Welcome to "market makers." i am scarlet fu.
I am tom keene.
We're going to talk about keying digital.
They go public tonight.
-- king digital.
They go public tonight.
Have you ever played candy crush?
It is pretty addictive.
I could not get beyond more on stage.
-- moron stage.
Will one hit wonder worries sour king's debut?
Ethan, welcome to "market makers." king digital has been around since 2003. it is cash flow positive for the last eight years.
They say it is not going public for cash, but for strategic opportunities.
Does it sound like cashing out?
I would not be so like to ascribing nefarious reason.
They have done incredibly well with this one game that they have.
Having the public currency to do that makes all the sense in the world.
Is this ipo linked to declining candy crush interest?
That is the $7 billion question.
What they have been able to achieve with that game is remarkable.
There is stuff going on behind the scenes that we do not know about.
When you look at this ipo and the idea of cashing out and the enthusiasm right now, when you look at this ipo, was the distinctive characteristic?
How is it different from zynga, facebook?
When you look at the red herring, what is different?
This is a stronger ipo then zynga.
I know people will draw that conclusion and say is this groundhog day?
Are we doing this again?
Zynga had a couple of things against them.
The market they were in was hitting its peak.
With keing and candy crush, it is mobile gaming.
It opens up a whole new set of options.
I agree with that.
Extrapolate that a broad.
Is this an ipo with an international future or just the more developed nations and the more developed world?
I would expect it will mirror the growth of mobile phones internationally throughout the world.
Whole nations are just converting over to smartphone technologies and they are going to have the same desire to play games that we have in the more developed countries.
I would agree with that.
A lot of people say that because of zynga's post-ipo struggles, space is stagnant.
Where do you see it and how this king -- does king digital fit in?
They can redefine a. they can show that this is not the zynga all over again.
They have to show that the success they have had to date with this game on the mobile platform, that is opening up a world of opportunity in terms of new mobile games.
The gaming market is growing at a pretty gargantuan rate.
Zynga could not grow any more.
The market was at a ceiling.
The struggles of finding revenue with twitter or facebook, would you presume that somebody could come in before the initial public offering and acquire the company?
Somebody has the confidence to get in the way of this?
This company did almost $2 billion in revenue last year.
The acquirers are ready limited.
I do not think there are any.
You look at the traditional game acquirers, they're not big enough to do an acquisition of this scale.
You could possibly -- the asian game custom -- companies, 10cent, alibaba, they have their own strategic activities going on.
Speaking of companies, this is a company that is less mature than king digital.
It is not that far along and is still unprofitable.
It has not given investors a whole lot of information.
What would you look for box to accomplish?
We are investors in box.
I cannot comment on that one specifically.
In general, the market for cloud computing is in trysting -- is interesting.
Once you sell a solution, it tends to pervade and stick around.
That is how people evaluate cloud computing in general.
I know you are in every latte bar, how frosty is the ipo market?
Everybody piles out with ipo?
I think we are in a heady time right now and i would be smoking something if i did not acknowledge that reality.
I think they are sound of businesses with good fundamentals.
I think they will show investors that they are worth the excitement that they are generating today.
I am not ready to say this is over froth, but there is a lot of enthusiasm.
King digital price shares tonight.
I remember the last time.
They would bring in perspectives.
You would end up reading them for hours on end.
It is beginning to look a little like that.
Them are coming up next, a fight that could only end up in one place.
We will hear from a ereo's ceo.
You can watch all of our interviews on demand on apple tv.
? aereo versus the big television networks.
They are expected to submit a -- tomorrow.
John erlichman sat down with the ceo at one of the manufacturing facilities in salem, new hampshire.
He is fairly unapologetic about his service.
This is one of the most fascinating stories.
You have an upstart going against a powerful broadcaster.
You can make the argument that there are billions of dollars on the line.
It does not worry the ceo of aereo.
If you are not successful at the supreme court level, is there a plan b? there is no plan.
We believe in our merit.
We think it is the right thing.
Rye grass is important.
The mission of this company was to create an open platform, to which the system open.
If we do not succeed in that, it will be a tragedy, but it is what it is.
You have seen this rollout of aereo.
They operate in markets like denver and salt lake city, or they did until they were forced to cease operations there.
We will see how things play out in the supreme court.
They're trying to get into as many cities as they can get into.
The broadcasters have threatened to move their networks to cable channels so that aereo cannot access them.
Is this an empty threat?
We will have to see how this plays out.
A lot of network executives will talk about that.
I think it comes down to what is it that the license they have for their broadcast network allows them to do.
If you are not serving the general public, that may help the argument.
There are millions of people around the country who are using an antenna to access cbs, nbc, and abc.
The technology that aereo is using is relatively simplistic.
If they want to replicate it, they can do that and maybe put ariel out of business.
We asked him about that.
Is a free country.
