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tv   Tech Check  CNBC  August 31, 2021 11:00am-12:01pm EDT

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>> so not true then. 22 minutes he said >> 20 minutes he said, yeah. >> so maybe a slap at how short that trip to space was too >> yeah. all right. well, space tourism, we started the hour with it, ended the hour with it. now it is the end of "squawk on the street" and "techcheck" will start. good tuesday morning, and welcome to "techcheck. i'm deirdre bosa with jon fortt and julia boorstin today getting crushed as growth continues to slow. why zoom's run may be over and traditional investors being put on hold. what to make of the latest meme
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names? later on, we're live outside the courthouse as jury selection begins in the elizabeth holmes trial. >> we're going to start with the work from home darling that hit a speed bump zoom down more than 15%. the stock having its second worst day ever, following results that beat estimates but saw overall growth slow. revenue up 54% year over year. great number, but a tough comp against last quarter's 191%. you heard that right it is concerning for investors this morning guidance for next quarter, lower growth the stock already cut in half in terms of where it was trading in october of last year and, yes, a work from home darling, but now it finds itself competing with titans like microsoft and salesforce, a number of well funded startups on the other julia, i think this is a story that we're seeing play out again and again. zoom, of course, competing with teams and others, they talked about zoom phones, ring central
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also public is in there as well. we could talk about peloton cutting bike prices as demand wains post pandemic and robinhood, coin base up against paypal and square. it is not going to be easy from here >> yeah, i think what you're describing, jon, is the rise of the disrupter and the disrupter facing challenges from the incumbent, those companies like microsoft with teams and google with google meetings so i think what we're going to see now is this battle between the slowing growth of the disrupters, the rising growth in the lack of churn among the incumbents what was most interesting about the zoom numbers is the fact they saw the most churn in the smallest businesses, ten people or less, individuals who are saying i'm out and about more, i don't want to pay for this service, when i have so many other options. >> the pull forward from the pandemic has had such an effect, raised expectations so much for
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a lot of these darlings. but you don't count zoom out remember early days in the pandemic there were so many different competitors, for video conferencing, and what do we ask of the disrupters, how they can become platforms and there was a lot of talk on the earnings call about zoom phone, which is putting up some pretty good numbers. it cleaned up its security, its encryption question that investors are trying to figure out now, a, is valuation, where it should be, and, b, can it transition into this unified communications platform as it has promised and shown some promise that it can, especially with the acquisition of 5-9. >> and zoom events can't forget about that. they have their eyes set on all kinds of communications possibilities. our next guest lowered his price target for the stock, forecasting zoom's revenue will continue to slow the growth will, for the next few quarters deutsche bank's matthew nicknam
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joins us matthew, why isn't this a good entry point? we have zoom, you know, it is year to date gains are just about gone and it does have a plan to build itself a platform, valuation wise, what are you comparing it against >> thank you for having me for starters you have a company that had been growing triple digits year on year over the course of the pandemic we have seen growth now decelerate to 54%. we're looking at that growth now going to 32% next quarter. 16% the following quarter. getting into the low teens before you sea a e a reacceleran for a stock, i'm not sure that a midteens growth profile the next couple of quarters warrants that type of superior valuation we have seen in the past. >> so but if it does become an enterprise mainstay in the communications space, if it can hold its own against the slacks,
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the teams, et cetera, and also have more of a consumer awareness and brand name, isn't it worth more than some might give it credit for >> yeah, it is a great question. we're not ready to jump in right now and buy the dip. the issue for zoom is it is going to take time to harden and bolster this enterprise platform while that's going on, you got 36% of revenue that is still coming from smaller businesses these are customers with less than 10 employees. and as you noted, that's its cohort that is much more prone to churn as you've got the economy globally starting to reopen there is going to be puts with the delta variant and such but at the end of the day, you have north of a third of the business under pressure and got this ongoing investment to build out this enterprise platform, we're not sure that happens overnight. we think it will take a couple of quarters for that to take hold >> yeah, it is interesting, matt, talking about that churn i'm curious as you look at the
