Street. Bob pisani. A lot of fun today the company priced at 17 per share, it closed at 24. 48. I call that a successful opening. Now snap has a market cap, 34 billion. This is the same neighborhood as travellers, deere, General Mills and marriott. Why the healthy pop . The markets are trading near historic highs. Second investors have been starved for a high demand ipo for a long time. Third ipo returns have been strong. The average ipo is up 26 in the last year. And finally, the number of shares the company floated pretty small, just about 14 of the total shares outstanding. This was a great first day pop but a lot of Tech Companies have had great first days then they run into trouble within six months or so. Item number one. Facebook priced at 28. 12 but had a terrible time after that. Then we had twitter. They priced at 26 in 2013. Huge first day. They closed almost 45 but it too was plunging six months later. And we have alibaba. They priced at 6 in 2014. Their first day they closed at 93 but it too was dropping six months later and eventually went below its ipo price before recovering. We got that six month cliff. Melissa i said this before, the ipo market is going to open. Im looking for easter, the calendar starting to look a bit crowded. Bankers are getting called. I know i did this with you back in december and we had a terrible february, but i think this is finally going to do it. All right. Well hold you to it. Thank you. Lets trade snapchat. As soon as snapchat opened, one had a 10 price target the other had a 16 price target. Dan, where do you stand here . I think its fantastic they had a successful deal. Congratulations. They pulled it off. Heres the other thing i want to make. It really is about scarcity not only ipos but also the fact that this is a very unique social property and when you get asked this question all the time. We have lots of guests on who ask about how do you play a pure play br or ar. Theres nothing out there in the public realm. This is it. Of course its an ar play. When you think about how the people use these filters and what theyre going to do with it and you talk about the wearables, im not telling you at 34 billion its a slam dunk. Its one of the only pure plays in the Public Market in which to do it. Lastly, last summer you remember that pokemon go phenomenon. It got downloaded 500 million times. You look at pokemon go and there is room to grow this thing pretty substantially. Before you start discounting the potential growth theres other things to look at. Facebooks instagram already has more users you know what . As far as facebooks concerninged the kids are not using facebook proper, theyre using instagram and i think that snapchat has a beach head here. It very well may have room to grow. It better grow. It already was a little bit scary. Some of the metrics, the rate of growth slowing, some plateauing. I thought at 24 billion, that was already discounting a tremendous amount of growth. At this level, the scarcity value i get that, not that many shares that are publicly traded. However, i cant get anywhere close to valuation. You got to think that growth is so spectacular for a while to come. For me, its not the that i disagree that its an augmented reality, i guess it is but that to me is not something that is really compelling but its just something thats relatively new. Youre going to want to get into that when youre a venture capitalist. So on a venture capitalist is essentially basically selling me the shares in augmented reality. Thats not the time i want to buy it. Facebook is up 700 from its post ipo lows. Theres very few venture capitals that have this sort of return in snapchat. So what im saying is before we want to get all negative on the story because it has an eye popping valuation i think you have to think about the fact theres a lot of things were not even considering where this companys going to be going. I totally agree. Facebook went down after its ipo. Im talking purely from a Public Markets trading im not sure you buy it at these prices. Im not saying that. Keep an open mind. Guy, welcome to the show. I do have an open mind. I posted a snapchat picture you cant post it. I dont know how to use it. How do you trade the stock . 24 and a half dollars . At some point over the next couple weeks it retests the price the ipo price at 17. Do you want to play greater fools theory . Maybe its the right thing to do. Could it have a 30 print . I guess it could. Im inclined to believe that by easter, to your point, or sooner than that bob pisani did. Thats what happens. Thats why i shouldnt be talking about snapchat. I cant tell dan and bob pisani apart. I dont think youre going to see 17 that quickly. 200 million shares. You think about the buyers. When you look at these large mutual fund complexers. Theyre not buying it from ten years. Is this basically an Advertising Company . It makes its money by selling ads . We dont know yet. Then why are we buying it. Youre buying it that because you believe that spiegel is the next zuckerberg. Theyre 400 million in revenue does it have to compete with facebook, and twitter and google . My point is that youre just trying to be difficult. For you, dan. The point is that when facebook went public it didnt have the competitor that this has right now. Heres the thing. You couldve said the same thing when twitter went public. It had that competitor in facebook. They went from 500 million in sales to 2 billion last year. Theres no doubt in my mind that senate chat will do the same thing. Twitter has not changed their product one eye oata and its become a cesspool of just everything that we hate about social media and this is not thats what youre making the bet on that. They see it as a form of communication