But that was seen as what the key proposition was for people, disappearing pictures pp, yeah. It is 11 00 a. M. On the east coast, 8 00 a. M. Out west, obviously. Dows down 28 points. The story of the morning remains the ipo of snap. Biggest tech ipo on the u. S. Exchange in almost three years. Pricing well above the range. And obviously, its going to open above that, as we are now looking at potential market caps in the range of 33, 34 billion. Sara eisen, david faber and myself at post 9 all morning long. Joining us at the desk, roger mcnamee, and eric capoue. Exciting day. Great day lets get your take on what appears to be pretty bullish action in the stock. What do you think people are responding to . The stock was way oversubscribed yesterday at the ipo. I think theres a lot of excitement about snap. I think snap is fun, clearly has a very engaged audience, and theres a new player that we now have a duopoly, facebook, google. I think theyll continue to do well, but now theres a new player on the scene. Does it bust that open, roger . I think its lets face it, the market has done way better than Institutional Investors this year. Hedge funds are lagging. Mutual funds are lagging. They need big ipos to get back into the game. Snap is coming along at exactly the right time with exactly the right scale of deal. I will tell you, i think its grossly overheated. You know, google traded under its ipo price. Facebook traded under its ipo price. In all probability, snap will trade under its ipo price. Probably wont take all that long to get back down there. I think cool heads will be more successful. It will be a great trade, you know . Well see how long it lasts, maybe whats in the pipeline in terms of ipos . You say we need to see more of them, if this is a success. Well, i think investors and bankers would love to see more ipos. I think the question is can they put together the kind of marketing sizzle that snap put together . Lets face it these guys were magicians. They made more out of a very small success than the vast majority of companies can do. And i mean, i really tip my hat to them. Its been a brilliant Marketing Campaign and theyve been rewarded with amazing timing and theyre going to have a terrific ipo. What do you make of its been said about, at least about evan, if not the company, that they zig when others are zagging . Thats held them in pretty good stead so far . It does. I think snaps been incredibly innovative, and the fact that they call themselves the Camera Company by itself is kind of, what does that mean . It means they want to capture all the images and all the videos, and thats what this is all about. They seem to have made a success of the glasses where google hasnt been able to do much with their first generation. So, theres a lot of innovation. The fact that theyre in l. A. , theyre in venice. They dont have a headquarters. So, they behave in a different manner than the people in silicon valley. Theyre very brave. I mean, turning down the 4 billion offer from facebook was at the time it seemed insane, and yet, they were absolutely right, and i really, really tip my hat to them. Incredibly brave, incredibly clever, but lets face it, the revenues of the business are small, the profits are negative in fact, the losses are huge and at the end of the day, eventually, people are going to look at the fundamentals, and its going to be very hard for the fundamentals to catch up to the valuation were talking about today. You mentioned the duopoly. Whats to prevent, as many people argue they will, either facebook or google from just consuming whatever space in the middle snap tries to carve out . I dont think google is even trying, but facebook through instagram and mainly its trying. But look, once you have a Network Effect and snap is a network. Its a network of younger people who are having fun, who are sharing more content than, you know, maybe arguably than facebook. Its tough to pry those people away from the networks. I think instagram will continue to copy what snap is doing, but it wont necessarily take the core of the audience away. Well, and they have a chance, eric, i think, to limit the opportunity. I agree with eric completely, its going to be very hard to displace snap, and i frankly think that discovering some of the other things theyve done are truly brilliant. But again, lets differentiate the stock from the business. I think the management and the company, incredibly cool. Stock, you know, shall we say fully priced . Sure. And its going to be a heck of a trade today. What happens after today is anybodys guess. And you know dont i want you two to stay right here. Speaking of trades, lets get to bob pisani and see whats the latest we know. Bob . Indications have not changed, 23. 50 to 24. 50. So, remember this process. They priced it last night at 17. Early indications 21 to 23. They upped that quickly to 22 to 24, but in the last hour, frankly, its been very stable. This is one of the more stable ipos than some of the other ones like xpo thats moved around a lot. Its been coalescing around the 23 range. So, 23. 50 to 24. 50 is where were at. I want to show you the process. This is the runner of goldman operations here. Goldman is what we call the stabilizer. In a sense, theyre the company that assembles the institutional book. Shawn is sitting here. Of course, hes in touch with the goldman desk thats assembling the book. You see patty murphy over there on the far end who is talking to traders on the floor and also helping assembling the book. And again, i emphasize this so many times, its a beautiful mix of human beings that are sitting here looking at massive orders to buy and to sell stock and computerized programs that are helping them understand exactly where the market should be. So, youve got guys that were standing there with pads in their hands. Theyre really glorified ipads with orders, talking to their trading desk on the floor, yelling back and forth, saying, okay, i want 3 million at 22. Okay, the price is 23. 