Transcript for Yelp, Internet Review Site, Goes Public
You're watching live coverage of the opening bell -- it's now ringing the bell this morning Jeremy Koppel. Now it's begins trading today on the exchange. Exciting day for that company there is the opening bell for this Friday march 2 -- god it's Friday hello everyone I'm Stephanie side. In New York futures were lower this morning retreating again from that thirteen thousand mark. -- -- -- discuss all the business headlines at this -- Matt Nestor co host -- break out on our partner Yahoo! finance. Matt great to see -- so let's start with yell the company raised some eyebrows with its IPO yesterday it sold shares. For fifteen dollars a make this. Well you know that's good that's a good indication you know that's also has to do allow an investment banking you -- -- selling a lot of stock then there's a lot of supply out there. If there's any demand what's -- that would tend to push things towards the high and we've seen these things come -- go lately an increasing number so it'll be interesting to watch you have to look at the big picture here this is a company that is. Been around for about eight years there are still losing money they do about I did about 83 million in sales last year -- -- compare. This stock which shall be worth -- takes a 900 million dollars not quite a billion dollars. On a price to sales basis. It trades at about ten times what it did in revenues but that seems like a lot it is a lot compared to that average company the S -- -- hundred. But FaceBook for example if it does a hundred billion dollars -- people are talking about when it comes public. That would trade at 25 times of two and a half times even more insane so we'll see how this thing opens but you know the strong demand because of the pricing. Doesn't necessarily mean that it's smooth sailing yeah. Here only if familiar refrain with these Internet companies -- which went public several months ago Manuel thought that was over prize. But it's risen 50% in less than three months so what's your assessment of that company now. Well in posing as an interesting one because again here you have a -- price pretty well it was a pretty tight in limited offering but then that -- sold off he could buy out on all you want a -- for about eight bucks a share. And then people started looking at -- as the FaceBook. Filing came out -- had this FaceBook related rally which really started to trigger trigger things and as you said the stock is up about fifty odd percent just this year alone so what we're -- -- analysts now say we're gonna hold on here we wanna see. What this company can do we know that its ties with FaceBook are too deep it's basically a one trick pony it's trying to diversify its business last week. Earlier this week rather we -- announce some deals with Pepsi and Wal-Mart for some you know gaming enterprises there but you know it's -- ten. Billion dollar company Zynga ten billion dollars in ConAgra for crying out loud or Xerox are worth about ten billion dollars so this you know little contact. Making actual stuff that you can touch. I'm sick so -- -- one of those old school company Sara Lee the maker of desserts we all know up. And more announced this morning that it's spinning off part of its business what are you hearing about this. Well it's -- it's complex that's what I'm hearing and we've seen this -- coming you know Sara Lee has been trying to reinvent itself for a long time. They have had. Tough patch if you will but -- -- -- -- -- war in the market likes it because there's going to be it's gonna end up with the US shareholders. Getting a special one time dividend of about three bucks a share which 120 dollar stock is a lot of money -- we take a look. -- what's gonna happen is there spinning off their international coffee tea business. But to do so -- they're gonna have that be a separate traded company in the Netherlands but. In between. The US shareholders will get a special one time dividend and then that stock will be released or that division will be released to become its own business of the US investors. Will ultimately get their money but it's been a long road from you know this company that's made everything from you know the coffee -- -- we talk about. Two coffee tea business and even on champion sweat shirts for while there as well. And -- and strategy there OK now to be outrage story of the day -- -- a lot of folks AT&T plans to slow down. Data transfer rates for customers on their unlimited -- once they exceed a monthly cap. Smart or dumb move did or did they just have to do this. The I guess they have. -- do what they wouldn't have done and they didn't have to -- clearly the growth. That we're seeing in mobile devices is so enormous that even all the money that. Not only AG -- all the wireless companies are pouring into building after infrastructure is not sufficient. To keep up with the data we're talking about seventy huge amounts of data you know we talked about the 1% with the occupy move -- this is the 5%. And these are people that use a what does it more than three gigabytes of data that doesn't mean anything but if you read into it that's. 15100. Minutes