traders. and three men who invest for a living, we'll ask them if facebook is a good investment for you. ed reilly, ted shapiro, an early facebook investor, and matt mccall, president of the penn financial group. >> dan, let's start with you. let's leave the stock aside for a second. that's a big topic, but this is about the company. it was amazing to see thousands turn out in menlo park to see mark zuckerberg kick off facebook's first public trading day. talk about the mood there and how it happened. what happened to the mood when that stock failed to soar like expected? >> well, first of all, as you can imagine, still conn valley was buzzing over this stock debut for weeks. so much anticipation, all across the country. but here, you know, you could just feel the environment. you could feel the electricity. i did speak to a facebook executive about mark zuckerberg ringing the bell. he said the energy in there was off the charts. it felt like a rock concert. and especially after coming off an all-nighter. they had a hackathon where they were up all night trying to come up with the newest and greatest ideas for facebook and all met in the public square to usher in this area. it was quite an event to see. >> dan, this still remains the story of the company, but it soon changed through the course of the day into the story of the stock. >> let's bring in alison kosik. it was a key question everybody in social media is asking now, how do you make money on technology that changes the world, because it didn't seem like a super sure bet today. >> no stock is a sure bet, right, christine? it's all a big gamble. and when you look at how facebook traded on friday, yes, it ended flat. but you have to remember, it was hyped up quite, quite a bit. so the expectations were really, really high. and with a lot of these tech ipos lately, that's really how it's been. it's been a lot of hype. especially when you see what happened on friday, you know, the investors showed their displeasure in the fact that the facebook shares did not get that pop that they wanted. all of these social media companies, including zynga, yelp, pandora, groupon, linkedin, all ending lower on the day. but one analyst says, wait a minute, everybody take a breath. this is one day. the trend is still positive for social media. because you know what? people are using social media. advertisers are advertising on social media. advertisers are spending money on social media. so the trend in the long term is positive. this is one day and the suggestion from analysts is, give this some time and let's see what happens. look on the bright side. zynga, when zynga went public in december of 2011, its ipo price was $10. guess where it closed? it closed 5% lower. $9.50. so at least look on the bright side. facebook didn't end lower than its facebook ipo price. >> and remember, too, to be fair. there are a bunch of people in menlo park, california, who are now millionaires. people who have been investors for a long time. thanks, alison. >> i finally tweeted something out today for all the facebook haters out there. this isn't a public vaccination. if you didn't want to buy facebook stock, you don't have to buy facebook stock. felicia taylor's on the floor of the new york stock exchange. phylici phylicia,, let's talk about something for a second. there was definitely something up with the trading, as alison said, at nasdaq. you know, for us old-timers, that didn't used to happen. >> no, there's no question about it. thank you for including me in that group of old timers. that was really sweet of you, ali. but what was fascinating was to be here on the floor of the stock exchange and to watch what was going on on friday and see the traders literally huddled around their the terminals, watching that penny point move. and you could see it that the action was in there. as we've talked about, underwriters come in to make sure that that stock didn't go below $38 a share. that was their job. that's what they were supposed to do. and they did it effectively. day traders were coming into this stock and hammering it and pushing it. there was a lot of short covering at the end of the day, which is it's interesting to the see so much activity in facebook stock and its first day. get a load of this. 567 million shares traded on this first day. only 421 were offered. compare that to 1.1 billion shares that traded on the entire new york stock exchange. it was a 20% part of what happened at the nasdaq. that traded some 2.6 billion shares today. >> apple on a given day will trade 25 million shares. this is ten times what microsoft would do in a day. which means it turned over. so here's, felicia, what i think it means. and that is that all those early stage investors, or many of them, and we'll talk to one in a few minutes. many who are venture capitalists who want to put their money into a company for a few years and take the money out of it were bailing out. they were getting a good price for their stock. it's a price they thought they would get and a whole bunch of new investors came in. >> if you were one of those guys that got in on the ipo price, that was fine. you did absolutely fine. it went up to $42, $45 a share. but it's moving forward and taking this story forward. a lot of traders on the floor here told me they expect that this stock is actually going to dip below $38 a share. is this something that individual investors really want to get in on? i would venture to say that right now, that is too uncertain to say. you don't know where this stock is actually going to value out. we don't know where their earnings are. they may be able to make