STEPHANOPOULOS: We've only got a couple minutes left. Let's talk about Facebook a little bit. Last night, it turns out, Mark Zuckerberg married his long-time girlfriend, Priscilla Chan, just one day after that IPO that turned out, I guess, to be a bit of a dud. It started at $38, basically ended there, as well. And, George, as you and I were talking just before we came out here, the only reason it ended basically where it started is because banks came in to prop it up.
WILL: You know, and short -- a few days before they issued this, Facebook, which is about advertising -- it's not about pictures of your dog wearing a clown costume. It's about advertising at the end of the day. Three days before this was issued, the third-largest advertiser on Facebook, General Motors, $10 million a year, said we're not doing this anymore because we see no evidence that this is effective. That's a small tremor, but it could mean that the whole economic model on which this projected $104 billion company rests is faulty.
NEWSOM: And, George, let me just pick up -- you know, the economic model, I want to -- I don't want to be parochial here, but in California, we talk about the Facebook effect in terms of capital gains in the state. We're anticipating $500 million in this fiscal year, another $1.5 billion next fiscal year. The concern about what happened with Facebook or didn't happen as it relates to the IPO not popping was what happened with other social media companies. Their stocks plummeted, from Zynga, Pandora, Yelp, LinkedIn, and others, some double-digit.
And there's all kinds of companies now right behind in line, in the queue for similar IPOs. But there's two ways of looking at this. One is the more cynical way, which absolutely is right, that the underwriters propped up the stock and kept it at $38 as a baseline, or the more optimistic way is that they priced the stock about right, which in this day and age is actually a remarkable thing.
STEPHANOPOULOS: Yeah, that is, but Facebook's going to really have to grow. Look at these numbers for comparison. Right now, it's priced at 108 times earnings. That's versus 18 times earnings for Google, Laura. And it's making about $5 per use, $35 per user for Google. They have a long way to go.
INGRAHAM: A long way to go. And the IPO for Google, I believe it was three times earnings, so a much more reasonable valuation at the start. And, look, can I promote my Facebook page now?
Like, I spend a lot of time on Facebook just because I do it with my show and so I do a lot of Facebook. However, you -- you see that -- and Gavin said this in the make-up -- he didn't make-up, but I did -- in the make-up room...
INGRAHAM: ... that when you -- no, when your parents are on Facebook -- and I would say our grandparents are on Facebook, the kids are like, eh, maybe it's not such a cool place to be after all. That's -- maybe we'll do Pinterest. Maybe we'll move to the next wave. We're going to do more stuff on our cellphone that does not involve this massive outreach to people. We'll have more private Facebook pages or the next Facebook.
And so I think you got to -- you got to wonder whether this is just more of a passing phase.
INGRAHAM: As much as I like Facebook.
DOWD: I fear the best day, the financial day that Facebook may have had may have been Friday, because the revenue lines over the last six months for Facebook per user has gone down.