50 . Now i only want 2 million, or i want out. Im in. Thats why it takes so long. Its a giant poker game, but people can remove chips at the same time as they put in chips. And at the end of game, when the final pricing is, everybody gets one price and essentially everybodys chips are in at the exact same price. So, you see pattys standing there, carell is standing there as well, glen carell. I cant emphasize enough, this team has cornered a massive part of the overall ipo market. Id love to gem thret them over and explain how they got Companies Like this, a snap, alibaba, twitter, all the big ones these guys pull in, but its a combination of being on top of the trading and being able to explain to the companies. What a company like these really want, when ive talked to these guys, is we want to be able to call down on the floor, a snap, for example, the head of Investor Relations and say whats going on with our stock today . Why is it moving around so crazy like that . And their job is to sit here with very sophisticated analytical tools and be able to explain to either the ceo whos calling up or Investor Relations, heres whats going on, heres who the buyers anz sellers have been, heres the exchange where its been trading heavily and heres what we think is going on. Is there a big seller, an individual seller, massive sellers . Give us a sense of color. And in a sense, thats what theyre paying for to list at the new york stock exchange, to have access to that kind of information. Gts, which happens to run this particular operation, has some very sophisticated Trading Tools that are available to them as well. So, this is a big factor in trying to decide who are you going to, not just what kind of exchange youre going to but even what kind of company there are several companies here on the floor that actually provide the Trading Opportunities that are available, gps being this particular one. Let me just toss over here and get patty. Patty, anywhere close, pat . Anywhere theyre all staring intently. This is a big pat, are we getting close, pat . Okay, were looking like five to ten minutes. Thats what im hearing now. Now, normally, again, youll start seeing them go a little bit crazy when we get a few minutes before. Theyll start yelling, because theyve got to go to the crowd, which is standing out there, and say, guys, this is it. Tell your people, no more messing around, we want final bids and offers because were going to close the book soon, and people start waving and they get people franticly calling their offices, saying, this is it. Anything else . Anything else . And then theyre going to try to close the book. Youll hear the final phrase, the book is closed, and then the market, the stock will open ten seconds later. So, again, its a very human process. Theres a real actual auction that goes on. Theres a lot of computers involved, but at heart, theres a lot of people. So, were talking now five to ten minutes. Lets just stay here. Ill try to get a little closer, see if the indications have changed, but theres no were not seeing anything, right . 23. 50 to 24. 50 are the indications right now. Getting very, very close. And remember, guys, were talking about a market cap of 33 to 34 billion, assuming we open somewhere near 24. Back to you. Bob, watching you do it every time, it seems like a new experience. Well come back to you in a few moments. Mike santoli is joining us on the floor, but roger, i want to get a point you made about the retail aspect . Typically in a tech ipo, youll have 80 of the allocations to institutions and about 15 to retail. My understanding is that the allocation here was essentially all to institutions. I think that the way the marketing worked, the assumption was that retail knew enough about the Company Already and was excited enough about it that you could deny them access to the ipo and that they would make the aftermarket. Now, well see whether that works or doesnt work. It seems to me that from a marketing point of view, that was a risky strategy, and well see how it goes, because there are 200 million shares. Its going to trade a lot of you seem open to buying some at a lower price, if and when that i think snap is an amazing company. In this context, eric and i completely agree about it. Im just talking about a stock. And you know, as somebody whos done this for a long time, i mean, were in the new york stock exchange. Normally, you could throw a hand grenade on the floor here and not hurt anybody. Easy. And today, i mean, its piled up just like its 1999 all over again. Its 99 all over again, i know. And its kind of fun, right . Theres a tremendous energy. But at the same time, lets remember that that energy is not actually correlated to the underlying fundamentals of the company. And 32, 33 billion, thats real money. Its a high valuation, mike. Just want your thoughts as we await the opening trade. What will you be looking for . Its a high valuation. Honestly, i think as a process, its really hard to quibble with the rigor of it, are wl the orderliness of it in terms of how they raise the offering range and priced it slightly above. All of these things seem to have gone into place. Also, it seems like the kind of initial opening pop, if this is the range were going to see the stock trade in, that youre more or less looking for, showing enough enthusiasm but also not something that seemed like kind of a chaotic grab for a much higher price. So, thaul works. I think one of the interesting things here is certainly versus facebook and even to a lesser degree twitter, is not just whats it worth, but whats it worth based on what, right in terms of the stickiness of the audience. Its not necessarily as far as theyre concerned about user growth. So, thats why i think there is a wide range of potential outcomes that all these investors are looking at. And yes, i think theres some hype behind it. Were talking about a lot of attention on one deal. On the other hand, the skeptical case on snap as a company has been very much out there, and in fact, i think if anything, its almost the default opinion of a lot of people who hear about it. Roger, you have to have imagined viewers heard what you just said and want to know, where would roger place a bid . You know, thats a great question. I havent actually thought about that question because it was pretty obvious that they werent interested in my input. And so, i mean, realistically, the Company Still has greater losses than it has revenues. And so, as a consequence, you know, the price to me is its not even