Transcripts For FBC Varney Company 20131107

For reelection and they face defending obamacare in their campaigns. Tough. The cancer patient who the wall street journal oped piece sparked a firestorm the white house called it absurd. Speaking of absurd the national joke on obamacare has come to this. Hey, do you have that obamacare . Obamacare, whats that . Whats that . Oh, its great. Its great. What is it . I started signing up last thursday and im almost done. With fidelitys guaraned onesecond trade execution, we route your order to up to 75 maet centersrs to look for the best possible price mae even better than you expected. Its all part of our goal to execute your trade inn. Iderrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason rious investors are choosing fidelity. Now get 200 free trades when you open an account. Help the gulf when we made recover and learn the gulf, bp from what happened so we cod be a better, safer. I can tell you safety is at the heart of everything weo. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over a drilling activity twenturseven. And were sharing what weve learned, so we can all oduce energy more safely. Our commitment has never been stronger. Twit pricing at 26 a share. That means big bucks for the founder and ceo before they start trading. Take a look at this, coounder jack dorsey has 23 million a share and that puts it at 610 million. Cofounder evan million has 57 million shares and his stake is worth 1 1 2 billion dollars, 1. 48 and the ceo Dick Costello has 200 million. And well update these live at the stock moves, have a lot of fun and live vicariously through the twitter millionaires and billionaires. Guess what, its not just twitter making headlines. Obamacare disaster continues to roll onment new documents reveal that the website, the Exchange Website was only able to handle 1100 users the day before it launched and it launched anyway. The new numbers from fox news so much more of you keeping your coverage if you like your plan, so much for that. 4. 2 million americans losing their coverage at least their current insurance. More cancellations are expected and remember the wall street journal story about the cancer survivor who lost coverage because of obamacare . She appeared on kelly file last night and here is what she had to say when she was asked about the white house who tried to debunk her story. Thats absurd, and frankly, its condescending because its not true. And you know, i feel like im a loser in this because ive lost my medical insurance and ive lost and potential to lose my doctors, that really, i think the biggest loser here is trust and respect for government, trust and respect for our leaders. Charles speaking of that, democrats are obviously getting worried. 16 senators up for reelection next year met at the white house and it was an unscheduled meeting yesterday that lasted two hours, thats an eternity in washington. Clearly theyre worried about obamacare. Charles straight to the bell and twitter. Theyre next. [ male announcer ] what if Small Company became big biness overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the fute of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. A moment like this, some people wait a lifetime for a moment like this listen it, it hasnt begun trading, but twitter is the ipo of the year and it will be trading here shortly. Were going to be all over it. The opening bell is going to ring shortly. Twitter has the news and the contingent there is actually going to get a chance to ring the opening bell, but ive got to tell you guys, the market is up because of surprising news out of europe. The ecb, European Central bank, they cant go lower, theyre worried about deflation, but the good news for investors and Stuart Varney would like this point, money pumping around the world does not hurt stocks, in fact, the dow belling ringing will start at another alltime high and lets check the big board right now and see what comes out the gate. Up 4 points, that probably will be up 50 very, very shortly, but the bigger news, at least for stock junkies, right . Weve assembled a twitter allstar panel who are going to this is going to be a big opening for these guys. Tons of excitement around the stock and i cant wait to see them ring that bell this morning. Charles you love the company as a technology guy. You just love the company and the bells and whistles and the potential of it. Is there any chance that the stock could be at such a meteoric rise even youll be and i think today is a big indicator, obviously the stock has grown in valuation over the past couple weeks, now, youre seeing the stock open at 26 or being priced at 26 last night. So, some people are a little bit freaked out about that, but at the same time, i look at compareables like yelp. Yelp was not profitable when they opened the ipo. The people behind the company has seen a nice rise and i think that twitter has a hugement an of potential ahead. And theyve staated to monetize the platform. Theyll do over a billion next year and im incredibly bullish. Charles on the screen youre looking at the barclays pit where twitter is going to be opening. And not everybody is bullish, in fact, keith, youre a bear on twitter, right . Yeah, you know, you keep using the word potential. This remembers me party like its 1999. And the revenues are going in the wrong direction, user base is small. You have no idea how they are he a going to make a profit. Potential is not good enough for me as an investor, i want real profits and investors to know what theyre going to do. Maybe its going to run up, but risk tolerance, uhuh. Charles arent you sort of, arent you grappling here, keith . Your job is to help people make money in the stock market. Maybe the logical side says you want more, but isnt there a part that say it might be a gigantic stock gain to the upside . Im so negative on it and thats the first law of investing. Wait, wait, keith, how can you talk about this stock . How often are you actually tweeting . Do you actually even use twitter . You know, its like somebody. No. Saying that starbucks is overpriced because they dont drink starbucks and rather buy mcdonalds coffee. Youve got to use the product. Charles let keith come in and i want emack in on this. Youre looking at the numbers and saying it doesnt add up . Look if you talk potential its one thing. If you talk about classic business acumen which is the way that Value Investing is done and longterm value perspective is what you need her. If you look at the longterm trend, theres no profits, no way to make money, the user base is too small to install the advertisers. Stuart hold on, ive got knower skeptic on the set. Youre skeptical as well . Yes, this stock will pop in a moment of euphoria and be in the air pocket of euphoria and here is the deal can and the problem im calling it Attention Span. They can sell in a limited frame in 140 character tweets, so as not to allow their users, do it in a short Attention Span of users versus what facebook and google command out in the marketplace. Its really tough to be. And also the plan is to tweet ads to their users. Big brands tell you you do not want to annoy your consumers. Theres a fine line there. A fifth of the users versus facebook and 50 higher valuation versus hold on a second, ted, a lot of experts want to weigh in on this. Ive got to get right down to nicole because shes at the heart of the action. Nicole, its going to be a huge, busy morning for you. Nicole its a busy morning and talking to traders all morning. Moments ago, right now around were hearing 35. Of course its a 26 ipo and youre looking around 35. The obvious is its looking higher. Charles youre saying out of the gate the first pick maybe 30, 35 . I would say and you know, charles, as well as i do these numbers change constantly as the orders start to come in over the next hour or so. However, that being said, the most obvious is look, this 26 ipo must have opinion been priced right. 