amongst people. So did twitter. They saw it as a form of communication. If snap doesnt change their plan, doesnt change their Business Plan then they go the way of twitter. Let me just ask you this, this valuation, what do investors need to see in the first quarter. You mean 35 times sales. They need to see a lot. Facebook again is going to do 40 billion in sales this year. That is still absurd. Theres no doubt about it. But its the only way to play that advertising play. Thats it. What does it mean for facebook valuation . Were you surprised that facebook didnt do much . It was a great day today. Unchanged. I do think it facebook was not the atm for snap. I think i think facebook should trade up and maybe it has been. I dont know. I think its good for facebook. But im skeptical of this valuation for snap. Right. If youre looking to invest in snap, you may want to grab the drama meter. The next guest says the stock will be a roller coaster. Gene, always good to see you. Hello. The vast investors out there did not get a chance to buy at the open and they might be sitting on the sidelines wondering what do they do. What do they do . They hold off. You let this settle down. Youve already just talked about the valuation piece to it. You talked about other Tech Companies that had similar ipos. If you have a perspective of a year just dont even mess around with this. If you do have a perspective of more than a year, i completely agree with where dan comes from. This is an augmented reality company. It is a real 400 million in augmented reality revenue and i think that they are going to be on a collision course for this paradigm shift. It sounds too futuristic to impact it but thats where its going. Some might think it sounds rosy too. What is the augmented reality aspect they have . They have a lot of granted, im not in the demographic. Im far from it, they got a lot of fun filters and i get that that is an aspect of ar. How do you use that technology in the future for other things to make more money and sell ads . So initially as you said its an advertised based model but augmented based reality will be a new way well interact with computers and machines. Well go to more natural ways. Thats what specticals from snapchat is. Its a starter. Theyve got a ton of hardware people working on solutions to really flush that out and thats where the story gets exciting longer term is to see what snap is going to do around hardware and play out that vision of being a camera company. So we just had a discussion whether or not evan spiegel is the next Mark Zuckerberg. Turns out hes probably pretty darn close to it so is he the next Mark Zuckerberg. I think so. I think he is. I think they both share both zuckerberg and he havens share this concept about virtual reality. Its shocking how much Mark Zuckerberg wants to be associated with i think theyre both like minded about this paradigm shift. Do you know how the shares will start to be fed into the public . Is there a six month lockup or how will we start to see more of these shares traded publicly . Its my understanding of call the five or so billion dollars float right now, the majority of that is with shareholders who are going to hold it more than six months. I dont know what percentage that is but i think that this will have some volatility to it. The volatility really hits six months from now. So longterm buy, shortterm wait, right . Yes. All right. Great to see you. Thank you. Has gene muenster changed your mind . Augmented reality for me is making me look like carry grant. Not making me look like one of the characters from alice in wonderland. I get this could be i understand this is the first iteration of many iterations. You got to hope in the meantime the only reason to buy here today is to hope somebody a little more ambitious is going to buy it at 26 bucks. Let me answer that question about the advertising model and what does it do. It makes the product sticky. So my 13yearold daughter, my 11yearold daughter are now obsessed with these filters and communicating with their friends this way but theyre also getting their news through the new discover platform now. To me when you think about it, theyre going to continue to add products on to what they think is a camera. Its going to go in a lot of different directions. When you have an ipo that was priced maybe at the high end of the range and up 40 or 50 oh, my goodness. I dont think retail should go in and get it. If youre fidelity or wellington, theyre going to continue to buy this thing and the other point about being with the stock market at all time highs you may get an amazing shot to buy this back at 17. If the market gets hit hard in the next couple months, the weak hands are going to come out of this thing very quickly and that could be your opportunity. President trump doubling down on his plans to rebuild the u. S. Military today. So should investors pile into defense stock . Well weigh in. So how worried should shareholders be with caterpillar . And looking for something to buy. Kevin oleary is here. Hell give us the names when fast money returns. About your brokerage fees. Carl,n fees . What did you have in mind . I dont know. 6. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 6. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Lower than td ameritrade, schwab, and etrade. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. But who you invest with. