investors have just begun. welcome to "your $$$$$." i'm ali velshi, christine romans with me. we've been following this company with one thing in mind, after a troubling day for stock, can facebook live up to the hype? facebook, the most anticipated tech talk in history. from a startup in a dorm room to a global community approaching a billion people. facebook is the next paradigm shift on the web. first, the internet was defined by the portal, a one-stop shop for everything you needed. then came search, a single place to answer any question you could possibly ask. but facebook represents something different, the idea that the internet and technology can bring people together, and together the community you choose cure ates your buyer journey through life. is this the most important tool in the world or has it peaked. can facebook live up to the hype. if it really is a paradigm shift, can facebook dominate it. >> we brought together cnn's best time, dan simon in menlo park, california, where mark zuckerberg remotely rang the bell friday. new york nasdaq in new york and the new york stock exchange where they have been talking to traders. three trading we'll ask whether it's for you. crying shapiro, investor with the collaborative fund and an early facebook investor, and matt mccall president of penn financial group. >> dan, let's start with you. let's leave the stock aside for a second. that's a big topic. it is about the company. thousands turned out at menlo park friday morning to see mark zuckerberg kick off the first trading day. talk about the mood there and how it happened. what happened to the mood when the stock failed to soar like expected? >> first of all, as you can imagine silicon valley was buzzing over this stock debut for weeks. so much anticipation across the country. here you can feel the environment. you can 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, especially after coming off an all-nighter. they had a hackathon where they were trying to come up all night to come up with the newest and greatest ideas for facebook and they all met in the must be scare to usher in this new era. it was quite an event to see. >> again, this still remains the story of the company. it soon changed through the course of the day into the story of the stock. that's where we're going now. >> let's bring in alison kosik. a key question in social media, 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. when lou at how facebook traded on friday, yes, it ended flat. you have to remember it was hyped up quite a bit. the expectations were really, really high. with a lot of these tech ipos lately that's how it's been. it's been a lot of hype. especially when you see what happened friday. investors showed their displeasure in the fact that the facebook shares did not get that pop that they wanted. all these social media companies including zynga, yelp, pandora, groupon ended lower at the end of the day. everyone take a breath. the trend is still positive for social media. people are still using social media. advertisers are advertising on social media, spending money on social media. the trend in the long-term is positive. this one day. suggestion from the analyst, give it time. look on the bright side. zynga, when zynga went public in december 2011, its ipo price was $11, it closed $9.50. at least look on the bright side facebook didn't end lower than it's ipo price. >> a bunch of people in menlo park are millionaires. people did make money, people that had been an investor for a long time. >> i finally tweeted something out there for facebook haters. this isn't a public vaccination. if you didn't want to buy facebook stock, you didn't have to buy facebook stock. felicia taylor on the floor of the new york stock exchange. felicia, let's talk about something for a second. we don't spend a lot of time on it. there was definitely something up with the trading, as allison said at nasdaq. for us old-timer's, that didn't used to happen. >> no question about it. thank you for including me in that group of old-timer's. that was really sweet of you, ali. but what was fascinating was to be here on the floor of the stock exchange and watch what was going on friday and to see the traders literally huddled around their terminals watching the penny point move, 38.01 to 38.20. you could see the action in there. as we talked about underwriters came in to make sure that stock didn't go blow $38 a share. that was their job. that was what they were supposed to do. day traders coming in, hammering, pushing it, a lot of short trading at the end of the day. interesting to see so much activity in facebook stock in its first day. get a lot 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 2.6 billion shares today. >> apple on a given day will trade 25 million, microsoft 50 million. this is ten times what microsoft would do in a day. >> exactly, huge. >> which means it turned over. here felicia is what i think it means. all those early stage investors or many of them -- and we're going to talk to one in a few minutes -- a lot are venture capitalists who want to put their money there for a few years and take money out were