30 to 35, might go higher than that. Right now were hearing 35. Charles ive got to go back to ted. Ted, you had problems with some of the things that keith brought up . The hash tag should be marketing powerhouse. What they have is gold. No way. Every single advertiser is clamoring over this thing. If you watch this show every single one is clamoring . Every single one, really . They are. All the big advertisers are included hash tags. Watch the super bowl, right, in january. Everybodys going to be saying, follow us on twitter, use this hashtag. Were talking selling ads directly to the twitter users, thats the debate. Its also about engagement, what twitter has, they have control over a platform. Theyre not limited to 140 characters. They have the ability to do whatever they want. This stock price with the fundamentals and any unconstructed one will tell you weve got to bring in joling kent. What are people saying on twitter right now . The hashtag is about ring, and tweeting about the opening bell. Interestingly, there was no executive on top of the podium there ringing the bell at nyse this morning. Taking a look at who exactly it was, sir patrick stewart, the actor, vivian hart, an activist, a young kid, wearing a tutu and shes an activist against child slavery and included a member of the boston police. And there are questions how high will it go and how much people should buy it on its interesting you brought that up. Its a fantastic point. Do you think that twitter is saying to the world, listen, maybe somehow answering questions now theyre going to make money and the impact they have on our daytoday lives by having such an eclectic mixup there . Everyone can use twitter please sign up, they want people engaged. A couple of days ago they launched a twitter explainer, a discover page showing what a tweet is, what it does, how it looks, what does it do . How can you follow your friends or famous people. A lot of different dynamics in a last minute pitch by the public, we can launch money and do well. I spoke to the author of twitter, spent hundreds of thousands with the executives and they are looking for strong partnerships in old media and new media could get themselves sustainable and get that revenue up. Charles and twitter is not the only thing going on today. Whole foods made 3 billion and wall street is not happy. The grocery chain lowered its Sales Forecast and its stock is taking a pretty big hit. And walt disney shares are up right now and costco, customers there spent more money than expected in october and those shares are trading higher. Lets take a look at amc networks, because we talk about media all the time. And one of the big media stories this year is breaking bad and that finale was a gigantic boost for the profits. The sales are up. And the stocks are down because expectations were that enormous and maybe we should i dont know if we have it on death watch, but people may, and might be premature. J. C. Penney reported the sales gains in two years, lets go to nicole. Nicole right now its up about 6 , good news for j. C. Penney, when you start to see the gains in the latest months of sale. And its something. And as you noted the first gain in two years, year to date its down over 60 . On twitter one trader walked by and look at 30, 35 still . He said, yeah, around there, 35 is still where its sitting right now bye i said what do you think . I said higher . He said, oh, yeah, probably higher than 35. He came out of the crowd. Yyure seeing the demand for twitter not likely to open for at least a half hour minimum. Charles you can feel it in the air. Its palpable. And the big board. I thought the dow would pen at high as 50, but its at 30, 35 area. Which is interesting, a lot of excitement about the ecb. Our gdp number came in much higher than expected so that takes away the idea that maybe our Federal Reserve can be accommodative indefinitely. Weve got two things going on. Ecb changing the game, but our gdp number better than expected. So much for that Government Shutdown wrecking the economy. The twitter ipo hype machine is on full blast next. Much more on twitter and with our allstar team and well bring in guys who help a lot of companies, a lot of Tech Companies and the public and want to get their opinion on whats going on here. Stand by, iis going to be a big morning. Come fly with me, lets float down to the roof announcer where can an investor be a name and noa number . Scotade. Ron im never alone with scottrade. I can always call stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows actly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. But with less energy, moodiness, and a low sex drivily first. I saw my doctor. A blood test showed it was low testosrone, not age. Talked about axiron. The only underarm low t treatment that can restore t levels to al in about 2 weeks in most men. 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Giving some traction here and mentioning the gdp number better than expected and the consumer part, the spending part was extraordinarily week and the money printing crowd, the broad market moving higher. Stuart time now for the morning gold report. The gold is down and 1300, the key support number is 1308 right now. Now, you know, lets just look at obamacare. 16 Senate Democrats met with president obama yesterday in whats called a crisis meeting. The democrats are very worried about defending this mess of a law as they run for reelection. You know, emack, i think that the big thing was how tight that virginia race was. It was obvious that obamacare almost killed, took snatched defeat from the jaws of victory and a lot of people are worri worried. People from their home states are seeing policies canceled and the president with Top Democrats there. Big names there, al franklin, rick durbin and Mary Franklin from louisiana and we have Democratic Senators putting out statements, listen, mr. President , youve got to get up to speed on this. The apologies, there are no apologies. Theres no accountability, and youve got to basically listen to the American People and listen to the voters who we face, the wrath of the voters are coming in the mid term. Charles and the gallup approval. And hes giddy. And i know youre involved with 9 ipos and youve got that on your resume, walk us through whats happening because everybody is excited about this. I was involved with Morgan Stanley moving companies through the ipo process. I wasnt an investment banker, but representing the company through the process. Whats happening behind the scenes is this. About 10 of shares went to retail clients. 90 went to institutions. Institutions really drive the ipo market. And that 10 that went to individuals, they are hoping that this stock opens up, a the least 20 above the ipo price, which it looks like its going to. Whats going to happen at that point, the lockup will come off. I said lockup, its not written anywhere, but every advisor is advising their client to stay in that stock until they break out of that 20 range, and they want to go back to twitter and go back to Goldman Sachs if they dont work at goldmannand say look, we held onto a lot of shares, were a good place to come to next time. And youll tell the investor, hey, if you sell this, you wont get any of the next hot ipos and for the most part the investors are going to play the game. What if it opens up 100 higher. Then what . Everyone can sell, its a big party and nobody cares. Brokers are calling up and saying look what i did for you, bring me rest of your money because a lot of brokers are using this to develop new business and theyre making the phone call, would you like shares of twitter, let me put you in for a thousand and they might have gotten 300, what a good broker i am. They got shares and went up, and it could happen the other way, so youve got to be careful. Believe me facebook is ringing behind is on the back of everyones mind. Keith fitzgerald, okay, a lot of people respect you and waach you. The stock opens up is the 35 and end of the day 60. And you get phone calls and email, man, i could have bought it at the first tick, 35. What do you tell people. Charles no, they say they didnt do it because they listened to you and now theyre upset . You know what . So what . If im a luddite, im a luddite. There are certain stocks for individuals listen, in all seriousness, right . Here is the thing, any stock, i dont care what business youre in, depends on your individual risk tolerance and investment objectives. As an investor this thing fits very few peoples actual intellectual investment objectives. Do you want x percent, a dividend . This stock is pie in the sky, based on nothing, but potential. If it goes to 1,000 and im going to turn around to my clients and say now weve got stability and lets get back down to business. Charles okay, now, ted. And what you said. I want to what you first said. Keith mentioned hes a luddite. In the hype days, 1990s we heard a new paradigm and the luddites were right about thh internet boom and burst, and a lot of them havent recovered and keith is making good points there, ted . But you have to look at the internet now versus where it was then. People didnt understand how to monetize the internet, didnt understand how it to get advertisers