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churn in the small and medium small businesses and look at the competition, what do you think the biggest threat is to zoom both in terms of those small players and as well the enterprise clients >> yeah, it is a great question. when i think about small business and that cohort of customers, the biggest threat is economic reopening you had a scenario for the better part of the last year where you had businesses on lockdown, you had people needing to use zoom. so they're the first call when a business wants it keep operations ongoing as you think about the economy reopening, there is going to be this head wind it is not just limited to small business you have enterprises more deliberately looking at solutions for hybrid work and what is the future of work look like as you think about up market, you got some larger peers which are making a play for that enterprise customer as well. think about cisco, webex, microsoft, teams, google from that perspective, it is choppy, but we very much agree
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with zoom's strategy of building out this enterprise platform, adding on phone events, going after the context centers and service markets with the acquisition of 5-9 we think it will take time to play out while you have this churn head wind, you'll be looking at a much different forward growt profile relative to what we saw during the pandemic. >> what about the opportunity outside of enterprise? something that eric said on the call last night caught my attention, he says he we don't want to monetize 6 through 12 schools. it is a great sentiment. do you believe him and you to think they could be potentially missing an opportunity here? we know other big tech is looking at education >> it is a great opportunity, but i think commentary on the call implies that at the very least for the next school year this is going to be included for free right now zoom is operating at 76% gross margin, up fairly nicely relative to where they
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were early on. they have been moving a lot of traffic out of the public cloud into their own data centers. in theory, this could be another -- were they to charge for the k through 12 vertical, could get them closer to 80% our concern is with zoom's ability to exceed profitability and margin expectation it is more so around slowing growth they have enough levers and able to scale so nicely from a submillion dollar business to about a $5 billion business next year so there are levers that education probably is one is in the next year. >> they're not targeting matt, thank you. >> thank you and, guys, new meme stock is in the making that we want to bring your attention to. ever heard of, a technical support company whose shares are skyrocketing this week, up 40% yesterday and they are lower by 8% today, however. but if you had invested in january, you would be up 1600%
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the surge comes as names like gamestop and amc have seen a pickup in activity lately. gamestop up 30% since the start of this month. robinhood, however, unable to capture the same momentum. i s.e.c. chair gary gentzler told barons banning payment for revenue flow, it is on the table. shares of hood down 10% in a week below $45, though up about 1.25% today. gentzler told barons that, yes, the spread, marketmakers and robinhood, can make money off the spread, but it is about more than that. it is about the data, right? the data that the marketmakers are collecting here could represent an inherent conflict of interest. >> yeah. just want to note, on, market cap on that now less than a billion dollars. we normally don't talk about
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companies that small and that's after it had that big run-up so be careful, people. just for fun a lot of times, not for keeps, whether it is a meme stock or the new generation penny stock, whatever. but going back to that robinhood point, julia, i think this goes back to sort of the question that is underlying zoom, as these conditions change that brought some of the companies up so high, whether it is the excitement behind the stock, the questions about the sustainability of the business model, how diversified are they in their various approaches, right? microsoft has got office and it has got windows and has xbox and all these various -- and azure, the cloud. it gets a valuation boost off of that too besides the teams part that is competing with zoom, if you're one of these other companies, how quickly can you build up that portfolio >> yeah, if you look at robinhood, the fact that the vast majority of their revenue comes from payment for order flow, how problematic that is when you get that big warning
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from gentzler and then they're not that diversified really is, you know, sort of dramatically in contrast with what we're seeing from the likes of paypal, deirdre, as paypal, you know, works to get into stock trading and all these things that robinhood has been doing. >> look at what venmo has done for paypal when you talk about diversification. that's the promise of robinhood. 80% of revenue comes from payment from order flow. but that young active user base is so promising for longer term investors if they can translate them into, you know, purchasers, buyers, users of other financial products >> yeah. that's right this paypal news comes amidst a firm and amazon's new par partnership that sent the buy now, pay later company stock soaring. it is ticking down today, down about 7%, giving up some of the gains.
