let's go "out front." good evening, everyone. i'm erin burnett. "out front" tonight, facebook face down. here are some of the headlines. drudge report calls it fadebook. the "wall street journal's" headline tonight -- bankers under fire as facebook slips. bloomberg -- zuckerberg's fortune falls $2.2 billion as facebook drops. to put it mildly, one of the most highly anticipated offerings in american market history hasn't lived up to the hype, at least not yet. but look at this. facebook's stock fell as low as $33 at one point today. that's down 11% in one day. the company has lost $40 billion in market capitalization since it opened. now that sounds like a lot of money. it is. i looked it up. here's the context nap amount of money is the equivalent of losing the entire companies of hewlett-packard and tlor rocclo day. poof, gone. nasdaq's ceo says he's embarrassed by the technical glitches that delayed the stock's debut on friday. the glitches kept some traders in the dark for more than two hours. one man with a lot of advice fr for mark zuckerberg is steve case, former ceo of aol, the first internet company to go public. had he some great times and not-so-great times. he's out tonight with advice for mark zuckerberg and a plan to get more facebooks in this country. steve, great to see you. i know you've got to say i know how some of this feels wanting to pick on you. what do you think happened to facebook? >> i think it is a great company. it started eight years ago. now as 900 million users in the market cap -- it closed at something like 90 million. i think it was 10% from the offering. now it is about $90 million. it is amazing a company just started eight years ago has had that kind of success. aol went public 20 years ago. i think our market value was $70 million and we raised $10 million. nobody believed the internet was real. so it is great to see a coming of able. facebook is a terrific brand and mark and i think they've done a terrific job. >> we were using the number from the first opening tick. i think -- i understand what you're saying as well. let me ask you this. you've been in this position where you were the wonder kid and everything was great. then when things weren't great everybody wants to pile on, like i said there is this shad and freud. what should mark zuckerberg do? >> what he is doing, focus on the product. ultimately markets go up and down. we saw that with aol. a decade later it was $150 billion. a couple thousand users to 20 million users. as long as you keep focusing on the product and keep innovating, that's what really matters. you can't pay too much attention to the stock price. >> one of the parts of the facebook story really connects with what you are doing in washington. edwardo savron, one of the co-founders of facebook, a billionaire, was born in brazil, came to the united states, became a citizenship and now wants it renounce it and move to singapore. obviously there are some in congress who say this is to avoid taxes. he said it isn't but it's become a big topic of conversation. you want people like him to stay in this country and you're doing something specific about it. what is it? spl it is really broader than that. i'm not doing it. four senators tomorrow morning announce the start-up act 2.0. senator warner, sneert kun, senator rubio and senator moran have worked together in a bipartisan way, two republicans and two democrats to build on the jobs act that passed with overlmg bipartisan support and signed by the president about a month ago. that focuses the start-up act 2.0, focusing particularly on winning the global battle for talent. we got to make sure we attract the best and brighters. those are the folks who start companies like facebook and google and yahoo! and so forth. we want to continue to be the lead. we've got to win the battle for talent and make sure we get the best engineers and best entrepreneurs coming here, working here, starting companies here or joining fast growing companies here. >> i looked at some of the numbers. they were pretty stunning. according to the census, 16.5% of people in this country over 25 were not born in this country. but yet about one-third, a little bit more, of the engineering degrees in this country go to people who weren't born here and just about one-third of other science, technology, math degrees also go to people who weren't born here. now obviously a lot of those people are going to go home. i believe as part of bill, would you explain how it works, there wouldn't be quotas anymore for people from china or india who get to stay here once they get their degrees? >> these senators the issue specifically are talking about immigration, the stem visa and an entrepreneur visa. on the stem side -- stands for science, technology, engineering and math. it is really getting people who are coming to this country to get ph.ds and masters degrees from some of our great university. often once they get those we kick them out of hour country to start companies there and compete with companies here. stem visa encourages those people to stay. we've given them this great education. why should we kick them out? the equivalent if we get people from china to go to our naval academy and then kick them out to go help the chinese naval academy. obviously immigration is sensitive. there are a lot of facets on it. but making sure the best and brightest entrepreneur and engineers are attracted to come here -- because they are job creators. technology companies typically are started by first and second generation immigrants. i'm grateful these four senators are coming together. it is a tough climate, but they are coming together to focus on entrepreneurs