on board. Twitter knows how to monetize. They may not have hit the billion dollar mark yet, but they know what they need to do to execute and the Media Properties out there are just bolstering that, theyre all promoting twitter constantly. Charles okay. You cant buy that type of promotion. Charles theres no doubt theres been a steep learning curve. I want to get back to you, and right now on the bottom of the screen, new indications, the stock 40 44. And thats pretty exciting stuff. What do you think, ed, from your experience with the kind of momentum were seeing before it starts trading. Is there a limit to where this can go today . Theres no limit. And i completely support what keith is saying, as an advertiser, its tough to tell a client to buy a company that has mow profit. On the flip side theres a lot of potential, as an advertiser, that stock opens up at 44 and you know what, i cant tell you what its going to do. Its like a loose wire going back and forth. Its obviously you read Dale Carnegie how to make friends because youre on both sides of the argument. Well wrap it up. And people are watching and waiting for twitter to start trading and in the meantime well play you lights from last nights cmas. Youre going to want to see more of this after the break. Hey, do you have that obamacare . Obamacare, whats that . Whats that . Oh, its great. Great . Great. What is it . I started signing up last thursday and im almost done. Rusters at 30 i cant get her to warp. Losing thrusters. I need more power. Give me more power [ mainframe ] located. Ge deepsea fuel technology. A 50,000pound, ingenusly wired machine that optimizes raw data to help safely discover and maximize rources in extreme contions. Our Current Situation seems ratr extreme. Why cant we maximize our. Ready brilliant. Lets get out of here. Wa speed. Take a listen to the Country Music awards host Carrie Underwood and brad paisley in nashville taking a job at obamacare. Why is it spinning. It does that. Why is it smoking . I dont maybe, maybe we should restart it . Obamacare by morning why is this taking so long whats it taking so long and having fun, everyone is having fun with this spinning. Spoofing the George Strait song amarillo by morning. And its interesting, hes the one mocking it in the funny spoof, trying to get on the healthcare. Gov website. Charles saturday night live almost every weekend come up with better and better stuff. Its n unmitigated disaster, although we can make fun of it, theres a sad serious side of it. Thank you. It should happen any minute, twitter will start trading, the new range 4246, thats all coming next. [man]ask me. [announcer]. Every wish for a bed that could feel perfect under every part of your body. [man]ask me about our tempurpedic. [announcer] theyre sleeping on the newest tempurpedic bed. The new tempur choice. [man]two remotes. [announcer] firmness settings for the head,legs,and back. These real owners get that famous tempurpedic comfort how they like it. [woman]ask me about the lumbar button. [man]lumbar button [woman]lumbar [announcer] tempurpedic. The most highly recommended bed in america. Now the fun begins opportunities arent always obvious. Sometimes they j. Cme group can help you navigate risks and capture opportunities. We enable you to reach obal markets and drive foforward with broade. Cme group how the world advances. Well, it can happen at any moment. Twitter shares are about to start trading, we have every angle of the story covered for you. And take a look at the allstar team. Liz macdonald, fox news. Com tech editor and joling kent monitoring the buzz on twitter among other things. And Nicole Petallides at the stocks exchange. Stuart ed butowsky money manager to the rich and taken companies to ipos himself and ted has taken companies right to twitter. And nicole is at the heart of the action. Whats happening at the New York Stock Exchange. Nicole steps behind me is the trading pit and traders give me the updates and im seeing and hearing it right now its between 44 and 45. And that changes. And of course this was a 26 ipo and already has been raised from 17 to range and so the action continues and its likely to open within this hour, but they have to settle all of these orders and they continue to come in. Obviously, the demand remains intense. Charles intense may be an understatement. Thanks a lot. I want to go to jeremy kaplin, are a he bearish on twitter . When it comes to technology, i didnt think youd be bearish on anything . Extremely enthusiastic, i Love Technology and let me get this clear, i love twitter, its fascinating, but its a game changer how we talk and communicate as a society, but as a business it doesnt seem like a very good one. You tell me where are the valuationsscoming from . Its like wall street is in a feeding frenzy over this. Theyre eager to sink their teeth in for a weird reason. At the stock price 4445. Youre taking a fifth of the users that facebook has, the daily active users, 100 million at twitter. This is watercooler, the ipo. Theyve got to prove they can have these, and when you annoy your users. Charles i heard that one before thats why i cant crackup. The chicken feed one. Charles and the jumping in front of a steamroller to get a penny. But a lot of people are jumping in front of a steam roller on this one. Where do you think the disconnect is . Why is there so much hype . Could some say, you can argue that, amazon doesnt make a lot of money visavis its valuation, google is cool, but a lot of people didnt know how it could make that much money and now its a 1,000 stock. Hold on there, google and amazon make a lot of money. To justify the share price . Thats the finances and thats a question for you. Those two Companies Make an awful lot of money. Twitter doesnt. Charles can it make money . We have to point out small float similar to the linkedin ipo. Charles thats another great poiit. They didnt put a lot of shares out there weve got the classic supply and demand thing and its skewed to go higher. Linked in ipo 45, went on to about 270 a share not a bad deal for anybody who got involved. You bought it on the first day when it closed at 100 and held it for a year, you doubled your money. Is twitter as indispensible to users as facebook is. Charles thats what were asking you. Its not. Charles its not . Facebook was a game changer. It let you do things you couldnt do before. All of a sudden youre in touch with College Buddies they moved to wichita and tahiti, there they are. Charles if someone flows a molotov cocktail at the headquarters in china this second, how will we find out about it one minute from now . Thats one small way that twitter changed society and for the best and in important and profound way, yes, its true. Thats a twitable argument. And the ones who want the twitter headlines. Charles did i hear ted chime in, go ahead, jeremy. Youre right, its a great way to get across information, rapidly, quickly, especially in an emergency, a volcano, bombing, somebody gets killed and we get the information and turn to twitter and at the end of the day we go home and back on facebook and google and ignore twitter. Charles so, ted, we lost one luddite and we have two more. Help them out and show them the light. Oh, my gosh, guys, every single thing that youre consuming in the media world is driven by a hashtag. All of these realtime events theyre all hashtagdriven. So the Media Companies are embracing twitter and its the way that we consume realtime information. Everything in your facebook feed, its delayed. Facebook is determining what you see. Theyre arranging things in different ways, but twitter is ted, listen, people stay on facebook longer. Thats the advertising argument for facebook, that you couldd sell ads because people stay in facebook longer than just reading a headline on twitter. It doesnt matter. You know what . You can still drive people directly with twitter, right . So putting an ad in that twitter feed and then driving someone to a destination website, downloading apps, thats incredibly powerful for advertising. And the other point about that, takeea look at katy perry, the most popular person on twitter 46. 