Michael Kors and Zynga Go Public

Debra Borchardt takes a look at two Wall Street IPOs.
3:47 | 12/15/11

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Transcript for Michael Kors and Zynga Go Public
Wall Street is abuzz today over two IPOs Michael coarse clothing company went public today in fact the man himself helped ring the opening bell on the New York Stock Exchange -- -- group they're looking. Quite dapper. And so. Network game makers saying that is set to start trading tomorrow to talk about both his IPO expert Deborah -- shark from the street -- aggregate to see him so let's would Michael course because so far the stock seems to be trading as well as as close as popular. Right it was oversubscribed -- price it above the intended range it treated above that. Really popular it's been a very good spot for for the company today and I think that most of the investors are comparing it to coach. Because they're very similar lines the stores and host cell licensing so. I think that a lot of people like this stock and they liked the company and I think it's gonna do really well this. Is different from Zynga and Groupon and then -- -- linked in in the sort of social media IPOs that we've been talking about I'm. -- might it perform differently than those types of IPOs in this market. Well you really can see that this company has a lot of growth ahead -- that it has 200 stores it can grow even more stores. And that's what the point you and you made its bricks and mortar item it's a -- it's something you can really hold. Off. Tangible and it's not virtual money. And you can really start to. Plan your growth and plan your future with an online company. They say they're going to grow this than that amount don't really know if home is interested in buying shares of Michael -- -- injured -- and meet I'd say you could be state going into the stock because again when you look at it compared to college. It's selling or lower the coaches on a price to sales basis -- been phenomenal that company has knocked about the park every single -- You know if you look at those two and compare them I think that if you've got and the -- -- getting into this same kind of business but it cheaper. Price OK now let's -- social game maker -- there are set to start trading tomorrow and there's talk that it'll be priced at ten dollars a share. Do you feel that that is a reasonable. Price. Well I think this thing is going to come out that very high priced similar to what we saw with. Groupon and -- and and then you'll probably see this early pop but then it's probably going to come back down to earth now. Having said that lot of brand loyalty obviously they're gonna get -- -- of money that they'll while games you know going forward. But at the end of the date they could legally -- reliant on FaceBook they only get their money through faith. They don't get their money directly from the customers the customers pay FaceBook and FaceBook. -- 30% and give the other seven -- it. Hanging on how you think the value of FaceBook is that may determine whether you buy this stock tomorrow and who knows FaceBook may one -- say you know we're gonna change how the developers can do their applications on -- on our website. And completely. -- up -- as planned so but unlike Groupon Zynga is actually profitable. It is choosing it does have paying customers but only 2% of the people that pleasing -- gains actually pay into the company's -- That's not a lot of a lot of people actually giving them money and and they've got to keep that growing in and that's the part that no one knows that it. You get tired of farm bill. Not gonna give -- thinks it's so difficult isn't it have valued these sort of social networking companies. Right and Ed here's another example electronic arts or or even Nintendo. Some of these gamers that were hugely popular just a year to go not a popular at the very fickle and people get tired -- -- -- move on to the next one yet is -- a trend or is it real Deborah -- -- from the street thanks so much you.

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

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