bailing out. it's a price they thought they would get and a whole bunch of new investors came in. >> if you were one of the guys who got in on the ipo price, you did fine. it went up to $42, $45 a share. it's moving forward and taking the story forward. a lot of traders on the floor here told me they expected the stock is actually going to dip below $38 per share. is this something individual investors really want to get in on? i would venture to say right now that's too uncertain to say. you don't know where the stock is going to value out. we don't know where the earnings are. they may make money but we don't know where the growth is coming from. >> that said if you were a retail investors, you could get into a big stock at the ipo price, something we said wasn't likely to happen. felicia, good. stay there. let's bring in some of those people we talk about who trade for a living. ned, matt. i want to ask you the same question. ned, i want to start with you. we know this came in lower than most people thought it was coming in. can i, i being the consumer, can they make money at this price, basically the ipo price? >> i said it last week and i'll say it again. this is not the kind of stock a retail investor should be in right now. there's too many questions about the business platform. the price its selling at is 'st astro nomic. shifting from desktop, laptop to mobile devices. as we've been talking about mobile devices don't carry a lot of ads at the moment. these are critical questions. this company, not only this company but others in the social space as well as other bigger developed companies like google have to answer how do i figure how to capitalize on that mobile device down the road. >> craig shapiro an early stage investor, ceo and president of the collaborative fund. he's heard your argument before, because he's been in on it before. i know you disagree with ned. both of you thought it would end up higher tan it was today. if you thought it was going to end up higher and thought it was a good investment last week, you think this is a screaming good buy at this point. >> i couldn't disagree more with ned respectfully. i'm actually happy to see the price where it's at. i think it's a fairly traded stock. i think it's an opportunity for a retail investor to get in. 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 hall i still think it's a great investment. >> who are you siding with ned or craig. >> i'm going to go down the middle here but lean towards ned. i said a few weeks ago i don't like the stock, wouldn't buy it in the first trading day. when a girl that did my makeup text me and asked if she should buy it, the guy that fixed my scooter asked if he should buy it, it's a cocktail talk. if i want tech stop looks at apple, google, pe ratios below 20. values out there for good stocks, facebook isn't one now. >> it's a high pe. we're going to talk about that. where you choose to get into a stock. you boys stay there a little bit. we'll mix it up a little more with you after the break. should you invest in facebook's future? that's the question i'm posing to tech world elite entrepreneur who happens to be a former employee at facebook. that's next on "your $$$$$." 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over the last three years. facebook has 100 billion friendships. users leave 2 billion likes and comments each day. 2.7 billion actual. facebook is also the world's largest photo shark site. they upload 250 million photos every day. all that data offers 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. facebook needs to convince investor it can turn users into money. dave moran was an early member of the facebook team, a co-inventor of the facebook platform and facebook connect. dave, welcome. facebook needs to continue adding new user or get more money out of each user. we know the company plans to tap into the mobile ad market. how does post ipo facebook grow well, not alienate users. they have to poke into them. not to use a facebook term but get into their business even 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. the dat ark says thereto about 5.5 billion mobile subscribersa 5.5 billion mobile subscribers in the world today. facebook has to look at the shift toward mobile and looking towards users on the mobile side instead of just focusing on the desktop. i think they are starting to do that that's really where the growth is going to come from. >> i'm an avowed facebook admirer. i'm not that much of a user. i love the concept, what it could represent. what i get a lot from twitter and the tech world companies that failed in the internet space. 