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our in half are likely to use the new offering dan joins us now half of amazon users, that would represent a dramatic shift in customer behavior. amazon is so dominant. i'm curious how you got to that number and also what the long-term effects of that could be on the other players that are also offering similar buy now, pay later services >> i know. thank you so much. it is great being on the show. really appreciate it we did -- over the weekend we did the survey over 200 amazon customers and we were shocked as well almost 50% said they're likely or very likely to try out buy now, pay later on affirm 22% said they're likely to try it out it is a huge number. it shows you this is really bucking the trend and, you now
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it follows the acquisition of after pay by square and you see this is a real trend and amazon wants to be that trend and it is a win-win for amazon they're getting more conversion. it is a win-win for affirm this is a game changer this is at least 20% to 30% potential upside to gross merchant volume gmv and i think this -- we raised our price target to $110, but this is a game changing deal because it is entering a new space that has never been done on amazon before. >> and do you think this will enable affirm to leapfrog ahead of all of the other players, whether it is mastercard or klarna that are offering similar services or this will drive adoption of this format as a way that people buy things >> yeah, it is driving adoption. buy now, pay later if you look at australia, you're seeing an inflexion point in
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credit credit is starting to trend downward buy now, pay later is taking over this is driving adoption and consumer habits. we in the survey, in the empirical evidence we have done, 46% of people reported about 46% of volumes are on using debit cards. a lot of the debit cards are where buy now, pay later comes from so i think this opens up the opportunity to use credit for people that actually didn't have the chance to use credit before. and that's why it is so important. it is getting people the adoption or the ability to buy on credit, that they would normally not do. >> dan, it is deirdre. amazon has kind of already been doing this itself. through installment plans, through a credit card. does this surprise you that amazon isn't now sort of branding under buy now, pay later, itself, especially since it wouldn't be holding the credit, right? it would be through an
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intermediary bank, like affirm. >> it is a great question. we have been asked that a lot by investors over the last few days what is happening is amazon wants to sell stock. they want to be the best e-commerce retailer in the world. which many people would say they are. they don't want to be taking massive amounts of balance sheet risk and extending those loans it makes a lot of sense to say, hey, who is the perfect partner that has all the data, all the analytics, all the experience and doing buy now and pay later, partner with them and it is a win-win. we want to sell things and saying we, amazon. we want to sell things and be the best-seller of all things. >> amazon never just wants to just sell things they want to do everything. >> you're right. >> dan, it seems like -- >> i'm being a little careful. >> it seems like this is a big shift in risk from the consumer to affirm, right people have access to credit who didn't have it before. which is great for the consumer, lower costs for them
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my question is even if affirm's software, if its algorithms are better, doesn't it need a massive amount of access to capital? bank-like, in order to protect itself to the downside in case of a sudden recession? how do you factor that into your expectations on affirm's value and its trajectory >> i mean, look, in a downturn everyone suffers i agree with you i think this is -- that is interesting about affirm and the other buy now, pay later, their ability, they sit in the valley, one of the founders of paypal is the founder of affirm, so you're getting a lot of brain power, a lot of algorithm power, a lot of artificial intelligence power, to be able to underwrite the consumers in a much more efficient way than, say, a normal bank would do that's issuing a credit card and i think that's where the edge is. you're seeing through the mini
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downturn we had in covid, look at results which -- this wasn't a real downturn, but nevertheless, you're really not seeing the default rates, right, the transaction losses spike dramatically even during covid, right? so i feel like their ability to understand their customers, this is something we have been talking about for square, right? square themselves, that's what they do really well with the cash apps, that's the key, that's where the holy grail is to be found, right that's what they do really well. that's why amazon meets them and why it is going to be a super successful partnership >> well, dan, such a fascinating time for this space and so many different fintech players for us to be tracking going forward thank you for joining us >> always a pleasure nice background. coming up, south korea passed the world's first bill curbing apple and google app store payment policies what does it mean?
