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enormous through the course of the year. >> and some of those companies, redwire. another space name on the opening bell going public through those deals as well. that does it for us on "squawk on the street. "techcheck" starts now. good wednesday morning welcome to "techcheck. i'm joe kernen with jon fortt and julia boorstin coming up on the show today, storytime. coinbase calls the s.e.c. sketchy receiving a wells notice over their lend program. plus paypal pays now more on their $2.7 billion in the buy now pay later space. and then california streamin'. apple announcing new products unveiled next week and we have what to expect julia?
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>> and shares of coinbase moving lower this morning after the company received a wells notice from the s.e.c. over a product called coinbase lend lending crypto assets. now those plans have been put on hold until at least october. coinbase says they are caught off guard by the s.e.c.'s actions. ceo brian armstrong tweeting the s.e.c. refused to meet with him in may during a trip to washington, d.c. saying they weren't meeting with any crypto companies at all direct listing price up less than 5%. going public, since going public in april what do you make of armstrong taking a relatively aggressive stance and will lend be able to launch at all? >> julia, in a way makes sense to take an aggressive stance, because he wants to move his product forward. had this thing in the pipeline tried to meet with the s.e.c wouldn't meet with him meanwhile, competitors who
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aren't public are already doing the same thing look, i can see why the s.e.c. might be wary. the sort of product my mother would tell you not to go into. these -- i mean, yields of 4% when banks are offering so much less and guarantee the principle but just the principle looks like a savings account, carl, but it's really, really not. >> yep definitely pushing the envelope, and, of course, if you missed the 9:00 a.m. this morning, guys cramer said his sources within the s.e.c. did not look kindly on armstrong's thread and in cramer's own view, shameful behavior and something armstrong should take back i point out, a fair amount of, argue, supportfor armstrong's stance and at least the company deserves a more pro active view of where regulation is headed rather than what they received so far on lend >> yes look, he did get support on twitter, but i think the real question is, what is gensler
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going to do now about regulating crypto armstrong was clear. they want to follow the rules. if rules are vague it is contingent upon the s.e.c. to clarify the rules. i think this really is going to be a moment here, jon, where we are going to have to see much more clarification and rules that are clear across the board, because if some of the services are already operating, you have a state like new jersey already crack down on blockbying offering can not be a state-by-state situation dealing with crypto and we need more guidance. >> either that or a crisis for everybody to say, oh, well maybe we shouldn't do that, or maybe we should. paypal, speaking of debt sending a $2.7 billion direct deposit to haiti acquiring the japanese buy now pay later firm in a largely cash deal the deal expected to close fourth quarter of 2021 haven't technically bought it yet. this after a similar acquisition
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claiming to buy australian firm afterpay for $29 billion and a firm, 46%, remember that, gel session last week partnering with amazon. last month's financial times reported haiti considering going public today shows consolidation in the space winning out. paypal plans to buy and where shop online tripled over the last decade. transactions in that country still in cash. paypal a big pandemic winner stock up almost 60% over the last year while active accounts worldwide stand more than $400 million. overarching theme here, carls, seems to be these tech-ruled companies think they're a vision of the future. fintech, able to outweigh the leverage involved here, and potential economic shock, and -- you know, consumer always got to be careful here, and investors so far have been winning out
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>> yeah. definitely true. then julia, at least on the m & a so far, directionally, these appear to be paying off. interesting to me. i'm sure just anecdotally on this particular program the frequency with which we are talking about buy now, pay later, definitely growing. just in the last couple months. >> i think, carl, we've also seen usage of buy now, pay later also growing the thing to watch here is massive consolidation ins space. we are going to see these mega fintech companies and the fact this is a japanese company points to the fact that these are global opportunities these are going to be global companies and there are so many other countries like japan where so much of the, the transactions have not been converted yet to digital transactions a huge international opportunity for square and paypal to pursue. >> yeah. joining us to talk about the ripples in crypto markets,