and make sure we remain the world's most entrepreneurial nation. >> i think we all want that. this is right in the center of the presidential election as well. i want to play quickly a xlergs the president started running today about mitt romney. get your reaction. here it is. >> bain capital boss, that was a whole different story. armed guards at the doors. did not look at anyone. did not speak to anybody. told us we were all fired. >> steve, you're ane know vater, an entrepreneur, you're also on the president's commission for jobs and competitiveness. what's your reaction to those sorts of ads? on balance, from your view. is private equity good? >> it is what the president calls the silly season of politics. i think we're in that zone. it is going to be a tough contested presidential race. i guess it should be. but i think the focus for us right now should not just be on politics but policy, making sure we get the policies right. that's why i'm focusing on the work of these senators to come together to try to put the entrepreneurs first. there is a time for politics and a time for policy. my focus is on policy particularly around entrepreneurship. >> steve case, thank you very much. we'll head "out front," an investigation into the dark side of horse racing. tonight the alarming allegations against the trainer of the triple crown hopeful -- i'll have another. an then, iran. new threats tonight from prime minister benjamin netanyahu of israel about iran's nuclear program. and a major accomplishment in the recovery of the young woman battling a flesh eating bacteria. it's claim one of her legs, it's claimed her hands. but there was a break-through tonight. ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism. or creates another laptop bag or hires another employee, it's not just good for business, it's good for the entire community. at bank of america, we know the impact that local businesses have on communities. that's why we extended $6.4 billion in new credit to small businesses across the country last year. because the more we help them, the more we help make opportunity possible. in here, great food demands a great presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. 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[ woman on r♪ bum-bum,stinct ] bum-bum, bum-bum ♪ ♪ bum-bum - ♪ ai, ai, ai - ♪ bum-bum - ♪ bum-bum, bum-bum - ♪ [ ice rattles rhythmically ] ♪ bum-bum, bum-bum, bum-bum ♪ ♪ [ imitates guitar noise ] ♪ [ vocalizing up-tempo heavy metal song ] ♪ [ vocalizing continues ] ♪ [ all singing ] the redesigned, 8-passenger pilot. smarter thinking. from honda. tonight a record. missouri based movie chain amc is now a chinese company. private equity groups include -- oh, yes -- bain. the biggest ever chinese acquisition in america. buyer is china's wanda entertainment group. price tag -- $2.6 million. amc is big, 346 theaters, more than 5,000 movie screens. thanks to that, wanda is not just china's biggest movie operator but the world's. before you get sad and bemoan the chinese takeover of the world, you know, think of it this way -- china wants movie theaters because the world loves to go see american-made movies. which brings me to our number tonight. $1.2 billion. that's how much the "avengers" has made worldwide since its release on april 25th. i remember the old days when american movies got released in london weeks, maybe even a month after the united states. "evita" was the one i waited for months when i lived there and all my friends at home had seen it. but now movies go overseas where all the people are first. i'm betting now that amc's chinese beijing might get "avengers 2" before london or new york. our second story "out front" tonight, the man who's just one race away from winning the triple crown. is something that hasn't happened in 34 years. i have to say, by the way, every year it almost happens, i wait, i watch the belmont and i'm sadly disappointed. i'd love a triple crown winner but this horse is facing serious accusations. the owner is. of using performance enhancing substances on some of his other horses. trainer doug o'neill and his champion horse could be barred from the upcoming belmont due to charges of milkshaking. just explaining what this is, this is the term for any illegal blend of baking soda, sugar and electrolytes. it is usually poured down a horse's throat or fed through its nostrils before a race and it is said to make the horses faster. at least from what i could see, faster when they're running sort of over a mile. so that would be the derby and most certainly the belmont. which is obviously significantly longer. o'neill is no stranger to milkshaking charges. his horses have tested positive on four separate occasions. the most recent violation two years ago at del mar in california. ed lavendera has been covering the story for "out front." i've been reading about the milkshaking. if does seem to be shown to be effective on horses going faster on stretches like they race in the triple crown. does it really work? >> that's a good question, erin. i've been trying to figure that out throughout most of the day. looking back at some of the cases that were brought against -- violations that were brought against doug o'neill in california, this is a trainer who has roughly about a dozen violations across the country over the last 10, 12 years or so. in looking back at the case history of these california vial lagsz, in cases that were brought against him, a number of horses, one finished last in a race so it is not exactly clear just how consistent milkshaking and effective it is over the long haul. i figure if a horse finishes last, the milkshaking in that particular case