of streaming video on your mobile device. -- that daily on in a month 15100. Minutes that's a lot of video to watch on your cell phone or. A 150000. Emails in the course of the month if you go above that they're gonna hand break -- -- you wanna pay a little bit more money but. And other. It was sort of a free ride -- now if you have -- unlimited data plan right. Absolutely and even as so people you know some people love eighteen days of real gripe about it whatever depending on your device. You know there -- people that would just hang onto the father be like there's no way I'm given up this unlimited plan now spread it does offer the Eric. Comparable unlimited plan for now with. But there you know their network is smaller and they're not is -- -- widely available it's -- but you know again. Competition is a beautiful thing we haven't seen Verizon. Or T-Mobile for example -- answer -- their own plans but you know we'll have to see because they are all up against same problem. Which is that we all are using more data not necessarily three gigabytes of it but certainly using our mobile devices a lot more than. OK let's Europe some breaking news out of their leaders from 25 of the 27 countries and the EU have citing new fiscal packed. What are the implications of this. Well I hope they hope that we have signed -- agreed to have candidate come down and rubber stamp our budget that every year and you know they don't like our deficit than they can say you know go back. It's into session congress -- can do it again. Agony imagine that yeah. But of course we have our own currency still were not you know we're not altogether you don't supposed to bring them together. Closer politically economically there's a couple of dissenters the UK. Noticeably the Czech Republic is out and Ireland is in but they have to it still take -- Treaty if you will back to the back to the country to have a vote on whether or not. -- of the Irish people may say thumbs down to what the Irish politicians. Have negotiated as a good deal. Interestingly all this is happening on the day would Spain came out and said you know those deficit reduction targets that we work -- -- well we're knock on him. So you know it of Greece is still old you know in the forefront on the minds of everybody and you -- right on down the line of all -- ailing. Southern European countries so. You know. It's -- sticky situation it -- You know -- -- countries to to relinquish control of their budget that is a that is a big big step. Big issue of sovereignty if you ask me I mean eve seemed like such a good idea -- backed plan. OK let's take a look at the Dow -- and I talk about this because the -- been hovering really close to thirteen thousand for the last several days. We've been talking really -- for the past few weeks about it trying to break through that thirteen thousand mark which we've seen. Meanwhile the NASDAQ has been trying to settle above 3000 -- Did these numbers need anatomy house significance. Is significant is this -- I think. The NASDAQ 3000. Is significant. In edited it's more -- a multi year high after the back almost ten years really ten years before you saw the NASDAQ at that level so what is really broken out we we hope we can peel back to -- you know pre Lehman levels -- 34 year highs for the Dow and the S&P but yet. All the indexes have stalled here we need some sort of a catalyst is a lot of fear creeping into the stock market right now investors. Only want -- to go higher a lot of people are chased him they want them to dip back so they can have another chance that. Get in the water but the NASDAQ at 3000 is that you know pretty amazing statistic given DB and actually get through it. But just again I love context. Here this is an index that was once 5000 so it still. Well below its all time high you look at that awful -- charged from the attack bubble in 2000 and -- it's pretty astounding but you know it's had a great run. Nine weeks of gains in a row and it's up 30%. Not just you know 15% in the year to date basis the nasdaq's up 30% from the October lawsuits had a great little spread. Well we appreciate the context as well I want to -- to one other topic here before we let go which is crude prices -- yesterday but it was all because of a false report out of Saudi Arabia do you find this troubling. Yes I do. And it's interesting because you know it just goes to show that you don't know how geared. The market is and also points to the fact that the supply and demand balances are actually very very -- means Saudi obviously. A big contributor. To be you know global supply picture. But just say it in balance of just its pipeline disruption. Just adds to the -- majority in the marketplace so you know we did see a spike up it does you know show that the bias is more towards high then low. But you know -- saudis come out and say now that didn't happen so you know rumors are still out they have to be very care. And it really shows how jittery. And people are -- comes -- price is right now manifesto from our partner Yahoo! finance have a great weekend Matt you know terrorists.
This transcript has been automatically generated and may not be 100% accurate.