7 million followers i checked it and im sure twitter is making a lot of money selling that account to here her, right . How many are active users. Charles right now were told, hold on a second, an update to the audience, everything is running smoothly at the nyse, that this looks like its going to go off without a hitch. The new parameters, 45 to 46. I want to go to joling kent. Youre on twitter and what are people saying about twitter . Its a good mix, okay, is this going to be something we stick with for the longterm or is this something that is something we should skip altogether . Obviously, twitter is the hype machine for twitter though. You search the twitter ipo hashtag its a lot of tweets from media organizations that are covering twitter and from twitter itself. Employees from inside twitter headquarters. If you step out at twitter and look at google, not everyone cares about twitter right now, its only the number 6th hottest search trend. So looking at whats real and whats hot, twitter isnt necessarily the top of everyones minds right now. We have a great picture to show you of jack stewart, with one of the free three users that rang the opening bell. If you take a look at jack dorsey with vivian young, activist and she owes a lot of her success to campaigning against child slavely to twitter. Twitter is trying to spin it like this, spin it to the users and get people logged on and use it. Charles theres no doubt that twitter changed lives. Ive been tweeting all morning and some things i cant say on the air. Joining us now from san franciscos cloud ceo. Joe, you take peoples twitter feeds and facebook stuff and wikipedi wikipedia, you take all of these and rank them 1 to 100. Tell us how important is twitter and is all of this hype justified in your mind . Absolutely. And what is ceiling our growth is advertises interest in twitter. They want consumers to talk about our products broadly across social media. Twitter is a big driver and top of mind worldwide. I was in japan last week and it was the number one question was about twitter. Charles and business, from a business perspective people are saying, well, monetization. We know its revolutionary, we know that its changed lives and its an important part of our news feed and people watch it while watching television. Its certain things that if you cant even dispute the impact its had on society, but how do you make money from it . Yeah, i think theyre doing a good job balancing growth and User Engagement with giving advertisers a taste of the power of twitter. Theyve just started experimenting with monization, and adam binge who runs that there, is a smart guy, been in the industry a long time and i have no doubt about their ability to monetize long run and i think theyre smart how they balance mid term monetization goals to users and advertisers. Charles i think theyve been smart about the structure of the deal. Emack brought up a great point. Small flow, insiders arent dumping stock, there arent two dual classes of stock, but were talking ed butowsky, 4546 a share and youve got ideas and itching to sell. How does it investment banker stop me from selling at 46. Nobodys going to stop me from selling now. Anybody who has shares, the question you have to ask yourself is would i buy this at 45 . Would i buy a company that today has no profit although i think the stock goes a lot higher over the next two, three years, but as of right now, would i go put whatever money i have in it right now . If the answer is no, sell the shares, no one is forcing you to hang onto it. Charles im looking at different businesses, open table, yelp, and facebook unchanged for the day. Are we seeing a certain pool of money allocated for this. Theyre going out of the other ones and maybe one of the reasons this stock is looking up so much . I dont think thats how investors look at it. I think investors look at whats going to make money and make money in the future. Twitter is not valued oo profitability, its valued on usability. And when ted says something i shake my head yes, this is a revolutionary way to deliver advertising messages and hasnt been developed. It reminds me of an 8th grade basketball player, a phenom great down the road. Theyre just not great now, but youre going to nurture it and eventually have a allstar in the nba. Let me go back to Joe Fernandez. You heard the analogy, is that a smart analogy or is my friend in dallas underestimating that company . No, i think the idea that twitter is that 8th grade superstar who is going to blossom is right on. If you can get in at a price and feel Comfortable Holding for that longterm growth then youre probably in a great position and again, from what we hear on the market and were looking across all of the social networks, is brands are very, very interested in being involved in twitter. Twitters judgment on how open they want to make that funnel for the brand. Hold on one second because any minute twitter will start trading and making instant millionaires, it gives a voice to a lot of people, particularly oppressed people around the world. Freedom of speech, 140 characters at a time. All rise, the judge is next. This magic moment you really love, what would you do . [ woman ] id be wter. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. Wt if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . Bounce keeps my clothes fresh for week en when theyve been sitting in the drawer a long time. Like those jeans you cant fit into anymore. By that, i mean [ malennouncer ] how do you get your bounce . Longlasting freshness. All right were back with our allstar twitter team. The market is flat to slightly down right now. I want to bring in the judge. Judge napitano, what i want to talk to you about, gets your thoughts on these twitterrelated stories. Weve got a couple. Country singer brad paisley he and his wife received a message from a woman and said her daughter had cancer. They sang Amazing Grace on the phone. And girl never existed, but mostly his singing was worth something so they said she stole something. Were opening up a whole new realm of legal challenges because of twitter and social media . Well, it was a form of fraud, but fraud usually involves somebody losing something. I dont know that brad lost anything by giving the song, other than maybe a little faith because he was singing to a person that didnt exist. This is a form of fraud. In my view its not jail time that this woman obviously needed help. No doubt about it. And she has a disorder where you want people to feel story for them. She wouldnt get along around here. [laughter] but look, twitter is the new main street. It is the new marketplace of ideas and from my perspective, one of the beauties, its essentially unregulated. Anybody can say anything. Now, where anybody can say anything, there are going to be some fraudsters, this is a very, very low level of fraud because they didnt take money or reputation away from this. But people can do that on twitter . Sure, if she had said this is my dying daughter and we have a 50,000 medical bill and could you send the money and somebody sent the money and the daughter didnt exist, that would be fraud and worth jail time. Charles overall youre a big fan of twitter . Oh, yes, im a fan of anything that makes communication, faster, easier and freer. And more transparent. Yes, but of course, you know who is a fan of twitter, my adversaries in the ns. A because theyre monitoring what is said. One may say, well, theyre not really doing anything other than looking whats already public and that is true. If i Say Something on twitter, its for all of my and its a good number, fans and followers to look at so i cant claim that theres any privacy in that. But the nsa obviously learns a great deal about all of us from what we say and to whom we say it. Charles i think also, from not a legal point of view, but the way you feel for society, you think its empowering regular people now in a way and you used the word earlier that its not regulated. You like the idea that its detached from a central government. At the present time its not regulated. Just like at the present time for the most part the internet is not regulated although we know that sales will be taxed by various states and see if the tax can withstand a judicial scrutiny and at the present time free speech on the internet is not regulated. Its a good thing and what the founders wanted and what the First Amendment mandates and people are better, happier, more prosperous and successful and more themselves when theyre free to say whatever they want. Charles Joe Fernandez, i want to get back to you. This is your business model. You have clout and you rank how effectively people are using the social medium and you take home different factors. Is this central to the success of social media that it for the most part stays unregulated . Absolutely. I think the power of twitter is that it democratized influence. Historically people who had access to broadcast, those were the people who would influence us. Now anybody in any corner of world can share their passion, share