escape and zynga poker and new words with friends. will be available in the next couple months. >> twitter employees will soon be eating at historic log cabins. the firm keeping with the desteiner's interior will install cabins from the late 180s. the buildings which bear the ranchers mark will serve as dining rooms at twitter's new place. and merchandise mart on market street. pretty cool. >> interesting. >> let's check in with christina. 5:55. >> you know, these days scott and peggy, people wonder do i need to grab that umbrella before i leave. the answer today is yes indeed, you do, all no, we're not expecting heavy showers. we'll see spotty activity. you don't want to get automatic offguard. you'll probably use your wipers from time to time. overall mostly dry. as we head throughout the next couple days, the heavier steadier rainfall returns to the forecast. we're going to dive into that. mid-60s headed your way for most ever the bay area. here is mike and the morning drive. >> looking at this glowing line here on the map. we take

shares of zynga backup 4%. mark pinkus making money back, 85 million shares.e $50 million today. the 12-year-old girl scout, set a new record, at 18,100 boxes. they spent the winter selling cookies to everyone she runs into dedicating free time after school, 13 hours on weekends and she is not stopping. 20,000 boxes by april, and 100,000 by the time the girl scout days are a. i am hoping this is a relative of mine. not making money nearly as fast as he hoped, the piano man himself, billy joel is still on the market even though he lost the price by $600,000 to $22 million. fingers crossed for you. it may be worth more than hayek but huge hidden liabilities shacking up with air b&b. the risks threaten the $10 billion valuation. here is jason clampett who has reported on the company. and legal analyst lis wiehl. jason, let me start with you. we did a segment last week, everyone so excited about air b&b but they're raising questions about legal overhead. what are their biggest problems? >> it is a fascinating company. they have moved quickly and grown so fast but

they made some missteps in tying themselves so closely to hsing-hsising zynga in the past. that was seen as a mistake for both companies. i don't see them going as deep into gaming. i don't think the oculus play is about gaming. but i mean, i think gaming is always going to be part of facebook. just because it's just such a great platform for it. >> want to go out to josh lipton, who has been reporting on oculus in the past. josh, what's your take of this acquisition? >> i think it's interesting, melissa, just because there is tremendous momentum right now in virtual technology. that's a technology that made headlines in the early 1990s, never really got a lot of traction. you talk to analysts now and they say the difference is the hardware's caught up. the technology has caught up. last week, when i was at the game developers conference in san francisco, sony let me try out their new virtual reality headset, that was project morpheus. that was just a prototype. i'm not a gamer. when you try the technology out, it was immersive. it was 3d, 360-degree experience. and i heard

he bought a big stake, 5.3% stake, in zynga. is trading as you can see, a little bit after-hours. this is according to reuters now. we haven't confirmed it independently but a 5.3% stake is not small matter. so we'll be watching what happens with that stock. back to susan now, actually 5% is an interesting number because the sec sort of uses that as the benchmark. if you go above 5%, you have to fulfill all kind of disclosure requirements that you don't if you have less than 5%. and the interesting point about that is because george soros's shares of herbalife chimed in at what, 4.9%? >> exactly. david: just below that disclosure point. >> that is exactly right. one. issues, you know, potentially that the sec would be looking at would be when he went and talked to these other investors and apparently, ackman's lawyers said that he was, this soros guy was urging his friend to go long as well. david: but, 49-point%, it didn't matter because he didn't have to disclose all that right? -- 4.9%. >> he didn't have to but he diddies clo