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 not only in the right place, which it probably is as you described, but that it dominates that space forevermore. >> i think facebook's focus on the user first and creating a really core utility for sharing information and communicating, that's been a big part of facebook's success so far, how they won against competitors in the past. going forward the major area where facebook has to focus is on the platform. continuing to provide tools for third party businesses or marketers, even businesses like usa path to build out new and unique and interesting businesses and apps whether that be mobile or continuing on the web, facebook really has to continue to empower the platforms so 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 about cult of mark zuckerberg and what happens there in menlo park. he's one of the world's wealthiest people now. you wouldn't know this if you met him on the street. the company issue hoodie. zuckerberg expects that same low key attitude for employees. peer pressure indicates consumption be kept on the down low. it is understood facebook employees and friends and mr. zuckerberg would find it uncool for one of his underlings to drive a lamborghini in the office. they shouldn't expect orders from conspicuous consumption in silicon valley from the newly rich. is it true there's this culture around this of not flaunting newfound wealth. >> i would say that's not just a facebook thing but silicon valley thing. silicon valley has always been a place though there's a lot of wealth created, people try to behave in a more humble, slightly more -- >> why do you think? why do you think? >> it's not entertainment. it's technology. >> it's not wall street. >> lamborghini and condominiums. >> the car dealers in the tri-state area goes nuts when something happens here. it's different. 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 because the culture of silicon valley is so rooted in entrepreneurship, what you see people do with their wealth is reinvest it into the ecosystem and drive more enapprehend yourism. one thing you see a lot of is philanthropy. one of the things that's quite encouraging to me about the early facebook crew is that because the facebook mission because so socially focused, there's a lot of folks in the early facebook crew that 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 a philanthropic giving as efficient as we did with the social fabric. >> it's possible mark zuckerberg could be one of the greatest philanthroperers at this time, already started with newark and what they are trying to do with the schools. do you think mark zuckerberg will be the ultimate leader of the company? he controls most of it still. is he the right leader for a facebook that's still growing or keep growing. >> i'll answer both questions. i think mark could quite possibly end up one of the great philanthropic leaders of all time. his co-founder dustin moskovitz pledged to give away most of his wealth, not when he dies but before he dies. he just start add big foundation. i think you're seeing the leadership not just say that but start to take actions in that direction. as far as mark being 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. he really has inspired everyone that's worked with him, including us. we take a lot of his lessons around staying focused on building for the long-term and sort of striving for building a team driven by excellence. we take that into account every single day. >> dave, thank you for joining us. appreciate you sharing your wisdom from the inside. dave morin, co-founder. when we come back, really only one reason to buy the stock of a public company. 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? we'll talk about it when we come back on "your $$$$$." for three hours a week, i'm a coach. but when i was diagnosed with prostate cancer... i needed a coach. our doctor was great, but with so many tough decisions i felt lost. unitedhealthcare offered us a specially trained rn who helped us weigh and understand all our options. for me cancer was as scary as a fastball is to some of these kids. but my coach had hit that pitch before. turning data into useful answers. we're 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. there's been a lot of interest in facebook's ipo new banks, newbie investors. i've heard from a lot of newbies investors. ipos, she'll tell you, a risky business. that's not a point i tend to make as much as -- >> i want to welcome back our panel ned riley, craig shapiro and early facebook investors. i'm thinking you're still a facebook investor or did you make like a bandit and get out. >> i'm still in there, 100%. >> president of penn financial group. craig is all in about facebook. he thinks it's a great idea. matt and ned are not guys that shy away from the market. they are lukewarm on this thing. ned, let me start with you. i'm going to do what i said to felicia. you and me and christine are old-timer's in this thing. we didn't know about the world of investment through the internet. >> buggy whips. >> wheat, things like this. we've got to get with the future. are you grumpy about the internet or is there something about facebook you don't like. >> i'll look at my slide rule right now and see if i can calculate a future price. that's what i started with. maybe we are grumpy. maybe you see all these great wealthy people out there. it isn't that. i really believe facebook is probably going to be a very successful company. i'm just not convinced that this price, this time i'd want to participate in what i call a rifle shot approach, own facebook or four or five other social