their interest, build an audience, build trust, reputation and brands come to us because they want to connect with those people. You talk about fundamentals. Right now the implied valuation for facebook trading, its not doubling. Its coming up around 28 billion, 30 billion implied ion a price. And the online ad industry is about 120 billion so this means that twitter represents really a fourth of the online ad industry . Thats a serious debate and to the judge, if the nsa is monitoring, i dont want to souud like crazy paranoia, monitoring tweets, what does it do to advertisers who are trying to advertise to users . The government is not supposed to be monitoring people unless it has articulatable suspicion for those monitored. They cant take down everything you say because theyre interested in you. That prevents the drag net. The nsa has been engaging in that dragnet and no court has stopped them and the politicians to provide them with a budget with which to do so. Charles ted, we keep hearing all the great things, all the accolades about twitter about you o one believes that the price is justified. So i think where everyone here is on board with respect to the enthusiasm about the product, but how do you again get back to the idea it might open at 46 a share . Look, if youre just looking at one part of twitter right now, youre just saying, oh, lets look at advertising or lets look at their user base, that is so shortsighted. What we were justttalking about with the nsa right there, and gathering that information, mining that data, that is the same i think this that marketers can use, thats the same thing that Customers Service organizations can use. So, its not just about, hey, let me inject an ad into your twitter stream. Its that wealth of data that comes around that twitter stream and twitter is just sitting on a gold mine of data. If youre just looking short sighted and looking right now what theyre able to do, yeah, its probably not worth it. I go go on google and read anybodys twitter feed. I dont have to sign up for twitter. Twitter is not collecting the same amount of information in any sense that google or facebook or yahoo or any other companies are. The issue here, yes, its a Free Speech Forum and a wonderful one, but it costs a lot of money to create that forum and they havent got a revenue stream that is capable of sustaining that right now. And here we are guys the latest number i have right now its opening between 43 and 47 a share, so, someone believes the revenue stream is on the way. Well find out. We are going to ask the question again, how will twitter generate profits . Thats the question, right . Well talk to one of the social media websites, one of their biggest partners after the break. Come with me on a Magic Carpet Ride wh we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring cter, whe experts watch over all drilling activity twentyfoursen. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Time now for a check of the big boards. You know, i think that twitter sucked the oxygen out of everything. The dow up 14 points is not collapsing, but so much for the ecb news. Right now we want to bring in the vicepresident of development, and greg gund is here in the flesh. And who are you, some of the aggregator of networks . Sure, we consider ourselves a social media platform. Weve got 8 million professionals around the world to help manage their twitter facebook, and Linkedin Google plus facilities. And so having said, obviously you might be talking your book, but youve got to be excited whats going on today . I am excited about it. Im excited to see what the markets reaction is to what they think is the future potential of twitter. Charles a market out of its mind, with the valuation . Totally out of my depth. I can give you twitter advice, linkedin is twitter a 5 billion dollar company. 10 billion. 40 billion . It can be ahead of itself . Can we be too enthusiastic this morning . Looking at it holistically, it could be a substantial. I think that twitter is water cooler should be the handle. Right now it is, youre making it news. And people are talking about this and the future of twitter and thats an exciting conversation, what it is, its a piece of software at that people developed, and they see what youre using the software for, using it to promote your nonprofit or your social identity and take that and make sure that it works for you. Charles when jeremy came in, he couldnt see it, and couldnt see the twitter thing, cant see the linkedin thing and thats you. You know. Its true, its true. We have a the lo of lot of tools that are changing society. As an individual person do we need these things . They have noxious trends of selfbranding which is exceedingly offputting. Words escape me how offputting it could be. It could be somebody personalizing their careers and especially with millenials. Its not like the 50s, where i have a work identity and we shake hands and talk and im combining my work identity with my life identity and i think thats a new kind of stage that digital and social media and twitter are helping people. Charles which is doing great stuff for us as a society. You and i and the tech guys in here and business folks, theres a strange line in the middle of the table. Because, yeah, i love the tools, but when we look at them as businesses, to me, it doesnt add up. I dont think that linkedin is particularly a wonderful business. Its a great tool. My wife is a recruiter and lives and dies by it, but likewise twitter. Is it a business . There are two kinds of things i think about. On average 6. 5 hours is spent on social media every day by the average american, thats an act and yes, a lot of that is facebook and other social properties. Most of its facebook. If you want to look at the business side of this, linkedin, twitter, facebook, pinterest and instagram down the line at some point they need to monetize it. But our own inhouse resident expert on this stuff, joling kent wants to ask you questions. Im far from an expert, but wondering, theres a lot of talk how twitter can help individuals make more money and thats something, are you seeing that as well. People able to leverage it in the same way they can leverage linkedin or facebook to make more money . They have different qualities and three objectives you have when youre posting to twitter. Drive traffic to your website or exposure for your brand or increase your audience gets new followers and friends. When were looking at Digital Advertising a lot of that is direct response, its google, its yahoo driving people to do a conversion and the bigger opportunity is with the 550 billion dollars thats spent on advertising every year, thats more akin to Radio Television and branding here which we think is a great, great resource. Ted, i know youre listening to the conversation, you know, what are you feeling here . You have heard the naysayers so far this morning, youve been enthusiastic through it all. Again, you know, i can see your frustration, you think that everyone is missing the point, dont you . Well, no, i mean were talking about people monetizing social media and being able to use the tools to actually, you know, change their lives and generate income and i look at the social sponsorship space and people monetizing their twitter accounts. Right now people can go to sponsor tweet. Com and sell their tweets. On the low end that can be tens of dollars, on the high end, for a celebrity that can be hundreds of thousands of dollars. And advertisers are happyyto pay that to have the connection, to have the affinity with these people who are influencing others to go buy product or to sign up for a new service. So, there is a whole subeconomy here that most people dont were going to be copy righting tweets . Absolutely, absolutely. And its already happening. Joe fernandez i wanted to get back to you here . Listen, clout, i would imagine maybe at some point you guys want to go public so youve got more than a vested interest in what happens here, youve heard the arguments. Do you think that maybe some of your traditional wall street people arent getting this right that you can monetize these things and that valuations are justified based upon future prospects . Yeah, i mean, how the valuations work, youre buying into potential and i believe in the potential, personally, and what we see happening is people are literally putting their cloud scores, which is a representation of their online persona across all social media, on their resumes, and using it to help them get jobs. And i hear every day from advertisers that people are blind to their ads. You