$5 million already has been committed, that money coming from companies like job own, linkedin and zyngawanted to mention all of those as they already committed to the project. katie marzullo, abc 7 news. >>> still to come, a scene that frightened beachgoers in florida after a pregnant mother drives right into the ocean with a van loaded with children. this morning, the charges just filed against her. >>> and an eyewitness captures a blind man's brush with death, right under a train coming his way. >>> and how about a live look outside on this beautiful day. checking out the embarcadero, san francisco, looking at the bay bridge, gorgeous shot and it is going to be warm. we'll talk to mike nicco about your forecast coming up. >>> welcome back. now to the crisis in ukraine. this morning, ethnic minorities in crimea who fear living under russian control are urging the international community to step in and stop a vote to break away from ukraine and join the russian federation. that vote is scheduled for march 16th, nine days from now. russia's president is not backing down despite a one-hou

the new games are farmville ii, zynga, poker and words with friends. >>> jack war is planning to rollsports sedan to compete with the bmw 3 series and mercedes-benz c-class. the new jaguar is expected to arrive in europe next year and make its debut in the u.s. by 2016. >>> intel buying smart watchmaker basis science between 100 million and $150 million according to reports. [buzzer] google, apple, microsoft and samsung were also interested in buying the company. david. david: that's all right. intel is important to mention. remember tomorrow -- sandra: all great stories. david: tomorrow you will see the ceo of intel right here. liz has interview with him. 3:00 hour. through to 4:00 hour eastern time. markets recovered, crisis in ukraine remains tense. war of words between russia's president vladmir putin and secretary of state john kerry. he visited kiev and strongly criticized russia. sandra: with us from kiev is fox news's amy kellogg. amy? >> hi sandra, hi david. yes an awful lot of words today, and strong words from secretary of state john kerry here in kiev and president vladmir

he's doubling his stake in zynga. and that shock is higher in the after-hours. >> thank you, sheila. >> i think the problem, caesar has enough problems right now. if you're looking in the casino space, there's better names that can outperform, whether it's mgm or wynn. all of those have exposure to the asian markets, as well as las vegas. >>> coming up next, mike mayer, dropping a citigroup bombshell. and the impact on citi shareholders. >>> plus, the social snapback. all rallying back into the close, but with a lockup looming and earnings around the corner, and earnings around the corner, is the rally short-term? but way too many aren't. some brokerage firms are why? because selling their funds makes them more money. which makes you wonder. isn't that a conflict? search "proprietary mutual funds". yikes!! then go to e*trade. we've got over 8,000 mutual funds and not one of them has our name on it. we're in the business of finding the right investments for you. e*trade. less for us, more for you. the fund's prospectus

zynga is a game company that went from 16 down to 2 but it has bounced back up to 5.ing companiesi don't know. technology is changing so fast and this is all going to the cloud. i'm not a believer. scott: it's only what it's worth right now today and if that's the valuation and they're able to raise cash on that numberthat's what it is. me for the long termi wouldn't touch it. alan: are you a gamer? scott: i wouldn't touch it with a 10 foot pole. i agree with youthey change in a heartbeat. i'd stay away. what's going to be the next one? i don't know. alan: is it like a tesla or is it something like a momentum stock? i don't know but a lot of danger, danger. angie: here's a fun gamethe bonus round for st. patty's day. how much will americans spend celebrating? 2 billion, 3 billion, or 5 billion? alan: it's got to be the highest number. does that include beer? angie: it does. alan: 5. angie: it is. it's actually 5 billion. good job alan. first business continues right after this. hi, i'm ben affleck, and many actors have played the part of u.s. servicemen in the movies,

companies like zynga that have tried to bring too many outings to the market.hey find they have a hard time doing that, as they cannot repeat the same success. the way a modern channels of distribution or, they put a bright spotlight -- work, they put a bright spotlight on a smaller number of products. >> they do. when you're developing the games, and you develop through digital chocolate and on the educational front. how do you cut through the noise? my new company, if you somethingre making that is in a unique space helping children learn social and emotional skills. it is a new area. >> but gaming is antisocial. >> it is both ways. it is like real life in that regard. store we are the only game that teaches children's social and emotional skills. if word gets around, people will find it. it is a change in the business model in the way people are looking for things and being able to try them for free. >> trip hawkins, founder of ea the3do, my guest host for hour. we'll be back on how much it will cost banks to them, and the volcker rule -- implement double dr