media companies. because i was around in the 1990s when everybody thought technology was the thing of the future. >> it is, ned, it is. the internet is the most powerful tool in the world. >> i don't disagree. but the stock prices of some of those companies back then, people back to normal. these companies are still viable, good contributors today. i think what we've got to look at is facebook in the context of how you participate in the stock. look at mutual funds, exchange traded funds. i've been advocating the 3 qs, top 100 stocks in the nasdaq index for three years. i ended up with 17% in apple stock. i said that wasn't genius, that was purely accidental but apple was a success. if facebook is going to be that kind of success people are going to be. >> that's a very good point. >> i suggest diversification. >> you can buy etf like a stock, top 100 stocks in the nasdaq, and facebook will be in it. matt mccall you suggested the internet social media etf, socl is the ticker symbol and they get a piece of all these social media companies. i'll come back to you in a second, matt. this one is for craig. craig, we've had 31 internet ipos since the beginning of 2011. not the '90s ned was talking about, since 2011. 22 of those are trading below their closing price on the day they went public, 16 are trading below the offer price. the offer price would have been $38 in the case of facebook. so tell me as a guy who is an early stage investor, a venture capitalist, silicon valley, the odds are against these tech ipos. >> you know, it's unfair to lump facebook in with the rest of that group. i think it's its own unique beast. there's no other company really in the world. forget about the other ipos since 2011 that touches a billion people. people on average spend seven hours a month on facebook. they have billions of dollars in cash in the bank. it's not a typical ipo. certainly a different profile from the companies you're talking about christine i've seen a lot of hype, us hyping facebook stock. if anybody watched you and me, they will know full well christina has been the brakes, i've been the acceleratore largely to make opposite points. i don't think we're that far apart. >> in part because matt mccall. matt mccall was buttressing what i had been thinking. if you're an individual investor, give it a month and let it settle out. it's a price discovery mechanism, not a game for the weak at heart. you're absolutely right to suggest -- >> you don't have to rush in on day one, matt. >> that's what blows my mind. the way it seems it's been going friday, if you don't get into facebook it's over. you have years ahead of you to get into facebook, tomorrow, monday, tuesday. sit back and relax. one of the biggest things i tell my clients in investing, patience is a virtue in investing. let the stock pull back. i think it can come down to low 30s, high 20s. i might be a buyer of facebook. i make one point craig talked about. facebook is different you can't compare to other ipos. if i had a dollar sometimes everybody told me that. my goodness, it's different. 2008, 72 internet related ipos hit the market over $50 million. twenty of them priced above their original rate like facebook. average gain in those twox, 20, 59%, facebook zero. facebook maybe it's not like other ipo. >> poor craig, man, he's like a pariah for being a venture stage capitalist in facebook. i love the conversation. you guys are great. you represent all the viewers out there. i think america is smarter for having this process, understanding the ipo process. craig, ned, matt, stay exactly where you are. up next, you all know mark zuckerberg. if you don't, there's nothing i can do for you. turn the channel off. what about the woman behind the success? next on "your $$$$$." because, bad weather the price of oil those are every airlines reality. and solutions won't come from 500 tons of metal and a paint job. they'll come from people. delta people. who made us one of the biggest airlines in the world. and then decided that wasn't enough. but doesn't think walmart has all her favorite brands. you want to check it out? let's go. yes. ok, you're a gardener -- you're going to love this. low prices on round-up, miracle-gro -- it's a miracle! did you know walmart had the same great brands as every other gardening store? no, honestly i didn't. you know what'll really make your yard look great? 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[ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! mark zuckerberg is synonymous with facebook in the movie the social network made him more famous. many argue it's someone else who is the driver of the company's financial success. poppy harlow reports. >> you know the story. mark zuckerberg started facebook in his harvard dorm room. do you know cheryl sandberg? she's his right-hand woman. people say facebook wouldn't be where it is today without her. >> i was a really serious geek in high school. it works out. >> sheryl sandberg, facebook's chief operating officer, number two to founder mark zuckerberg. she joined in 2008 taking it from less than 150 million users to more than 900 million today. >> if sheryl