We invested a tremendous amount of money.
This is a very complicated technology.
I am not suggesting we are the only people in the world that can solve these problems.
They are not that straightforward.
Tomorrow, we're going to talk about this whole technology process, what do they put into the product and service to give you a behind-the-scenes look at all things aereo.
I find this to be a hugely polarized debate.
What is the single distinction of this court battle?
If aereo is having a direct relationship with the consumer, through the antenna, they have created technology that allows you to have a one-to-one relationship in the same way as if you had an antenna on your roof.
It is about each side's ability to make that case in court.
I have not seen a polarized debate like this in years.
This is a huge deal.
We may not get word of it until the end of summer.
Thank you, john erlichman.
Coming up, spring has sprung.
Why are we still talking about the lousy weather?
That is coming up next on "market makers." ? does mother nature has an equally extreme spring in store?
Checking the weather right now for new york city, it feels like three degrees outside.
Was winter as bad as it seems?
It was not that long ago we were talking about the polar vortex.
It was feeling like 20 below zero in new york city.
We will not see temperatures that cold, but it was a cold winter.
When we start ranking the winter season, this one came in and around number 34 when it comes to temperature.
We did see a lot of snow with this winter season.
Some cities saw the snowiest winters ever.
Other cities saw this winter as one of the top 10. it was a record winter for many places.
57 inches in new york this past winter.
There is still some snow hanging out by my driveway.
It is spring flooding going to be an issue?
Another place we saw a really cold weather for a sustained period of time if the great lakes region and the northern plains.
A lot of rivers start there.
We're going to see some possibility of flooding.
The spring flood forecast calls for moderate flooding in areas like the red river.
We are likely to see the ice not rapidly.
What determines a bad flood?
How do you get to a 1993? we talked about the perfect storm, all of these factors coming together.
It is the same thing for the flood.
Rapid snow mall, increased rainfall, and a quick warm up in the temperatures.
When that happens at the same time, water has no place to go.
That is why we see flooding.
How far the dash down the mississippi river does flooding occur?
We had flooding as far south as louisiana.
It can go pretty far south.
It depends on the low lying areas and their proximity to where those ice jams occur.
They tend to cause a lot of problems when the water cannot flow freely.
You have california which suffered a drought this winter.
They did get some rain and some snow.
And he drought relief in sight?
We're coming into the time where the season is improving in terms of the drought.
When you look at how severe and serious this drop was, -- this drought was, it was a record year for not enough reciprocation.
We're likely to not see any relief in sight.
This past year and recent years prior have been record-breaking.
It is a very serious problem.
Every time she shows up, i learned something.
What is options trading showing us today?
We're about to go "on the markets." ? that does it for "market makers." tom and i sat in for erik and stephanie.
Stephanie will return on sunday -- on monday.
Look at the tension.
But from a. i want to see her in action as a mom.
Send in another picture tomorrow.
Tomorrow, a ground-level view of the fight over immigration.
We will speak to the mayor of el paso, texas.
It is 56 minutes past the hour.
Bloomberg's television is "on the markets." we are diving into derivatives.
A two-day losing streak today.
Consumer confidence overshadowed a drop in home sales.
The vixen is closing back below 14. max, bear with me.
I will run you through the data.
Strong consumer confidence.
Soggy housing data.
The richmond fed manufacturing index showing a contraction.
What are the catalysts for the options market?
The inconsistency of data we have seen over the past months.
We are seeing less and less major catalysts reflected in the range bound vix.
The vix has hovered between 14 and 16 and has not broken out either way.
The declining vixen volatility is reflected in the declining market volatility.
One stock we are seeing a pop in is nokia.
They said they were going to delay their sale to microsoft a cousin of some hurdles over asian regulators.
You said the question is whether microsoft will use this as an opportunity to get out of the deal.
Is that what you're seeing in the options market?
That is the underlying theme.
Microsoft entered into a deal with nokia.
Now that there are some delays in hurdles, whether or not microsoft uses these hurdles as an excuse to potentially pull out of the deal.
Based on the way that traders are playing the options, you think some are betting microsoft will back out of the deal.
I think people are nervous about it.
They are trying to guard against that possibility.
The biotech index has been a big topic the past few days.
Is biotech in a bubble?
The index is trading at 400 times reported earnings.
That is 25 times the trailing of the s&p 500. if you talk to people into met with the space.
It does not train on traditional fundamentals.
They trade on the markets of potential for their drugs, the potential of new drugs in the pipeline.
It is more about growth and the pipeline than about fundamental valuation metrics.
What is your trade?
It has been a strong uptrend.
We have seen other corrections of this magnitude over the last year.
I would go a little further on the curve and look to june options.
The etf is the only game in town as far as i attack or index products go.
I would look towards the june call spread.
A gives a nice range of upside at a fairly low price.
Given the trajectory of the
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