Candy Crush IPO Craze

Steve Cortes on whether the next big IPO will be a trick or a treat
3:00 | 03/25/14

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Transcript for Candy Crush IPO Craze
Will Wall Street be is sweet on candy -- -- -- half a billion users and how should retail investors -- the next space IPO mania. Ordering and Steve court says he is founder of there appears TJ at a firm that provides research of the biggest players on Wall Street. He's joining us from Chicago know and Steve. What do you think it is candy -- -- actually -- -- the maker of candy brush that is likely to go public tomorrow what do you think this idea how. Yes -- -- its candy day on Wall Street but will it be trick or treat. For investors and you know I would first say that I do like this company it's it's priced reasonably compared to some of its peers object creators of things like farm bill and Zynga. But the reason -- price reasonably at least compare them is because it really is a one trick -- something digital is really completely reliant. On candy crushed and it is actually a mania 93 million people play this game worldwide. Every single day that's like every single German citizen waking up and -- candy crushing every day. Now having said that how the IPO gonna do honestly I don't know but I would caution regular investors IPOs are incredibly tricky and I think they're probably. Best left to Wall Street and to the pros. So tricky and you mentioned how big of a stake king has in this company I mean the fact of the matter is king gets 80% of its revenue from candy -- -- Even the elders of billions of -- -- games pleaded day they come up with another candy -- candy pressed to point out in order to continue making the kind of money they're doing today. That's right it's as I said I do actually like this story and my guess is -- there will be a sweet ending. For candy crushed but I think it's too risky. For most investors at least with any kind of real stake as far as investment I would also just caution -- IPOs more generally it's a good sign we've had a lot of big IPOs lately in the market not surprising given that were close to all time highs in the S&P 500. But I -- the risk there is dilution what I mean -- that is your offering a lot more stock up there and analogy would be. Compare to a sports league which sports leagues are doing very well the -- expanding go to new cities opened -- teams the risk there I think every every fan knows -- the -- there though is dilution -- too many teams. Is it is -- too little talent spread among too odd to many teams so I think that they would the risk of dilution the risk of over expansion in the stock market is significant we see lots and lots of big. IPOs. Steve one last question for you -- you -- Johnny Cash. I absolutely am and I loved walk the line movie as well that is the right answer because -- we have a very special treat thank you so much -- courts as for joining us from Chicago this morning.

This transcript has been automatically generated and may not be 100% accurate.

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