hadn't been there, i don't think facebook would be going public today so successfully. she came in and basically created the business. she had a whole month's worth of meetings trying to figure out what business facebook was even in. >> a harvard grad who worked as chief of staff in the u.s. treasury department she landed next at google where she built the company's ad business. >> i think sheryl's main contribution was actually figuring out how to go from zero customers and a new channel to figure out how we were going to get a billion dollars and millions of customers. she built that from scratch. >> she's so important to facebook, the company's filing documents say losing her could harm the company. i interviewed her the day it become profitable. >> the big announcement we hit 300 million users. we're cash flow positive. >> as a fae mail that reached to the top of the corporate ladder she challenged young women don't ask, don't tell the same in the 2011 commencement speech for barnard. >> in a world where women ran half our homs and institutions would be a much better world. >> for this mother of two, balance is key. >> i walk out of this office every day at 5:30. so i'm here for dinner with my kids at 6:00. >> has she changed the culture at facebook, do you think? >> absolutely. her influence has gone beyond facebook. she's established a new way of doing things, a new culture to aspire to across all companies. >> she's changed silicon valley? >> absolutely. lou at oracle, a lot have a single leader, a guy with a single vision. we're seeing a shift from ego driven to leadership driven. >> people who know her say washington should be in the cards. >> i told her she should run for president. >> i honestly think she should end up in washington and on honestly think she could be the president, no joke. >> do you have political aspirations? >> i have aspirations to do something that matters. right now i don't think there's much more i could do than facebook. >> a big challenge for sandberg, she's going to have to figure out how to tackle all the users going mobile with facebook. mark zuckerberg controls the company with more than half the shares. if anyone can do this analysts tell me it's sheryl sandberg. she's the one who ostensibly built the ad business into what it is today. she's proven to do that thus far at facebook. you can't overstate her importance in this ipo. >> poppy, it's so interesting. she could probably have any job she wanted in silicon valley. she could probably be ceo of any company she wanted in silicon valley. do we expect she'll stay at facebook in the long-term. i know some of her compensation is tied to staying there a few more years. >> it is. she's got plenty of money. i doubt it's because of money for her. it's interesting, i was talking to david kirk patrick i saw in the piece, the facebook effect. he knows inside out, knows mark zuckerberg and sheryl sandberg very well. he told me he doesn't believe he would take it public without knowing sheryl sandberg would be by his side for not only a year or two years but a period of time. it's interesting their relationship worked so well as number one and two of the company, because she doesn't aspire to be ceo. she's fine being mark's deputy because she doesn't think there's anything more important. that's key, someone in that role not aspiring to take the ceo spot. >> jessie covered facebook for seven years. >> seven. >> written about it extensively, which is a lifetime in facebook years. >> i know. almost multiple. >> people buying facebook stock are almost betting on mark zuckerberg, is that a safe bet? >> today we saw people aren't sure it's a safe bet. i don't know about you but i was surprised what the stock did. >> it was a launch. in the end holding onto $38 a share. >> in the last week there's been smart coverage of facebook and people have been examining the business itself. when you look at the business it's just not a sure bet yet will that's not to say there's anything wrong with it. i think in the last week we heard for the first time actually they haven't quote got it figured out. this is not your next google. it's a promising start. >> you mentioned google. in 2004 google went public. a lot of people said google went public with room to grow. facebook goes public priced for perfection and sized for perfection. >> it would seem that, right? facebook, here is a company, it is growing, but it is growing faster than it is bringing in revenue, right? it's growing in markets where it doesn't make as much money. users picking up in brazil, india, places unlike the u.s. where it doesn't cost as much to ties. say what you will, it's a more mature business at this point. we know a lot more what we're getting when we buy it. >> bring up users, how much per user $2.80 off each north american user. you look outside north america, europe, asia, the average is lower $0.37. do they have a plan to increase that revenue for the rest of the world. >> they have a lot of plans we haven't heard about. what we're betting on when we bet on facebook, they have a strong management team and they have got the talent they they'd to unravel this