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could the u.s. be next we'll discuss after the break. "techcheck" is just getting started. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
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san jose courthouse as jury selection begins in the criminal case defense the theranos founder. we'll be live at the scene with scott cohen later on in the show don't miss that. m looking forward to hear how that's going certainly. >> we'll be watching that case closely. we'll take a gut check on apple. the stock rallying to a new all time high yesterday, notching its best day since march 9th apple suppliers have been on a tear including nxp and broadcom. we hear earnings from broadcom thursday afternoon apple is uppe eup nearly 15% ths year >> perhaps weighing on apple today maybe is south korea voting to officially limit apple and google's control over payments within their app stores eunice yoon has that story for us >> south korea's software
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developers are cheering after the country's parliament passed what is known locally as the anti-google bill the bill bans google, apple and other app store operators from requiring mobile phone users pay for apps, only through the operator's own in app purchasin systems. it also mandates that exclusivity agreements cannot be forced on developers operators can be fined up to 3% of their south korea revenues if they fail to comply. developers have complained about apple and google's 30% commissions and further enraged when google announced last year it would make in app purchases mandatory for nongaming apps local groups say total sales in south korea for the google play store hit $4.2 billion in 2020 and $1.3billion for apple's ap store.
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to be signed into law, the bill heads to the desk of president moon jae-in's whose party has been supportive of the bill. back to you. >> thank you very much google released a statement on the bill saying, quote, google play provides far more payment -- far more than payment processing and our service fee helps keep android free, giving developers the tools and global platform to access billions of consumers around the world for context, the google play store accounts for 75% of global mobile app downloads in the second quarter, but apple makes more money collecting 65% of app store spending acording to app ante joining us cnbc contributor nila patel we're talking about antitrust, penalties, rulings, however it never seems to be in focus for investors at least as we continue to see big tech apple included, hit all time highs. >> yeah.
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i think the quote i keep thinking about here is the famous jeff bezos line your margin is my opportunity this margin for apple and google is huge, driving both these companies for years and years now. and that margin is going to start getting redistributed back to app companies and app vendors who are able to take some of the 30% they have been paying to apple, put it back into their own products, back to their investors. that's a huge deal this south korean regulation is just the first we see worldwide and a lot of countries are going to see how it plays out before taking similar action. >> and what about here in the u.s. how closely are they watching? i know there is something similar being considered over here, so you think this is sort of just the first step, we'll see a domino effect from here on out? >> i think this 30% rate for both the companies is dead in the water around the world i think here in the u.s. it depends on how a lot of things go there is a lot of dominos. i don't know what order they're going to be in there is the epic trial against apple, which is going to come it a verdict soon
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that will get apepealed in eithr direction. we have learned a lot about how google manages the play store. at one point considering buying epic to shut down this x competition. as more evidence comes to light, the regulators in the united states are taking a hard lack and there are those bills in congress, they seem like they're moving along slowly, there is quite a lot happening otherwise to distract the government now those bills are on track so i think i don't know in what order a verdict, the google lawsuit congress, congressional action will take place, but it is happening and i think fundamentally this is good for these companies, good for apple and google the way for them to win is to start to compete again, providing services to developers. >> it is so interesting as we wait for these dominos to fall as you put it, and one of those bills in congress, one of those bipartisan bills has a lot of pieces that this south korean law has.
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i think it is worth noting that that is in play here when you say this is going to help apple and google, i wonder what you mean by that in terms of competition and how you see them reacting, maybe proactively, as they await more of those dominos to fall we saw apple through the settlement and the class action suit last week do you expect apple and google to make more concessions ahead of more legislative action >> i don't know if that settlement was a concession at all. i think it is emblematic of the steps apple thinks it can take versus the steps it should take. apple put out a press release, they're settlinging the lawsuit. i think you're seeing with developers in particular just a rising swell of antipathy toward apple and google if they don't have great developers who want to build great experiences for the apps, the phones turn into shopping
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malls. a big question is whether we want to have our own computers or someone else's shopping mall. for appleto maintain its brand and image to maintain that pride of place in the america tech ecosystem, i think they have to make sure the offer is on their side the way to do that is to be pushed into competing. >> it is a decade of the app stores, great for the first decade, everybody was excited. now, like, wait a minute, a little bit much control and take from the operators here. flip side of this is that in a lot of ways these app stores are working better than the pc equivalent and software distribution, which was all kinds of buggy and unsafe. so, do these companies have enough different options, apple and google specifically, levers to pull in order to maintain enough influence over their ecosystems to build profitably from here? >> yeah. i think they do. one argument that never resonates with me from big tech companies is they tell you they're not smart enough to figure something out
