tv CBS 5 Eyewitness News at Noon CBS May 18, 2012 12:00pm-12:30pm PDT
>> there are a lot of questions about this. good afternoon. facebook started out first with a record evaluation at well over $100 billion. the $50 billion more than ups. but not getting the big pot that a lot of people expected. reference started trading it was at a break-even point at $38 and rebounded 9% but has since fallen back. as you can see. just under 3%. most expectations were for a 10% gain today but there are a lot of questions about facebook regarding their financial. at the current evaluation it is treating 100 times over its earnings. that is a staggering number. for instance apple, the most valuable company in the world at $500 billion currently has a multiple of 13 times.
clearly facebook has to prove that can grow its bottom line more so than just its user base. it has problems with advertising, especially on the mobile side, they admitted they do not make as much money on the mobile side. also collateral damage on several other social media companies, linked in, groupon, all trading significantly lower. the maker of farmville and other popular games halted after it fell 13%, up tripping circuit burgers at over 10% .. once again, halted for a second time in treating lower by 30 percent. tied very closely to facebook. investors all around want to see the social media companies prove that they can make money in the future. back to you guys. >> thanks. it is not too often that someone can have the status update on the facebook page. the ceo status read " mark zuckerberg listed a company on nasdaq ".
as of last checked the company had 400 likes. >> facebook employees joined him in the celebration this morning at the company's headquarters and to continue live team coverage with ann mackovic in menlo park. what is the mood like outside of the campus? >> it is actually pretty chill, there has been no announcements or public statements from anyone who works here at facebook and have kept a tight on the media coverage. but we know that employees can to work early to celebrate this ipo. >> the nasdaq opening bell rang at 6:30 a.m.. mark zuckerberg did the honors from facebook headquarters about 200 employees looked on, gathering in the menlo park campus as seen from chopper 25. and as cop worth of mark zuckerberg would soar to $90 billion, many of his employees became millionaires this morning as well. >> it is fun and exciting.
he can take a picture of the facebook sign today, knows what it is like for facebook employees. he works for linked in which went public last year. >> it was a celebration. a lot of people say lot of hard work for these guys. they have been working very hard to build the company up. >> the stock started at $30 per share and is expected to ride the roller coaster of pricing all day. piquing interest around menlo park. >> my friends were talking last week whether or not we would buy. i'm not a big investor or anything but it is something that is interesting. it is so big you just want to be a part of it. as for a couple hundred dollars. >> 18% of the company is on the market. mark zuckerberg pills will own 56 percent of the shares. on his system page he listed fb on nasdaq. for the rate hike. >> i'm thinking about getting my own stocks. >> the pr people have said there
will be no public events. and no celebration for workers but you can bet that they will be partying after work. >> thank you. how could face up continue to thrive as a publicly traded company? >> the executive director of c- net joins us with what is next for the new kid on the block. what do you think? >> this is where the pressure starts for facebook. they have to continue to prove to shareholders. their focus is shifting now, and someone is going from users, to shareholders because, like we mentioned, the have to make money. they need to prove to wall street that they can make money. and i think that you may see some significant changes to facebook over this next couple of months and years. >> what are those changes that use of my see? >> there's no question that you'll see more advertisements on facebook. you just have to. and because they're not making a lot of money on mobile advertising it will have to
figure out a way to maximize advertising on the website. there has also been speculation about whether they will charge people to use a stock. i doubt in the short-term, and i doubt that it would ever just charge people to use the website but i would not be surprised if, in the next year or two years, they start charging for premium features. maybe photograph storage for uploading videos. something like that, or they can make a little bit of extra revenue. that would be a big test for facebook to see if users go for that or go somewhere else. >> a lot must not go on facebook on a laptop, but with a telephone. so that will have to fix that up a little more because there's not a lot of advertisements when you use a smart-phone and i think that will change? >> that is a big problem. on our website you could have seven different advertisements but on a mobile phone you can maybe have one and right now facebook has none. they definitely need to figure out how to make more money on mobile advertising and they need to make the mobile application better. that will be a huge area of focus for them.