know, we on average see about 5,000 ads per day and they want to catch people in the stream where theyre connecting with their friends in a trusted environment and those tweets are worth a lot of money and those organic authentic conversations really matter. So the worlds going to change in a way that is to twitters benefit and to social media at larges benefit. Charles jeremy, youre the expert here in the room when it comes to technology and thats why we always have you on the show, but youre having a real tough time with this and i wonder, you know, i could see others immersed in this and obviously drink the koolaid every day, they have to, im not talking about but you know. Or the guy. What is it . I listen to what joe just said about this being the future ann how we live our lives and how wii 16yearold kid lives his life. They watch tablets and phones and not tv. This could be ubiquitous and theres got to be a way to make money off of it. There has to be. And weve listed a bunch here, sharing data behind it, a lot of different potentials what we havent seen is actual facts about the plan. Im just worried, im thinking of the dotcom boom and did great stuff. Cosmo. Com a Wonderful Service that would deliver to your door, i used it left and right. And the guys on the bikes with the orange backpacks. Reminder for the viewer, as the metrics that were seeing now for twitter were the same we saw talked about in the dotcom era. Average revenue per user, you know the prices of sales. Emack we are talking dotcom right now. Youre not equitting twitter to pets. Com are you . No, but if youre Warren Buffett looking at the Balance Sheet and the earnings and what its going to cost to ramp up business to get the advertisers in and users in, theyre trading now on what facebook at 100 meaning double what facebook was trading at a fair value basis now. Charles and you guyy go around and you talk to people, you have to raise money and you face these questions every day. How did you over come these questions, how do you convince the big deep money guys that you guys are worth the investment . Its not difficult. Company and monitor this. They have been through the first burst of the dotcom bubble there they believe in the opportunities with Companies Like twitter. They know a difference between a lot of companies. Com were b to b plays with valuations versus consumer play that is have usage. That is what is interesting here. We have a lost tools doing social good rather than just platforms for selling stuff. Right. Really if youre a platform for selling stuff, it is a business model. All of those Business Models didnt work out. We have Something Like twitter. Its a great social change. It is a wonderful force. It is transffrmative. Yeah. I personally, charles, explain it to me, where is the business . Charles listen, there are people who vowed never to get back into the stock market. They were singed so badly, fortunes were lost, web band was another one. People lost a whole lot of money when the tech bubble happened, youre Say Something obviously smart, caution, like someone who lived during the great depression. There is another set of people, greg, you represent, you and ted and Joe Fernandez probably understand better thannanyone on the set think this time will be different although those are always infam mouse words. Sure. Companies that want to get on board with twitter and linkedin, when i hear that, that is all cute, i have to stop you. Models and myths. Bottom line you have to make money. You have to ring the register and ultimately you have tt make some money. Our company we do. Were cash profitable company. Were growing at cash neutral positions. Hallelujah. That is a business. We have pretty strong fundamentals. Are you going public today . Got a lot of people need help with the selfbranding, isnt that the issue. Selfbranding and large corporations. God, i hate that. That is a clear business model. I hate the selfreferential stuff. Charles she was talking about all the obnoxious stuff i was trying to change the twitter. Master of the universe. Best stockpicker in the world. Oh, let me change some of this stuff, yeah. I mean it is part of the world were in too. It was already brought up. The judge brought it up and it was echoed that these social networks do empower people the way they have never empowered before. Forget about 15 minutes of fame. You can be famous as long as you want these days. I just dont think it is about fame. It is about personalizing and having a voice out there. We have blogging being part of the first revolution. You dont want to listen to all these voices, sorry. You dont . No youre not on twiter . Because of problems with people talking to me. That is another day. Well get you anonymous profile. Start you off listening to really smart people like our friend over here. Charles after i change the obnoxious description of myself. This is the way of the world. And ed beauty to us ski made a fantastic point earlier maybe this is Shaquille Oneil in the 8th grade. Ultimately it will be something, a force that has to be reckoned with. I think it is interesting analogy. I think the folks probably investing today are bought into the future potential of twitter. Charles is ed still with us . Yeah. Charles ed, we have 45. 50, to 46. 50. Feels like we narrow it down and well start to trade. What does the stock have to do . It opens at 46. 50, if it keeps going up on will that feed on itself . If it begins to plunge, will that feed on itself . Someone will come into the stock. Important on valuation basis, a stock should trade, its price earnings ratio should be close to or equal to the growth rate of the company. So right now it has no e. It doesnt make any money. So if youre looking at it as Keith Fitzgerald did earlier on a pure valuation basis you never own the stock. If you look at it based on the idea it will have a great revenue model down the road, you buy it. Right now i think you sell into the stock, it drops. Over next couple weeks make you pick it up. That is what i would do if i was buying the stock. Am i buuing the stock . Im not right now. I think were a long way away from seeing a big profit in twitter. Im a big twitter user. And i use hootsuite suite and i love the way you guys do it. Charles i thought they ripped off the very people that followed them and made them successful. I also thought they blew a great opportunity to get americans in tune with the market again. These are the kind of names, people who are not normal buyers of stocks and come into the market and buy, in the facebook situation they were singed. Is this moment in time where the average investor who swore off the market nibble as little bit and s destroyed once again. I think so. I differ on that. I think Morgan Stanley did a great job getting the price they could get for their client which is facebook. Right now if you go into the market and want to buy shares of twitter, dont do it at this price point. It doesnt make any sense to be at this price point buying. Maybe wait 40 drop back from where it is now. That will happen over 20, 30day period in my estimation. Charles was that ted . Oh okay. So here we two go, jeremy. Even a 40 question from 46, this in your mind still something reality is still disconnected from where we should be . I keep in my head flashing back what happened with facebook. It was very interesting, right . There was a lot of people talking before the ipo about what was going to happen. A lot of people said, privacy concerns. Who really needs this facebook thing. Is this a business . At the time they were profitable. They become more profitable. The stock fell down a lot and came right back up again. I think there is value, a lot of Intrinsic Value and site that really changed around the landscape of our society and also has a great business behind it. These things do work sometimes. Charles i got to say, you have hoot suite and all kinds of names out there im not aware of. One of the problems i saw for a while, the barrier to entry, is it difficult . How do you stop competition, particularly in this area because it feels like, you talk about creative destruction, it is on steroids when it cops to technology. Right, right. You touched on something really important there. Its the realtime interest graph that twitter has created here and thats the core of what theyre able to provide to advertisers and to their users as well. That take as while to get up and grow. There are Network Effect that is kick in and make i have difficult for other companies to build and compete against that. Charles i got to tell you, i dont know that i