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i think they're smart enough to figure it out. they figured it out on the mac, to windows they figured it out on android, which does support additional app stores in the side loading of third party binaries. a lot of ways to maintain the security, while providing things as simple as third party payment options. and i think here the thing that has happened is apple and google haven't budged at all. and because they haven't moved at all, you're now facing the prospect of pretty heavy handed regulation i think that's a dynamic we should see play out more carefully in this country before five antitrust bills take root and all kinds of unintended consequences happen. these companies have the opportunity to change. they're in the taki not taking t >> thanks for your insights. >> thank you it has been an ugly few months for chinese stocks with new regulations across a wide variety of sectors while the hang seng is ending august flat, names like alibaba
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that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? welcome back to "techcheck." i'm jon fortt with deirdre bosa and julia boorstin elizabeth holmes one time paper billionaire, silicon darling, is headed to court. scott cohn is live on the scene as jury selection begins first, a news update with rahel solomon. >> good morning. here's what's happening at this hour consumer confidence pulling back sharply in august. the index sank to a six month low due to the delta variant and rising prices. home prices continue to soar key index posting a record 18.6 increase in june the biggest price jumps were in phoenix, san diego, and seattle. all three were up 25% or more. colonial pipeline has
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restarted. the main gasoline and -- and the internal revenue service is giving an extension to victims of hurricane ida including all residents of louisiana they'll have until january 3 toward file returns or make tax payments that are due after august 26th. you're now up to date. deirdre, back to you >> thank you after almost four years of delays the most anticipated white collar trial in years is -- elizabeth holmes arrived in court moments ago, especially correspondent scott cohn has that story for us. scott, we're learning more about her possible defense >> we are, deirdre as you can see, it is quite the ticket here in san jose. this is just jury selection for this trial, which is expected to last about three months. this new information comes in
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court documents, newly unsealed, where holmes attempts to place the blame on sunny balwani he was the theranos chief operating officer and her ex-boyfriend she claims that he abused her for a decade, monitoring her calls, texts, emails, physical violence, restricting her sleep and insisting that any success she achieved was because of him. adding yet another dimension to the biggest white collar fraud trial in years just like her idol, apple's steve jobs, elizabeth holmes thought she could change the world. >> the goal is to empower the individual. >> reporter: dropping out of stanford in 2003 with an idea, the technology to perform a range of medical tests on a single drop of blood from a finger prick cheap, painless, maybe saving lives. >> it came from losing my family members. and people that i loved. >> reporter: a story made for silicon valley, where the story
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is everything. theranos would raise some $700 million from investors like rupert murdoch and betsy devos, attract board members like henry kissinger and george schultz, and strike a deal with walgreens for in store blood tests, making elizabeth holmes very rich her company at its peak worth $9 billion. just one problem, says reporter john keraru who broke the story. >> she commercialized a product, a medical product, she knew did not work her machine only did a handful of tests and did not do them well at all. >> reporter: a charge holmes denied >> this is what happens when you work to change things. >> reporter: federal regulators including the fda pounced, in 2018, civil charges from the s.e.c. of a massive fraud, she settled without admitting wrongdoing months later, criminal fraud charges against holmes and balwani, he goes on trial next
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year, both have pleaded not guilty the feds have to prove that holmes intended to commit fraud. >> elizabeth holmes may try to portray herself as someone who got caught up in the culture of the dotcom industry and silicon valley where you fake it until you make it. >> that issue of intent is exactly the point of these new allegations against balwani. the idea is that he exercised so much control over her that she could not possibly have formed the requisite intent to commit a crime. in the same cache of newly unfiled documents, balwani denies the allegations, calls them deeply offensive, and devastating personally to him, not to mention prejudicial to his case this all -- this also increases the possibility that elizabeth holmes herself takes the stand the defense team has hinted at that it is an incredibly risky move if she does so but elizabeth holmes knows a thing or two about risk and about persuading people here in silicon valley
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guys >> scott, i wonder your take on this, i don't know i have ever seen an image shift like the one we are seeing unfold before our eyes, even with elizabeth holmes showing up to court this morning. she looks vulnerable right? but the image she put -- nobody heard about balwani before when talking about they're moos theranos it was all about holmes. she projected ultimate confidence and she was the decider at theranos. have you seen a shift like this before in this kind of context >> well, i mean, you can see certainly her demeanor as she shows up for court, her proceedings prior to this and today. and it could very well be that, you know, she's in a pretty rough situation that she's not accustomed to based on all the accolades she had gotten in the past when theranos was the hottest thing in silicon valley. we'll see if that's an act, we'll see if the jury that they're going to be selecting over the next two or three days
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buys it or believes it that's what makes this phase of the case so, so critical >> so fascinating, scott we'll lean on you for all of these fascinating developments thank you very much. meantime, virgin galactic shares have been, well, earth bound for august is a turn around ahead if you ask jeffries, they say yes. the firm forecasting big demand in the future. shares are surging today read all about it at "techcheck" will be right back ♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪
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♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.