pickle of a problem. we do know they launched an advertising strategy in february. it's just too early to tell if it will work well. >> you talk about management we just saw an amazing piece about sheryl sandberg. the combination of zuckerberg and sandberg is powerful. >> it's amazing. sheryl sandberg is someone you want on your side. she has experience making money off the web. she's done it before with google. >> thank you. >> thank you. up next, investment experts with free advice. pot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. we took a little time out here so the boys could stop ganging up on craig. ned riley, riley asset management. craig is a venture capitalist. this is what guys like craig do, put money into companies. i don't know if the rule applies a third of the companies you'll invest in will blow the lights out, do really well, a third will do nothing, a third you lose money on. i don't know if that's the right ratio of that's what you do, right? >> that's right, ali. just using facebook as an example, three venture funds have returned their entire fund just through facebook alone. >> so my concern is you guys are early stage. now facebook has entered a stage of maturity. generally speaking maturity means growth is lower and suckers like us invest in it and guys like you move onto the next thing. >> here is where i take issue with ned and matt a little bit. people laughed at peter theo when he initially invested. people laughed at yahoo! when they offered a billion dollars. people laughed at microsoft when they invested a $15 billion valuation. people laughed at goldman sachs when they invested in a $50 billion valuation. they are not laughing today. so when you hear ned and matt talk about, well, wait a month or invest through 3qs, it's more technical. the underlying values haven't changed. you've got an incredibly focused founder and ceo with a talented team building a potent product that reaches a billion people. >> if you're peter theil, think beauty it, half a million dollars to help this company get through its first summer, i think. you have to really take big risks and the reward is big. that's the whole point of the thing, right? >> absolutely. it comes down to risk tolerance. for the average investor if you're concerned about it going through a mutual fund or some exchange could work. if you believe in the company or potential, doesn't matter whether you invest today or next week or next month. >> let me ask you this, ned riley for two seconds let's pretend facebook isn't the only story out there. god forbid i'll have to talk about jpmorgan or greece, it's going to upset me. where if you're an investor and want to feel the juice of the market, the things that are working, the things that are growing. you don't want to have a depressed discussion how half isn't working, half in a depression, the other half slowing down. what would you recommend? you're telling me not to get into facebook, where would you go? >> ned, this was the worst week in stocks for 2012. the big story is facebook but this is a bad day and bad week for investors. >> that's a great point, christine, because with all of this about facebook and everything else, we've gorgt fon google was down friday. tech stocks got murdered. you wonder if facebook was the catalyst or the sentiment of the market. i like the market today. i think it's got a lot of potential. the answer to your question is i still like the three qs, they have companies rapidly growing, the ratio whether apple or google or several other tech companies out there. now, facebook has a high multiple but you can grow into it. remember companies like google were 60, 80 times earnings five, seven years ago. i'm not trying to pooh-pooh facebook. as a matter of fact, craig, i congratulate you. i think that's terrific. i don't have any of it. if you want to give me 25% of yours at a buck a share, i'll buy it from you. there is a sector going, technology. that is the area where people will make their money. >> ned has redeemed himself from acting like a dinosaur, like we don't know technology. we've embraced technology. hold on. when we come back, we've learned a lot about ipos, listings in public companies and talked a lot about technology. how do you decide after the facebook hype is over when to get in on a stock? i'll talk to the panel about that when we get back. all right, it's got what? 360 horsepower. 