money, but we don't know where that growth is coming from yet. >> that said, if you were a retail investor, you could get into a big stock at the ipo price. something we said wasn't likely to happen. >> felicia, stay there. let's bring into some of those people who trade stocks for a living. ned reilly, craig shapiro, matt mccall. i want to the ask each of you the same question. ned, i want to the start with you. we know this thing came in lower than most people thought it was going to come in. can i, or i being my viewer, the retail investor, make money by buying facebook at this price? basically, ty po price? >> well, i said it last week and i'll say it again. this is not the kind of stock that a retail investor should be in right now. there's too many questions about the business platform. the price it's selling at is a price earnings ratio that's just astronomic. and this management team has done a great job of getting the audience. now the problem is shifting from the desktops and the laptops over to the mobile devices. and as we've been talking about, mobile devices don't carry a lot of ads right at the moment. so these are critical questions that the company, not only this company, but others in that so social space, as well as some of the bigger, more developed companies like google, have got to answer. and how do i figure out how i'm going to capitalize on that mobile device later on down the road. >> craig thshapiro is the ceo a president of the collaborative fund. he's heard your argument before, because he's been in on it. craig, i know you disagree with ned. both of you thought this thing would end up higher than it was today. if you thought it would end up higher and it was a good investment last week, i would have thought this was a screaming buy at 38 bucks. >> i do. i couldn't disagree more with ned, and respectfully, but i think -- i'm actually happy to see the price where it's at. i think it's a fairly traded stock and i think it's an opportunity for a retail investor to get in. and if it's a retail investor looking to make a quick dollar, i think it's a problem. but if you're in -- you want to be in a company for the long haul, i still think facebook is a great, great company with a lot of potential. >> matt mccall, you also didn't think -- you also thought it would be higher than it is right now. who are you siding with? ned or craig? >> i'm going to go down the middle here, but i'm going to lean towards ned. i did say -- i didn't like the stock, i wouldn't buy it on the first trading day. i was thinking about this today. this is one of those stocks, when a girl who did my makeup and texts me and asks if i should buy it, it's a cocktail stock at a cocktail party. people talk about it. it doesn't make you money, though. it's great to talk about. you look at valuation. ned mentioned p/e rat. look at apple and google. they have p/e ratios below 20. >> it is a high p/e, but we'll talk about that. you boy stass stay there. should you invest in facebook's future? that's the question i'm posing to one of the tech world's elite entrepreneurs who just happens to be a former employee at facebook. that's next on "your money." every communications provider is different but centurylink is committed to being a different kind of communications company. ♪ we link people and fortune 500 companies nationwide and around the world. and we will continue to free you to do more and focus on what matters. you know what's exciting? 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[ male announcer ] we are insurance. ♪ we are farmers ♪ bum, ba-da-bum, bum, bum, bum ♪ if you're planning to buy shares of facebook, issued know what facebook is selling. it's you and your data. more than 900 million people use facebook. that's around three times the total population of the united states. facebook's user base has quadrupled four times over the last three years. facebook has 100 billion friendships. users leave 2 billion likes and comments each day, 2.7 billion, actually. facebook is also the world's largest photo sharing site. users upload 250 million photos every day. all that data allows facebook to offer highly targeted advertising. in 2009, facebook made 98% of its money from ad sales. that dropped to 85% last year, $3.7 billion. sounds like a lot, but facebook makes less than $5 per user each year. google makes more than four times that amount. so facebook needs to convince investors that it can turn users into money. davemorin was an early member of the facebook team. he's the co-inventor of the facebook platform and facebook connect. before that he worked as a marketing manager at apple. dave, back. facebook needs to continue adding new users or get more money out of each user. we know the company plans to tap into the mobile ad market, but how does post-ipo facebook grow, grow well, not alienate users, because it's got to poke into them a little bit more, not to use a facebook term, but it's got to get into their business a little bit more. >> i think the important trend to take a look at right now is the shift to mobile devices and to the mobile internet. you know, the desktop internet was really only about 1.5 billion personal computers. and the data says that there's about 5.5 billion mobile subscribers in the world today. so in terms of growth, facebook really has to start looking at the shift towards mobile and, you know, looking towards users that are on the mobile side instead of, you know, just focusing on the desktop. and i think they're starting to do that. but, that's really where the growth is going to come from. >> all right. i'm an avowed facebook admirer. i'm not that