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record day after record day for the nasdaq and the broader tech sector. let's bring in mike santoli at nyc, looking at a few divergences within the indexes >> yeah, julia, divergences, reconvergences, maybe new divergences. look at the russell 1,000 growth versus value on year to date basis. we talked about the interplay here and it was all about value going into may, june, before we had a little bit of a slowdown here and fed was getting active.
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and growth had this resurgence what is interesting to me, this is roughly both styles, so to speak, are up about as much as the s&p 500 as a whole is. so for periods of time it seems like it is all one or all the other. right now it is showing not necessarily zero sum gain. there is mack rero fears semiconductors, software, now semiconductors have been more the consistent outperformer if you look at it on year it date basis. but flattened out over the last several months and software has made a little bit of a comeback here this goes right long the same lines, not so much value versus growth, but cyclical expectations, how strong is the cycle going to be, how strong is the world economy that seems to benefit semis and risk appetites are rising when semis are going up and they have taken a little spurt to a new high recently,
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versus software, much steadier and reliable to fall back on, people are concerned about the way growth is going. it is also possible for all of it to come back at once and have a broad scale pullback we have not had one of those, though, since last september into october early part of november maybe overdue. the market is not showing us a tendency at the moment to have one of those broader deep pullbacks, guys? >> maybe we're overdue we'll see when that happens. and coming up, it just raised $11.5 billion in new funding we'll talk to ceo of one of the biggest private cloud companies. and speaking of the cloud, keep an eye on ahsana, shares have doubled since june catch thlast cere e teovaghere on "techcheck. stay with us
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if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent, but it doesn't equally distribute opportunity, and paths are not always the same. - i'm so proud of you dad. - [man] i will tell you this, southern new hampshire university can change the whole trajectory of your life. (uplifting music) stocks getting a bounce today, but it has been a brutal year as the regulatory crackdown continues. that hasn't yet trickled through to private markets though. new data from pitch book suggests that venture capital deal value and activity, number of activities is on pace to surpass last year, overseas investors participating in nearly a quarter of all of those deals on the first half. even exits remain strong with more startups looking within the
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region for listings. shanghai, hong kong exchanges. meanwhile, the crackdown has had an impact on the makeup of these investments. the data shows that hardware and semis are getting more vc dollars and that is part of president xi jinping's push to rebalance the technology sector. whether it holds up in the second half, that remains to be seen we had a guest, i think this week, starting a fund, and if you're willing to invest in shares, those are companies and shares listed in the mainland, there could be opportunity, but then you have to keep your money inside of china, which a lot of investors aren't exactly comfortable doing. >> yeah. yeah for good reason, of course and one name missing out on august rally, well, roku shares down almost 17% since the month after reporting mixed results, slowdown in user growth, lower engagement that said, if why you've been in roku for the long-term, shares e ildole in the last 12
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with your internet. it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. a new report just out of the nicka citing multiple sources saying producers of the upcoming apple watch are behind schedule. they say the manufacturers that began production last week ran into major challenges in achieving acceptable production performance. this is for the upcoming, again the upcoming apple watch 7
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apple shares down about 0.75%. >> apple warned of supply issues moving forward in the last quarter. we'll see how they deal with that. meanwhile today's funding secured data bricks announcing $1.6 billion round valuing at $38 billion joining us now the ceo and co-founder ali ootsyp you have a data lake with data warehousing. it's a shot space. we saw the snow flake report not long ago with still strong growth one of your investors said you're going to do about a billion dollars in i think revenue in the coming year is that how is looks >> well, we haven't given any forecast of revenue next year. but we're having huge tailwinds. something happened touring the pandemic where i think people's livesy turned upside down. now, everybody, thinks, of
