Dave & Busters IPO Goes Bust; Fears About Facebook and Zynga

The Street's Debra Borchardt with the latest IPO news
3:00 | 10/05/12

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Transcript for Dave & Busters IPO Goes Bust; Fears About Facebook and Zynga
Stock markets have been on -- -- lately and yet a number -- recently listed companies are having trouble getting their share prices up. It's -- tell us what's going on -- -- reports art IPO expert for the streets Deborah thanks so much for joining us. We now -- not FaceBook and -- and a minute but first a bit of a surprise this morning. Dayton pastors are apt to say my four world and six year old son loves. -- to go public but IPO at the last minute what hearings that. I have to say I love the place -- but I have a thirteen year old but what apple at this company was loaded Dallack that it was supposed to go public and then it didn't so it withdrew. Completely and that makes you wonder I don't think that they're probably going to come back. But I guess what capitalism investors started to go in -- I don't think so not so fast and that they. You know take the temperature investors than must've felt that it you know that I was not a good reception so you don't think it's likely that company will -- -- -- not -- now I would think that they put that thought for months are right now is larger FaceBook effect going on companies investors. Are being more cautious now about their IPOs. Absolutely like -- that would Dave and -- confident that they would iPad itself Sony hamburgers and not says that I don't think they could have ever is old enough to get out of this debt. And so as you -- with FaceBook and Zynga. You know people realize with being that they really got taken to the cleaners on that spot and and then also with FaceBook. -- -- that take a step back and say you know. I love the company I'm -- -- all the time that doesn't necessarily mean it's such a good stocks -- now let's -- -- -- government and the stock is down about 17%. Today. It's lost about 75%. Of its value since its IPO. Is there any chance this company can come back for us now. I really doubt that because here's what's happening in this is what makes you know people so angry at Wall Street is you have a company line being that comes out that everything's great. Everything's wonderful. And they do a billion dollar -- thing with -- big -- Groupon. And that all the sudden things are not so great and and they came. Also following that -- with the secondary offering and that's what -- fighters bailed out they all got millions and millions of dollars in their pocket. And left a crummy stock in the portfolio of lots of regular people and that was. Just horrible thought it hit like -- you can't it be facing some lawsuits that you know maybe they should have come out -- things were so hunky -- at the beginning. -- -- that typical -- because what they could say is what we thought everything was going to be good you know I do say in all the disclaimers businesses. As best we can get than they do give you all the risks saying you know -- could get worse. But we all knew going into -- offering that people using farm bill last. That FaceBook was pushing their -- down lower. And that people just they didn't have any new games to get people -- -- right now speaking up FaceBook. You just brought -- yesterday they announced that got a billion users I believe that comes out to one and every seven people on the planet. Yet their stock is still well below the original price what is needed for tarmac here. What we first thought -- that billion number came -- that that was a great thing and and we thought about that number. And that this stock -- start to go what yesterday on that news that they knew that this faith that -- England is and boy that was it because. As much as FaceBook pushed down losing gains as as a choice -- game. There's still very dependent on -- revenue so every time you in a farm bill and bought something bought -- points or mafia wars or something like that. They got money from -- And so now that -- the -- boy things are bad and getting worse we'll let means wolf things are going to be. Let's you know good at FaceBook had to get less revenue certainly telling his replacement but what about some of these initiatives that promote their starting where people can spend money to send there needs top there. Friends news -- -- I thought that you know I don't know of people really wanna spend seven dollars to push their -- at -- picture from their vacation. I don't. It's only a small test you know I think that they key issue for them is going to be mobile advertising. They came out also earlier this week and that that the way we look at advertising. On line is wrong. -- where measuring it wrong and look at it our way. Also -- -- a little nervous to write but if they can start to figure out a way to monetize and actually. Make things work on the mobile with FaceBook and then -- got on the keys of the kingdom absolutely right Deborah -- at thank you so much for joining us today thank you.

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

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