>> this changes the game for some of the employees, will be hard for the company to keep those employees? >> you will definitely see a short-term exodus. there will be a lot of people that probably stayed at facebook while it was exciting, waited for the ipo, and now they will cash out and move on. that said, i don't think facebook will have any problem attracting employees and new talents. but you'll probably see some people, maybe even on the executive team, moving on in the next few months. >> all eyes are on this because it is like the superbowl of the stock market. and it is up by 1.3% now, just over 38 which was the offering price in the first place. >> that is an interesting development. some people say that means that facebook accurately priced its shares. that they did not leave money on the table. in some ways that a point to mark zuckerberg being a pretty good businessman. so that is a possibility but there are so many companies that depend on facebook, i am sure thethey were hoping for more
excitement. which would have boded well for future ipo. >> remember to stay with cbs 5 in cbs says that throughout the day for continuing coverage of the facebook blockbuster ipo. >> facing the toughest vote of his life, jurors began deliberations and the john evans case. >> new evidence released in the trayvon martin shooting death. what a police report now reveals about the conversation? >> a ring of fire. the rare sight that you can watch right here in the bay area on sunday. >> i am in the cbs 5 weather center. will we be able to see the ring of fire? will the,,,,,,
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killed in a collision with a big rig in fremont this morning. the accident happened around 830 a m. police say that the truck driver died in the crash while the big rig driver was hospitalized with non-life threatening injuries. investigators urged drivers to avoid that area. a san fransisco attorney might need to represent himself. dublin police have arrested spencer smith following a hit and run crash that killed a bicyclist. investigators found a black mercedes with damage to the windshield and front and at his home in san ramon. the 57 year-old bicyclist was believed to have been visiting dublin from china and was killed tuesday night's one doherty wrote. >> jurors deliberating in the corruption trial of former presidential candidate john edwards. so far they have asked to see several exhibits to help with their discussions. edwards is charged with six criminal counts including conspiracy to violate the federal election campaign act.
he faces up to 30 years in prison and $1.5 million in fines if he is convicted. >> we're seeing close-up evidence being presented in the trial of the murder of trayvon martin. surveillance video shows the victim buying a snack. crime scene photographs include zimmerman's facial injuries, is gone, and martin cellphone. recordings reveal witness reactions. >> one guy on top in the black hoodie was pretty much just throwing down blows on the guy. pan am a style. that pounding him on the concrete. >> prosecutors also released a recording of a phone call between martin and his girlfriend moments before he died. the girl told investigators that the teenagers sound scared. >> leaders from the largest economies will focus on the first and third world problems at the g. 8 summit being held at camp david over the weekend. they want to stop european financial crisis from spiraling
out of control. analysts are worried that if greece dumps the euro it could destabilize other weak european countries. the president is also announcing $3 billion in private donations to end hunger in africa. >> governor jerry brown appeared on cbs this morning, while there he had an in-depth conversation about california's $16 billion deficit. >> we're making some very drastic cuts. in almost every area of state government. hawks so we are going to start living within our means. something that has not truly happen for the better part of 30 years. >> the governor says that if voters do not approve his tax hike that more cuts will be built into the budget. well, from bay to breakers to a fire in the sky. the events that you will not want to miss this weekend. >> but first, no horror movie here. these are taking over a major league baseball game. >> the only thing that could >> the only thing that could mess,,,,
great. so, you're all set up. what's going on? installing cable. you know this is an ikea, right? yes, but look at this sofa! it's so comfortable. we don't want to leave. have you been living here? can i have dinner at michael's house? they're having meatballs. don't be back too late. you know it gets dark when they shut off the lights. okay. i can stay. you know, you can just buy the sofas and take them home, today. for a limited time, get up to 15% back on select seating.