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course, ai is the thing that's going to change our -- or transform our company. people are doubling down on artificial intelligence and data transformation >> ali can you give us insight why you are koosing to raise money at this valuation instead of going public? you're certainly at the scale of many companies we've with seen doing ipo. >> we're going public six months at a time. in each of the fundraisers you reshape the cap table and bringing in the mutual funds, mutual investors you want to build relationships with over the next decade. it's what you used to do in the ipo process, talk to the bankers bring in investors and allocate big blocks we get to do that. in january we raised a billion dollars, lskted to the long-term investors we want to have and now 1.6 billion again. it's actually sort of an enviable position you can do that in private markets. i think it's great. >> a year ago we saw the
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tremendous surge in interest in companies with good ip around data, cloud technology thinking about the valuation for the ipos that snow flake got that c 3 ai got. but then we saw a lot of volatility in that afterward is that influencing at all the way you think about how you come public when you eventually do in. >> no, really we're taking a long-term view on this we think we are in the very early innings people do with data and ai pmt over the next decade people can't imagine how much it influences enterprise as a whole. ipo has ai in in it initial the stepstone building a great iconic company staenting for many decades to come. >> you say raising money in private markets is going public
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six months at a ime. you don't get the public awareness your competitor snow flake did get throughout the course as a public company does that put you at disadvantage do you have plans for listing? >> i mean, we are definitely ipo'ing. we haven't shared time lines and not opt miss myselfing for a particular date. i have to say we are getting amazing press coverage of the fundraisers we have so it's like going public six months at a time that's one. the second thing is there is massive tailwinds. our business is turl accelerating post-pandemic something is happening. in ai cloud computing open sourcetechnologies seem to be more top of mind for leaders of different enterprises. i think these are secular trends remaining for a rung time to come. >> press coverage of the fundraiser is well paid. aly thank you for joining us we should mention data bricks is a two-time cnbc disrupter company. our weekly news letter looks at disrupter companies like data bricks sign up by visiting
11:55 am news letter. here is our breakdown of zoom's latest quarter. follow and subscribe to here about it on the podcast and the rest of the show listen any time anywhere wherever you download podcasts tech check iba iju a ments ckn st i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪
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one more thing another d. to cipo shoe company all birds filing to go public at the nasdaq under the ticker bird the filing comes a week after eye wear maker washy parker announced intention to go public via direct listing we have to point out direct to consumer brands hasn't been all that great since going public, honest company is down by more than 50%, casper sleep by 62% and blue apron down 97%. jon, you pointed out last week the most successful might be peloton but you have to wonder there is the whole new category of company that really benefitted from the pandemic, shifting consumers away from brick and mortar retail towards increasingly the d to c space,
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jon >> i think so. but i think also there is more to this story. it's about not having to rely on others for distribution, because war by has their own brick and mortar stars o stores but they have the relationship with the customer that allows they have to have better margin and reminds me of the airbnb a model that doesn't rely op 57 stores and search engines to get in front of the next dollar. >> or in all birds e-commerce platforms, all birds has been quite strict about not using amazon to distribute their products but of course they've also been plagued by counterfeits. it will be interesting hosea to you it roles out the julia mentioned the d to c companies went public in the last waevt not doing well smile direct club added to that name ipo'd at nearly a billion dollars now trading around $$2 billion. >> but, hey, if they can make it, they can make it well.
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nike used to do business more with amazon. stopped doing that and they're still doing quite well ho how about that for shoes look at zoom having a rough day, affirm pulling out a bit after a strong day yesterday and with that "halftime" starts now. that's right and welcome to the "halftime report," everybody it's the last day of the month and oh what a month it's been for stocks one of the best of the year. the best for some indexes. retail traders where they're back money, it's flowing in and nothing can stop the market from going higher. right? wrong. there is always risks. and we're going to hit them along with more opportunities still are. and a great lineup today stephanie link, liz young, josh brown and pete najarian, co-founder of market all right. that's ahead bu


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