much of a user, but i love the concept, i love what it could represent. what i get a lot of on twitter and the criticisms of the tech world is full of criticisms that failed in the internet space. right now facebook has the edge, so did aol once, and myspace. aol and myspace, we don't talk about all that much. what does facebook do to make sure it's in the right space, which it probably is, as you described, but that it dominates that space forever more? >> i think facebook's focus on the user first and creating a real core utility for sharing information and communicating, that's been a big part of facebook's success so far. that's how they've won against competitors in the past. going forward, the major area where facebook has to focus is on the platform, and, you know, continuing to provide tools for third party businesses or marketers, even businesses like us at path to build out new and unique and interesting businesses and apps, whether that be mobile or continuing on the web, you know, facebook really has to continue to empower the platform, so that the network effect of businesses that depend on facebook is just as strong as the one around users. >> hey, dave, it's christine romans. i want to ask you a little bit about the cult of mark zuckerberg and what happens there in menlo park. you know, he's one of the world's wealthiest people now, but you wouldn't know this if you met him on the street. the company-issued hoodie and the like. and a new article in "the new york times" says zuk excepts that same attitude from all of his employees, "peer pressure dictates that consumption be kept on the down low. it is understood, say facebook employees and their friends, that mr. zuckerberg would find it uncool for one of his underreligions s to drive a lamborghini to the office." is it true, there's a culture about not flaunting this newfound wealth? >> i would say that's not just a facebook thing, but a silicon valley thing. silicon valley has always been a place that though there is a lot of wealth created, people try to sort of behave in a more humble -- >> why do you think so? why do you think? >> well, i think that it's not entertainment, you know? >> it's not wall street money. on wall street, it's -- >> selling -- >> they go nuts when something happens around here. you're saying it's different. you're not going to see a bunch of blinged out watches. >> i think one of the key differences is that because the culture of silicon valley is so rooted in entrepreneurship, what you see people doing with their wealth is instead beginning to reinvest it into the ecosystem and to help drive innovation with new entrepreneurs. and i think that the second thing that you actually see quite a lot of is philanthropy. and you know, one of the things that's quite encouraging to me about the early facebook crew is that because the facebook mission was so socially focused, you know, there's a lot of folks in the early facebook crew that are really starting to approach the philanthropic space in a really unique, almost facebook-like way. people really want to help make it better and help make the world of philanthropic giving as we did with the social fabric. >> and mark zuckerberg could end up being one of the great philanthropists of our time. he started with this big donation no newark and what cory booker is trying to do with their schools. but do you think mark zuckerberg will be the ultimate leader of this company? he controls most of it still? is he the right leader for a facebook that's now public and is going to keep growing or try to creep grkeep growing? >> i think mark could possibly end up one of the great philanthropic leaders of all time. his co-founder, dustin mosquovitz, has already planned to give away most of his wealth not when he dies, but before he dies, very aggressively. he just started good ventures, which is a big new philanthropic foundation. so i think you're seeing the leadership not just say that, but start to take actions in that direction. as far as mark being, you know, the long-term leader, i think the answer to that question is yes, you know? i think mark has shown a great tenacity in sort of how he's led the company. he's proven that he knows when to innovate and how to innovate and how to push the company forward, at the exact right times and, you know, he really has inspired everyone that's worked with him, including us. you know, we take a lot of his lessons around staying focused, on building for the long-term, and sort of striving for, you know, building really a team driven by excellence. we take that into account at path every single day. >> dave, good to see you. thank you for joining us. appreciate you sharing your wisdom from the inside with us. dave moran is the co-founder of path, one of the former facebook employees, one of the developers that give you the experience you've got. when we come back, there's really only one reason to buy a stock of a public company, and you now have a chance to buy facebook at pretty much the price that all the big guys had a chance to buy it at. should you or shouldn't you? 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>> i'm still in it. >> mark mccall is the president of penn financial group. craig is all in about facebook. matt and ned are not guys who shy away from the market. they're a little lukewarm on this whole thing. ned, i'm going to do what i said to felicia. we're old-timers in this whole thing. we didn't know about the world of investing through the internet. we started with buggy whips. we've got to get with the future, ned. are you just grumpy about the internet or is there something about faceboo