365 horsepower. let's see what that feels like. so this is 365 horsepower. all while delivering really great fuel economy. so we're getting great fuel economy? cuz that's what i'm thinking about right now. where they grow america's favorite wpotatoes. idaho, everyone knows idaho potatoes taste great. but did you know they're good for you too? they're high in vitamins and potassium. and idaho potatoes are now certified to carry the heart checkmark from the american heart association for foods low in saturated fat and cholesterol. so they're good for my family, and for yours. heart smart idaho potatoes. always look for the grown in idaho seal. okay. with us, our panel, and christine and i were talking in the commercial. the issue, you guys represent different types of risk tolerance. guess what? so do the two of us and all of our viewers. in the end, i think we all ag e agree. all five agree, you will not make money sitting the market out. so the question is, how you make decisions to get into the market. matt mccaul, if you are the average investor who gets -- got to be in the market but don't know too much about it, how do you decide how much you pay for a stock? >> a very, very tough question. it comes down to valuation. the amount of money that that stock makes. that's called earnings. earnings per share. you can relate that to the price of the stock. you get the price to earnings ratio. i mentioned earlier in the show, facebook trading about 100 points earnings ratio. apple and google, both below 20. apple below 15. >> a apples to apples comparison, no pun intended. how you determine one is more expensive than the other. invariably something is more expensive than something else. i can buy a sweater for $40 at macy's i mate pay $400 at prada, doesn't mean the prada one's overpriced, it means it's offering something different. put it in that prospect. is facebook the prada to macy's gucci? >> right. company b 15 ratio and one growing at 80% one buying at 10%. you better believe i'm buying the one at 80%. we're in a pullback. if i had a dime, let apple pull back to $5.50. now down to $5.30 in apple, you're afraid to buy it. you like that company, believe in it, buy into weakness. tough to do psychologically. that's how you make money long term. >> this one to ned. i think this whole story about facebook and people learning about what facebook does is a real great moment for investors. who may not be paying attention to their investments or may not even be investments. is there a bigger lesson about the public interest and scrutiny in facebook and what that tells us about how people should be invested? >> it is. first of all, you should know what you are buying and people do that with the facebook, because they've used it for so long. but there's another part of it. how much money do they actually make off of what they've developed as huge audience. they've been very successful in what they've done, but you've got to make money and eventually pay out of dividends and good someone return for that investment you make. the problem we've got, it's a retail investor, or if its an institutional investors, there's such a thing calmed emotion in subjectivity that normally supersedes objectivity, and i'm saying in a simple way, people are not very objective with their money. they get emotional, all tied up in and it usually make big mistakes. that includes a lot of sophisticated portfolio managers. i manager a lot of them. sell out at bottoms and buy at tops. i try to tell people, take the emotion out, try to be objective. buy when everything in the world looks like it's coming to end and sell when everybody's happy, a party going upon that's when you run for the hills. a lot of people don't adhere to that philosophy. when they start to lose, it's extremely painful. >> i've learned from you, philosophies prevail and a lot of ow viewers will identify with each of you. ned riley, craigiro and mark mccaul. and showed up for his meeting wearing a trademark hoodie, mark zuckerberg. a secret hiding underneath that gray exterior. weeb xplal next on "your money." it's very important to understand how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies. we told you about price to earnings ratios. just talked about it. how many users facebook has. there are a few things about the social network that you probably didn't actually know. ever wonder why the facebook interface is blue? turns out mark zuckerberg is red-green color pr blind and told liz veth vargas blue is the richest color. i see all of blue. he cannot see green. doesn't mean he's turned down a lot of green. four months ar the facebook launch in 2004, zuckerberg then turned down a $10 million offer for the company. that's according to "the facebook effect." >> maybe if they took the money he could buy new clothes. right? did you know mark's famous hoodie hides this secret. >> it's a thick hoodie. it's a company hoodie. we print our mission on the inside. >> what? oh, my god. the inside of the hoodie, everybody. take a look. what is it? making the -- >> making the world more connected. >> that's carrie from all things digital. takes off the hoodie. what's inside? the company motto inside and facebook issued. anybody on facebook can -- >> close to his heart. >> some are disappointed. some old school, generation x and above were disappointed when he went down the road show and was wearing a hoodie. >> i'd like to have seen nim a suit. i don't know what it would plook like. an invest matter, i think they've been responsible for leading a paradigm shift in the internet. if you believe you want your life experience curated by the community you pick, the friend you choose, people you follow and subscribe what he read, like and recommend, facebook could be the future. >> certainly the future for how you use the internet. is it the future for making money off the internet? that's the existential question.