heard there is a competitor but we look at facebook which is, you know, something you obviously like. But facebook the key numbers that advertisers like, like younger people, theyre starting to fade a little bit here. You know, i think maybe some of their acquisitions that might have helped them out actually ironically, some of the acquisition they made recently, instagram i think is probably saving them more now with respect to valuation than the actual business which seems to be fading already. I think youre touching on something we really believe in our business is, in the decisionmaking power of the people in charge here. And so Consumer Preferences will change. Theyre ramping up. Things are getting really dynamic. People are communicating in different channels in different ways. Facebook saw something they wanted something lighter weight, more real time, and more branding opportunities and so far we have to talk about competitors for both facebook and talk about twitters competitor. Sure. Snap jet, instagram, whats app, is that a serious issue . We also need to know more from twitter how rapidly do their users, do their users go dormant . Do they not use their twitter accounts . I think there is two things here, a problem and opportunity of other people moving into the space and we really believe and have seen social media get more fragmented as it goes along. Twitter, linkedin, google plus. We bo, we chat, pin terries, these are pinterest. These are growing now at the same time you see opportunities twitter and other companies have to increase engagement. Stay on that point. Twitter is about flashing a headline and opinion. Snap jet is sending 350 million photos a day reportedly. That is intense user interest. Whats app reports 300 million active users, triple number of twitters active users. Those are messaging services growing quite quickly. The lightweight nature of it and the fact it is oneonone. You get over the stage fright being able to publish something the world can see. I think youre seeing qualities there, other networks should Pay Attention to. Charles okay. Hold on one second, guys, well go to the floor to get an update. Nicole petallides on floor of the New York Stock Exchange. Give us an update. I just walked out of the crowd now, 45. 25 1 2. 45. 50 were looking at. Should be within five minutes as it gets opened. I still hear shouting. Obviously an intense crowd, a big crowd but they seem to be narrowing it down to 45. 25 and a half. That is what were looking at here. This is 26dollar ipo. This will have great upside potential. You can still see big crowds there. News services, and the like, everybody trying to coverr3 obviously the most highlyanticipated ipo of the year here. And so far everything seems to be going smoothly and 45. 25 45. 50 is where it is looking at the moment. Feels like the calm before the storm. Nicole, thanks a lot. Lets go back to Joe Fernandez. Youve listened to the conversation. No doubt absolutely the direction where were going in as a nation and the world. You can debate the monetizaton of it, maybe the competitive aspect of it. This will be something a part of our every day lives. Well all eventually know what our cloud score is. I hope so. That is what were going for. By the way, i want to ask you what mine is, off air. Im embarrassed to tell the world. I know Single Digits but off air. Right. Yeah, i mean social media at large is a part of our lives and, when youre, whether youre dating, somebody will look you up online, whether youre going for a job, people will look you up online and your ability to impact the world, to share your thoughts and feelings is just, it is important. Its a part of our lives and twiiter, facebook, instagram, all these tools are part of that, and we are the standard for measuring it. I got to tell you, jeremy, you know what . I do share your concerns. I personally wouldnt tell anyone to buy this stock here but at some point when it has a trading history and they have, you know, a execution history, i think youve got to come back to them. Maybe they are early and maybe ed might have had the best analogy of the day, Shaquille Oneil in the agent grade without a doubt 8th grade. Can i make a final point . Charles yeah. Twitter is 200 million users is daily active users, one analysts like to talk about. Charles it could swell at a moments notice. I want to go to jo ling though. Jo ling, you have an update for us . Yes i do. Were geting a lot of interesting tweets here. I will take a quick look at some of them for you. A lot of people are saying their twitter baby is all grown up, calling it absolutely, were seeing in terms of pricing right now. Others saying, get on with it. I will share a few tweets with you. We have been following this. Wall street mike is saying, worst part of this twitter ipo is the 50 plusyearolds, people in my office, discussing what twitter actually is. [laughter] eric, few minutes ago saying you know youre doing well when people using your service are talking about your service. Another person weighing in, steven mack entire, in dublin right now, headquarters for europe, big milestone today, watching the bell ring together in the Dublin Office and tweet ad photo. Lot of excitement on twitter about it. If you have a niche audience using twitter and very small percentage are using twitter youre in good hands with this priceing. There is something unique there, right . Our twitter baby has grown up. This is ownership over a corporation. People feel a part of this. A number of us have been there since the very beginning those first milestones. Now it is growing to something where youre seeing great market interest, because we feel connected with a service that helps us connect with other people. Charles there is absolutely no doubt. That is the part no one can debate. Joe . Okay. Thats the part that no one really can debate, right . It is part of our lives. And i got to tell you, my son, 16 years old, im like, you know but is it indispensable part of their lives . Charles for the kids is. Put this thing down or i will not feed you. Ultimatums come out. Definitely amongst kids. Amongst the adults from this table i think well see a lost change for twitter next couple of a business and bring in more advertising mediums. Whether they transform and pushes off or alienates users, 100 Million People on there every day we have to watch. About indispensable part of our life, movies are. But i dont go to movies every day. Right. But im sure you read newspapers every day. The fact twitter is entertainment medium and utility for breaking news and being able to connect with other people. It has twoedged application. In addition, if youre talking about 100 Million People every day, imagine with a storefront that 100 Million People came to every day and opportunity you have about listening it is not a storefront. Theyre not selling anything. Its a digital window people walk up to and peering through and move to the store down the street. Some f the most interesting things down the pipeline will do a twitter card. This is something they introduced earlier this year. It will increase the ability to do more, Higher Quality actions inside a tweet. Things like photos, being able to take actions, purchase things. Charles okay, guys, were very, very close. I feel like the new years countdown clock. 45. 45 to 45. 25. I have almost want to say, 10, nine, eight we are getting that close though. Any minute now. There it is. We are trading. You are watching the first trade, twitter, 45. 55, up 75 , wow all you can really say is wow on this one. Twtr, spectacular first trade. The stock was ipod at 26 a share. Niche at this it would bb 17 to 20. Then raised it to 23. 25. 26 was final number. Up 75 right out of the gate. 13 million shares traded. This will be all over the place. Are you feeling any better about it, jeremy . There was tremendous interest. We saw it all coming. Throw it back to you, that it is 45 versus 26. Does that mean they were pricing it incorrectly. Charles ed and i debated on this i think it is priced perfectly of the as a company you want relationship with your shareholders. You dont want to say i ripped you off. Feel invested in my stock and you were ripped off. I think that is where facebook wow. Look at the big crowd. Well try to get to nicole in there. Got to be some exciting stuff down there. Can you hear us . Im telling you, just hearing you i was in the crowd. First trade was 45. 