and they found a better home for them. eventually they got to play a little baseball. >> just a few months ago bees swarmed at the airport in denver. >> i've seen a lot of uses for those vacuum's by never thought about these before. how do they do it without any protective gear? that is amazing. we are in for a great weekend. don't want to talk about rain and it is not going to happen. a lot of sunshine outside. just some patchy fog and that is it. already working on a nice day. 73 degrees right now in concord. 72 in livermore. 74 degrees in santa rosa and 70 degrees in san jose. as we had throughout the day we are sticking mostly sunny skies, just a little breezy at the coastline, nothing like what we had yesterday. tonight may be some patchy clouds but those will be along the coastline and as it, mostly clear skies england and then senator looking seasonal. high pressure sliding in across the bay area as we head through
the next couple of days. that means temperatures will be coming up a few degrees and we will see less winthrop the weekend. it will be fantastic. the pollen count moderate. grasses and oak, pa one blowing around the air. but the wind has subsided since yesterday. 60 degrees in daly city and 67 in burlingame. 70 in san mateo and sunshine 72 degrees, very comfortable temperatures in the south bay this afternoon. 76 degrees in campbell and 74 in san jose. a high of 80 degrees in gilroy. more eighties over the weekend as high pressure continues to build in. the rich will strengthen and the masters will be popping up very nicely. today 79 degrees in walnut creek and 67 degrees in alabama and about 69 degrees in oakland. plenty of sunshine there. as you make your way into the north bay, some others in the upper seventies. 76 in santa rosa. 73 in san rafael and plenty of sunshine in san fransisco, 65 degrees downtown and 60 at the
sunset. a bit of a breeze towards the afternoon. over the next couple of days the ridge of high pressure building in nicely, mid 80s in the worst spots, koula tumble along the coastline with highs in the '50s and '60s and course a lot of festivities. the bay bridge series going on between the giants and the a's. and do not forget, we have the clubs that will be taken place, a solar eclipse on sunday afternoon. and this is going to be special. we have not seen anything like this since 1994. it begins 5:16 p.m. sunday, the mass will come at 6:33 p.m., there may be some patchy fog along the because one but otherwise mostly clear inside of the day and valleys. >> i have a question. how do you watch it? >> you don't want to look directly at it, you can take a piece of paper or cardboard, poke a hole through it with a pen and put another piece of paper behind it and you'll see the eclipse. to not look directly at you convert your read that out. even though it will be mostly covered that is still putting
out a tremendous amount of what that can literally fry your eyeball. >> i remember my third grade teacher telling me that. >> i used to teach third grade. >> thanks. bay area baseball fans can gather at one place this weekend as the region's two major league teams go head-to-head. >> i will be at the game tonight, cannot wait. the a's and giants will meet for three game series. beginning in san francisco, starting tonight. first pitch 7:30 p.m.. the a's have a slightly better record this season and both teams are in second place in their division. >> . mob of thousands will descend on the streets of san francisco this sunday for the 101st bay to breakers. the 12 km run takes racers from front street downtown along a street, to the great highway, customs are optional, but highly encouraged. lawrence is getting ready for the run?
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they are imported. they're not grown domestically. but if you kick them out right, the flavor is incredible. let's talk about the election. when you buy them you want to make sure they have a nice creamy color. not to green. a light cream color, and you wanted sticky, that means it is fresh and loaded with sugar. if it is to smooth and do not buy it. when you bring them home you want to put it in the refrigerator. stories on the counter. the longer you have them on the counter the more right they become. other mellon's, when they're picked the sugar content stops but this continues. but when they're used to want to put them into the refrigerator right away. honeydew melons, in the market. just make sure you do this and have a nice feel, then in july. i'm your fresh grocer. always remember to eat fresh and stay healthy. i will buy a couple of these right now. >> queen elizabeth had a few people around for lunch. and by which we mean that roils
from bahrain denmark, luxembourg, and brunei. >> it is the largest gathering of four royals since prince william mary kate middleton. it was held to mark the queen's diamond jubilee. >> that kind of looks like your luncheon? >> the food was not quite as fancy as mine but close. >> there's hope for those that have been tough on their bodies. >> and health watch, a dye pack and turn back the clock and restore your body.