in the same time zone that were talking all right, but here, i mean, 160 million daily users. They average 18 times a day opening the app. Right. They spend 30 minutes on it. Theyre growing quickly. Those arent bad numbers. No, those are outstanding, but you have to turn them into revenue. I understand. Theyve only raised revenues for two years. Exactly. Revenues are going to go zooming at that company because the publicity around it. I think the marketers have all been gearing up. Snap, theres a lot of engagement on snap. They do their advertising differently than facebook does it, so its more like advertising. I think its going to be very successful. I think we need to be a little bit more cautious. I think the advertising is there so far as out of the experimental budgets of the agencies, and there has historically been a great fear of advertisers to tie their brands to unknown authors. That is to say, if you cant be sure of what the content is i mean, if youre proctor and gamble, you do not want your ad tied to a sexting video. But thats always been the case regarding placement in the context of a show. No, no, thats exactly correct, which is why i think, to erics point, i think the revenues grow very rapidly, but i dont think they grow to the moon. I think they are going to have to create products that can support advertising that large brands want to place. Eric, i have a question for you, because youre talking a lot about the competitive advantage here for snapchat. What can snap offer to advertisers that Instagram Stories cannot . I think the fact that they treat advertising and media content in a whole separate section called discover is a plus. The advertisers know exactly what theyre getting. The data this is an area where snap needs to improve. Their data capabilities are still very primitive. But the initial data shows that people really engage and they engage with the advertising. Its not as it is on facebook where you dont really know whats going to happen. You mentioned content. Its interesting. Have they been marketing themselves at all as a content player where they would be ultimately hoping to get some of the tv ad budget dollars, which is sort of the holy grail . A lot of money allocated there. Well, they have we have a number of Media Companies that run programs on snap or snapchat. And you know, theyre looking for more original content, theyre looking for lengthier content. All of this is videobased, by the way. So, yes, the answer is and the agencies have less and less to do with any of this because the agencies, the creative agencies are really not a player anymore. Theyre not a player on facebook. Theyre not a player on snapchat. But to rogers point, is there a ceiling . I mean, i know why kfc has a lens, a sponsored lens, but is cadillac going to have a lens . Is Morgan Stanley going to have a lens . Other big buyers of ad content . Absolutely. They need to bread themselves with younger people even though the purchase might not happen for years . Absolutely. Cadillac in fact moved their monthly people to soho to be more with the young people. Time will tell how big that opportunity is. I mean, im willing to accept that notion exactly, but i dont think the dollars behind it are going to be measured in the tens of billions. I think theyre going to be measured in the tens of millions and ad to low billions. On that basis, the company is going to have a great run, but exactly what thats worth, the markets going to have to decide. I want to show you you know everybody who comes in to ring the bell gets to sign the log at the nyse. This is Evan Spiegels signature. [ laughter ] to the degree i mean, that is a signature right there. What is that, a sticker . Yeah, its the rainbow vomit the rainbow vomit sticker, yes, in the book at the nyse, which he signed before the opening bell, i would assume. Thoughts on evan as a cofounder, as a visionary, some say. Eric schmidt, others have had extremely nice things to say about him, eric. I dont know evan personally, but from what i can see, he is incredibly creative, hes very innovative, and he knows what he wants. In other words, hes very determined. So, i think hes going to be a player for years to come. Which also raises, roger, the Corporate Governance issues. We talked about the sort of unusual nature no voting shares are being offered in this ipo. Does that raise any red flags for you . I dont think it raises any more red flags than we already have based on valuation. So, i look at this, and you know, to erics point, evan spiegel is 26 years old, and look what he has accomplished already, you know . Obviously, we dont know how far he can go. My presumption is a lot further than this. Sara, it really bothers me when people have no voting. It really bothers me. Now, does it bother me as much as the stock price . No, because the stock price stops me from investing way before the no voting. I think Tech Companies make a terrible mistake trying to create their own rules and trying to make themselves separate from the core economy, whether its staying private for much longer and not having voting. Those things so, youre not a buyer of the notion that it insolates them from shorttermism, from the mania of the street . I think it insolates them in a way that causes them to do as many dumb things as smart things. So you know, you look at there and like what, acquisitions . No, im saying look at some of these unicorns which also have had very, very limited voting on the part of their investors. I mean, many of them have done incredibly stupid things. And you know, weve had therrienos thats not a public company, come on. 24 i believe is going to be the opening price. Were just about there, im told. We heard a cheer. We heard a cheer. Bob pisani, what do you know . The important thing here is theyre pairing off, meaning the bids and offers are starting to pair off. Its coalescing around 24. That doesnt necessarily mean the price is going to be 24. Anything could happen. Its a completely dynamic process. So, how are we going . Are we open . Opens at 24 24. Snapchat opens at 24. Pricing at 17, opening at 24. Tom farley has just walked in. Another big day for you. Finally, a bigname ipo and a unicorn going public. Yeah, bob. We took a while to open the stock because