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Money. Caterpillar shares tanking today as the companys facilities were raided by law enforcement. Reporter it is developing so federal agents searched three of caterpillars illinois facilities today including its headquarters. The u. S. Attorneys office telling us that agents from the fdic office of inspector general, irs criminal investigation, the commerce Departments Office were on the scene today. The heavy machinery manufacturer saying it is cooperating and believes the execution of this warrant while broadly drafted is regarding among other things, expert filings related to its swiss subsidiary which has been the subject of investigation for several years now. At issue whether the industrial giant tried to evade paying more than 2 billion in taxes by using that swiss business to sell Replacement Parts that came from u. S. Operations. The Senate Released report back in 2014 and the scc which had opened its own investigation in 2015 has since closed that without recommending a penalty, but other agencies have continued to look into this. So despite little impact to that stock when the filing came out in midfebruary, shares did tank today. They closed down 4 . Thats because no one wants to see feds swarming at dow components head quarts. You can read this that this situation could potentially be escalating. Feds and raid never two words you want to hear as a shareholder. Thank you. We should note this is one of the best performing dow components. Look how its traded over the last couple weeks. Absent any news, there are sellers at 99. News comes out and you get a day like today in the markets where its a first down day in 45 days or so or 30 days and you get Something Like this. I would not touch it here. 92 is supporting so its been trading. It wouldnt surprise me to see it break 92. I dont know. Its very good for them it happened now and not a year ago or year and a half ago when things were really very uncertain at the company. Debt was trading poorly. Its now trading very tight. So it would be a much bigger threat then than it is now. Theres more to come but i dont think this will be a complete disaster for them. I think maybe. I would want to own some put and would do it through calls. I dont think its going to be the end. I think you want to think about why the stock is where it is. It gapped up 9 . So to me the stock has gone sideways. It couldnt get through that magic number of 100. It found resistance at 99. That gap from november 9th thats what you want to keep an eye on. 2012 they had 8. 64 in earnings. They had 65 billion in sales, expected to have 37 billion this year. As far as the Global Infrastructure played here, i dont know. Analysts dont seem too particularly excited about it and it still trades plus youve got feds raiding their facilities. Thats not good. Sounds like no touch to you. Credit card wars heating up. The Company Announcing it would increase the benefits for its Platinum Card for the second time in four months. The new perks include 200 a year in uber rides. The move comes at visa and master card from 26 in 2014. Costco is what it sounds like for that. Looking at American Express over the last couple months it had the best run its had over the last couple years. I still would favor master card and visa over American Express here. It feels as though American Express is finally gotting itself out the doll drums it experienced right after the costco announcement. Im still inclined to only am and visa i do think amex has figured out its whoas. All it is is a brand. The payment space is changing rapidly. Pay pal, theyre changing the payment space all over the place. All you have now with most of these Credit Card Companies and American Express in particular is the brand, which is valuable but its still a melting ice cube unless they change the infrastructure inside. I would rather buy paypal than American Express. You dont need the card. Its not like those commercials back in the day when you got your diners club back in the 50s. We talked about 200 worth of uber rides. 200 worth of airline credits. Those are sticky sort of products. If you identify with the brand and theyre giving you that and its covering the cost and then you know its loaded into your iphone with your apple pay, then to me it is much easier than paypal, so the brand is important. Im not saying the brand isnt valuable but if im going to buy something, wheres the growth to me . The growth is in paypal. What youre talking about, though, master card and visa i would think would also be under the same threats, so im long master card. I missed the axp turn around. I think theres still room in master card for a while. Down the road it is a little scary. Youre a value gal. When you look at axex trading below, to me its a nobrainer. The banks have to market those cards. They have to market those services. American express say pure play on that. The credit risk to me but its the credit risk that puts it at a discount. And i do think its cheap. I think theyre going to have the eps growth to back up that pe so i would say with axp. Stocks may be in regard territory but kevin oleary there are still names you can buy at the highs. Hell be here to tell us what hes watching. Heres what else is coming up on fast. I am calling for one of the largest defense spending increases in history. President trump is beefing up our military and weve got the five stocks that could surge off his defense plans. Well give you the names. Plus. Turn out the lights about a hot group of stocks and it could mean big trouble for the markets. Well explain when fast money returns. Bp engineers use underwater robots, so they can keep watch over operations below the sea, even from thousands of feet above. Because safety is never being satisfied. And always working to be better. Because safety is never being satisfied. Companies across the state are york sgrowing the economy,otion. With the help of the lowest taxes in decades, a talented workforce, and worldclass innovations. 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