10. Now it is 45point6. That is gain of 76 on a 26dollar ipo. All traders filthinger out from the big crowd which was highly anticipated twitter. Right now at 1050 a. M. They finally got it open. They wanted it open in the 10 00 a. M. Hour. Were hoping 10 15. It went smooth and as planned. Trying to make sure there were not any glitches. They had open communication at 8 30 with a Conference Call with Duncan Neiderauer. And traders were able to call in and get the best understanding how it would be opening. We had a smooth opening. 45 10 was the first trade. Charles that will be a pivotal number 45. 10. I would call it a yellow flag. Anyone behind this thing, wants to trade sideways and find a leg higher. I will point out, i made this point earlier, guys, the stock, broad market is lower after being up substantial this morning. Open table had a big earnings report. Its done. Linkedin getting hammered. Yelp is down. This thing is so big, sucking the oxygen out of the air or out of the room. Might be from the select crowd, fast money crowd. People like this sort of thing. Maybe not everyone is excited but trading 20 million shares. What it is trading at is the sam valuation as Omnicom Publicis advertising merger. Charles i want bill harris, from paypal. Youve seen this before. It is exciting to people who havent seen it in a long time. Do you know how the script may play out from here and the stock and the company . Well, sure. Twitters a Great Company. It has become as, essential to electronic communication as oxygen is to breathes but, if its a breathing. If its a Great Company that is not saying its a great stock. Right now it is trading at something in excess of 40, maybe 50 times multiple of revenues. Thats much higher than google and facebook or linkedin traded at when they went out. So you have to think, you know, what is the price implying about the longterm benefit . A couple of other things, if youre thinking about buying an ipo in the Retail Market historically, just over decade, ipos have traditionally had average of 17 first day pop. Weve seen a much bigger firstday pop here with twitter. That money does not to to you. That goes to insiders who were able to purchase before the stock was launched. You pay the higher price. And then if you look at the Historical Performance of new ipos over the first two years, they average. 5 less than the market, they underperform the market. So as a retail investor, i dont think it makes sense to get in. You just echoed ad point ed boo to us can i, butowsky. You said up from the ipo price you would not chase it here. You would wait a few weeks and few months . Would i i think for individual investors does not make sense to have single concentrated positions in twitter or any stock. What you look for is diversification. Charles there is no doubt about that but i want to get to you ed butowsky you have been making same point. The stock is at 47. You would tell people not to chase it . Not a chance in the world. Goldman sachs, they probably wont get rehired again, because they left 10 billion on the table. Charles hold that thought. We have to go to the floor. Nicole petallides with Duncan Neiderauer. Big day at New York Stock Exchange. As we focus our camera, Duncan Neiderauer came out of the crowd. Drinking water and tossing it away. How did it go. It went way most ipos go around here. I would have predicted to [inaudible] a lot of people i think were paying such close attention to it. A lot of limits were still moving around. You can see how the stocks trading after the opening at 45. 10. I think we got it exactly right. Customers are happy. Investors are happening. We got confirmation participants have their reports. It is all set and should trade normally rest of the day. Do you think what you did up to this poi right thing to make sure, checking on weekends, you had a Conference Call early this morning with traders and market make officers. We actually thought it would go pretty smoothly. You never want to take anything for granted. What we said to the team is, i know we do this every day. I know were in the best in the business at it. Lets not leave anything to chance. Lets not take anything for granted. Do the extra work. Dot the is and cross the ts, and sometimes we take for granted, right . Look, facebook went to the nasdaq. That was a debacle. I will say it myself. You dont have to say it. Talk about how you tried to woo Dick Costello and twiter . I heard it was two years in the making. How did you get him and how long did you take . To be clear i met dick for the first time this morning. We worked closely with his team last two years. We were not talking with him last two years, about the ipo we were talking about his business, our business and how we could get together as a partner. We didnt just show up with the ipo pitch, without being familiar what twitter was trying to do. We had a working relationship since probably 2011. That is our approach to these things, nicole. It is not about wooing anybody. Using our b to b network and assets we can deploy to have them run their business successfully. You had a lot of tech stocks run here anyway. Someone asked me about that yesterday. This isnt about us, it is about twitter and users and market participants. This is latest win in series of tech wins. Add this to linkedin, pandora, yelp, sales force. Were on a role and a good partner. Give us a sense what it was like to be in the center of the crowd . One of the traders came out and said it was really hot. If you were saying three things in that crowd and how it felt to be there how would you describe the moment of the twitter more thanking in. The first one was very exciting. The second one it got heated in there not because tempers were flaring because it got warm. Everyone was in there for hour and 15 minutes basically. Faces of founders and management team. Like they were with it every step of the way. We were keeping the world informed what was happening real time. That is the word i will remember about this morning. We redemocratized access to the information that is always available. You know it. Not everybody thinks it is. Our objective this morning was to take it readily available to everybody. The latest on nyseice . We hope to have the final signatures, i said to the team yesterday in a town hall meeting it will be any day now. I know that is cliche. Weve been hearing any day now. Like someone said when you really wanted something it will be any day now, any day. I genuine believe it will be this week or early next week. I dont think it will be any later than that. Duncan neiderauer head of the New York Stock Exchange right here. Nyse euronext. Appreciate it. Back to you guys. Charles duncan couldnt con tame him self. Took a jab at nasdaq. This is way we always do it. This is old had for hat for us. Weve been doing it for a long time. The stock is up 85 from where it is right now. Valuation argument will go on. This is a big deal. So far it has been a huge success. I didnt mean to talk over nicole. I think people will be minting money short term on the trades here. Charles going back and forth trading all the time becoming a trading darling . Yeah. Charles but still this is absolutely, just absolutely phenomenal. I think that reflects how important it really is to our society. The question about is it a Good Business i think is longterm one. The stock price next couple weeks or days will reflect that. Touch on one thing a little bit. Charles sure. As software guy, guy that builds products were not altruisticcbut there are actually a lot of folks driven by a lot more than money. Im really excited by Twitter Developers and engineers. Charles that is great news. Not just great news for industry but great news for American Innovation and ingenuity. Dagen and connell. A huge debut. Twitter lived up to all the hype. So far it has. To you guys. Few minutes in, hey. Breaking news well be covering. Charlie gasparino is in. Tells us has good stuff. He is on the phone too, brother . That is new information. Markets are down a little bit and twitter is not. Twitter is not done. The economy is growing faster than it was in the second quarter. All eyes on twitter. Nicole petallides standing on the floor of the New York Stock Exchange. With what, nicole. What are you looking at. Good morning, dagen and connell. Just came out of the crowd. Just spoke to Duncan Neiderauer who was in the twitter crowd, the first trade as weve been watching here. Right now it is at 49. 42. That is something. 89 to the upside. Everything went smoothly as anticipated. And, we saw it opening around 10 50 a. M. So in the 10 00 a. M. Hour. So you can see the stock is up 90 at the moment. So that has been the hoopla of the morning. Obviously highly anticipated stock of the year. Ipo of the year