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He Nicole thank you very much some good news on this -- that.
Well more news -- -- -- on this Monday Yahoo! a diving -- -- the social media business CEO Marissa -- announcing a one point one billion dollar acquisition.
-- Tumblr that's a very popular blogging and social media.
Network -- can -- profit off of this where is the next big acquisition of the -- actually care about deals like this anymore.
I got my view wealth manager president chief investment strategist David Dietz and you -- talking about the numbers.
And how they value Tumblr but if you look at the Robin is the valuation isn't quite parent -- opinion.
-- he does really make sense remember these companies have no profits at this point to your best metric for valuation.
It -- matter revenues -- last year they just had thirteen million dollars to revenues first quarter of this year thirteen million seek him the benefit of the doubt.
Four times thirteen expected to -- good thing about twenty times revenues we even FaceBook is.
Is selling at eleven times revenues you know half the price so you know they've really got their child -- make this profitable given how much you're paying for.
Marissa -- coming out to -- future repeated actually twice we're not gonna screw this up.
We're gonna leave the CEO plays his 26 years old we're gonna let her run a company nothing is gonna change then why do this if you can incorporate at Tumblr -- to a Yahoo!.
Why would you spend one point one billion dollars.
Well you know yeah eyeballs Edwin -- the -- -- -- and they're all moving to social media it's that this that this is Yahoo!'s attempt to kind of -- where the market is going.
But is much as I admire what -- -- doing it Yahoo! and she has started to turn the company around the fact the better to real challenges is how do you keep it cool.
And yet at the same time insert the advertisements insert the commercials to monetize it can twenty effectively got the -- you just like I don't wanna put up with that I'll go out elsewhere she should call.
Mark Zuckerberg and asked that same question likely an -- one things that we've been talking about as a potential IPO for Twitter and no confirmation about will -- we know the banks have been hired but it could be months maybe years a white.
Same thing with Twitter you were looking at the possibility that -- you say again the valuations aren't there for this type of IPO investors to Iowa.
Yet the latest valuation -- back -- -- ten billion and they're hoping to get up to one billion of revenues by 2014.
So you still have a wildly overvalued company.
And of course like FaceBook there's been a sharp run up in the secondary market as some people cast out blacks and has bought in some afraid -- a lot of the low hanging valuation.
Fruit for night -- buyer will already be gone -- -- -- -- group.
Fun Zynga FaceBook you say all three of those disappointing IPO so watch out.
But to go to school you like Intel and I think that's interesting because Intel again been around for decades new management coming in the -- you're saying is Intel's ago here.
This couple Kallis first -- people are looking for yield here there's no -- in the bond market -- look for stocks that yield well here you got Intel three point 7% dividend they're only paying about two point nine and their ten year bonds so they could issue more bonds.
Buy back their stocked.
And that would be -- Smart financial move.
But on top of that you know first -- -- they've got the new mr.
Kravitz new CEO 31 year veteran just -- the reds on Thursday.
That's looking very good and finally this new silver -- Big knock on Intel was they didn't have a strategy to get their processes -- the mobile but so Vermont very low power consumption chip.
Even the skeptics are admiring of it so I hate and I'm putting my body behind Intel at the current level.
All right alike can help one thing I thought this is great you -- -- and you're densities and you know what look -- -- at the pump prices because they're staying.
Nice solo that's a tax break for Americans -- -- you are betting on the economy you are betting on the -- Actually that's one thing this guy just got wrong they thought that the gas prices would be soaring this year in fact they've come down and of course.
The more the most important price in the US economy is that the Dow Jones Industrial Average is what the average consumer seats at the top of the pump that's been coming down it's like a tax break it helping offset that hike in the payroll -- I say ignore the delicate the S&P as well also become a bank and a -- and that when David needs that you very much for weighing in big news today on Yahoo! appreciate you being here my pleasure are done -- the golf.
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