didn't have much of an effect, if any at all. >> i know you spent time today speaking to the trainer's brother. what did he say about the aelss that we're hearing now about i'll have another? >> this is kind of a fascinating story. imagine this trainer who has been considered in the horse racing industry a good trainer. probably above average. but this is a kid whose father used to take him to the horse track. his father was a better. graduated from high school, went working in the horse racing industry was a groom. as a horse walker. then worked his way up. so he's at the pinnacle of this incredible moment in his career. and now kind of dogged by these questions. and his brother who's worked in tandem with him, and together found this horse i'll have never and bought him for $35,000, they're on this great pinnacle and yet they're kind of dodging these questions or being dogged by these questions and they say, look, we have he never milkshaked a horse in our lives. listen to them here. >> originally the thought was you had to milkshake a horse -- we had to actually google that to find out what that meant. nobody's ever been caught milkshakinge ing ing a horse as know. doug sure hasn't. we wouldn't know how to do it. it's never been done by us or anybody in the barn. >> erin, his brother says that doug o'neill's actually taking much of this very difficultly. it is weighing on him heavily as he gets closer to the belmont. >> thank you very much, ed lavendera, i hope it ends happily because it would be great to have a triple crown again. next, democrats slamming the president and his campaign for going after mitt romney's record at bain capital. you just heard steve case's view on that. cory booker seems to agree. president responds to the criticism tonight. and her actions led russia to temporarily block americans from even adopting russian children. but now there are new problems for the tennessee woman who sent her adopted son back to russia her adopted son back to russia on a plane by himself. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. are you still sleeping? 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(growl) we invite you to get a free sample and try one on too. our third story "out front" -- the president. he says attacks on mitt romney or his work at bain capital are fair game. >> mr. romney is responsible for the proposals he's putting forward for how he says he's going to fix the economy, and if the main basis for him suggesting he can do a better job is his track record as the head of a private equity firm, then both the up sides and down sides are worth examining. >> okay. but not all of the president's supporters seem to agree with how he has done that investigation so far in his advertising. here's new york mayor cory booker yesterday on "meet the press." >> this kind of stuff is nauseating to me on both sides. it's nauseating to the american public. enough is enough. stop attacking private equity. stop attacking jeremiah wright. this stuff has got to stop. >> he continued to say why is he going to pick on private equity? hours later though, there he is. >> let me be clear. mitt romney has made his business record a centerpiece of his campaign. ep's talked about himself as a job creator and therefore it is reasonable and in fact i encourage it for the obama campaign to examine that record and to discuss it. >> john avlon, jamaal simmons, cory spoke from his heart on "meet the press." i'm sure what he would say in the u youtube in a thoughtful and considerate manner this should be discussed. if you're watching, cory, maybe i got it wrong but that's my met. the point is it is rather nauseating. >> yeah. look, the reason there was all this outcry is because he took the risk of breaking from partisan talking points and you're not supposed to do that but that's what people do when they have the courage to sort of say what they really think. >> he went out to actually say why private equity contributes to -- >> guess what? there is a positive and minus. but the point is that the overwhelming tide of negative ads intentionally polarizing people are already being subjected to does discuss people, it is nauseate, it is what people hate about politics. for calling that out all of a sudden he gets slammed by some folks forric disloyal. it is also called telling the truth. >> john, people hate negative politics but they also really, really respond to it. negative politics is as old as politics in this country. first real campaign that we had with tom jefferson and john adams, i mean they were questioning each other's manhood. this goes back a long way. people don't like it but they respond to it zprp it goes back to cicero. >> look at the roman analogies. you hear be with you jamaal. i hear you. but here's what everybody says if they're a political consultant and they use it to sort of say, look, i hate being negative but it works and the founding fathers did it. it is a rationalization. it does work but it also degrades the entire process and disgusts people. >> president obama has said he is not attacking the private equity industry as a whole, saying profit maximization is totally okay with him but there is a policy issue here. we are trying to get to the policy question and the policy upshot is this -- president obama wants to dramatically raise capital gains and dividend taxes. that will make it more likely rather than less likely that companies will load up with debt. that is, will is a big debt bias built into the tax code. it's not just pe companies incurring a lot of debt. president obama's actually going to make that worse rather than better. >> that's interesting. >> let's talk about that, guys.