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general partner, former vp at facebook sam who invested in companies like robinhood and solana and first investor in paypal owned than most sam, great to have you i'd love your reflections what the fascination is about buy now, pay later is it macro-based? looking at where household balance sheets are headed and how demand holds up as they shrink or the savings rate drops? or simply white space that hasn't been filled yet >> pretty simple which is basically, a private innovation turning out you can get a button on a checkout thing and say, pay later people want that not a shocking revelation. no clearly big business is built around it. interesting what's happening paypal is playing a little catch-up here. i argue why not spend 1% of your market cap to get in the game and get ahead? a program they vo have built themselves years ago right? seen innovation, know consumers
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want it. 0% interest rate environment, why not? seems like a clear thing you can offer efficiently. now a race see if people like stripe and others respond now. >> do you think the amazon firm relationship puts them, puts affirm in the poll position, at least for now? >> the question in my mind, a real return. offering in a few years and good businesses but no fundamental reason to be incredible businesses my sense, look, affirm's a great company. a lot of great companies doing this not like a venmo pup mentioned paypal acquired ahead of the curve. the first investors in that, true network's effectiveness not clear buy now, pay late sir. m makes a lot of sense buy now, pay later. >> why not the credit card industry sure for disruption everybody uses them. so few who need them actually
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love them. the people who do well in them not for the debt but the benefits and points, and other ways of getting that right? isn't this a classic case your margin is our opportunity? >> sure. i think the question is like, is there going to be a winner in the space or everyone do their version of it? do i care, consumer using six buy now, pay later versus one? literally you'll see it everywhere in the future, and every major service deliverer is forced to offer their version of it >> sam i want to get your perspective on the s.e.c. threatening to sue coinbase. you have invested through slow ventures in so many different companies connected to crypto. what do you make of that and what do you think the long-term implications could be for the whole crypto space >> look, i applaud brian coming out as a real voice in the industry and saying what we're
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thinking s.e.c. has to stop the back roo conversations with no guidance crypto is future of fintech and the future of a lot of things, that will be very important to our world. if you think about the history, the u.s. for a century was in incredible position partially because people trusted our laws and frameworks and pro-innovation now a place the s.e.c. is not being consistent not being clear. actually scaring away innovation from u.s. markets. the reality is, i plo applaud hm end of the day, either the s.e.c. will get their story straight, be clear with everyone and put policies putting america in the lead or frankly crypto is going to happen everywhere else in the world, not the u.s. and we'll become antiquated pretty quickly. >> do you think the lag with which regulation is coming and with clarity, is a malicious
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effort, or is it simply regulators' inability to stay on top of a space evolving so fast? >> no malicious at all, to be clear. think of the speeds tech is moving especially in the crypto world, critical, the most important innovation going on right now for sure our biggest bet as slow ventures and dern incredibly well on them the s.e.c., a lot of dense things to understand, and a really big challenge, because of the nature how we think of markets and value exchanges, changes fundamentally so quickly. s.e.c. wasn't set up to deal with these thing not malicious at all but if america will lead in the crypto spaces we have every ability to do the tech talent, a lot of the most interesting projects, they need to come out with clear guidance, consistent and pro-innovation and let's america do what we can do best. >> finally, sam, really quick -- >> we've seen the crypto -- sorry. >> i'm sorry, julia. you mentioned that it's a tough thing to say, what brian wrote,
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do you think it pokes the hornets nest that is the regulatory structure in this country? >> look, end of the day, i think we need clarity. right? i think everyone in the crypto community is desperate for it. incredible innovation in the space. we were seeing investors in a company crushing it, solana. upgrading ethereum and desen tramizing contracting can be happening, amazing, powerful whether or not you poke the bear, you don't want to poke bears. end of the day, we need calls made. >> sam, appreciate that. very direct, insightful intel from you thanks very much sam lessin. >> thank you. speaking of crypto crypto and kcrypto-exposed stocks. >> during the course say the last week or so from the high market cap to the lows, bitcoin
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lost roughly $125 billion worth of market value in terms of that particular ecosystem, and in the ethereum ecosys ssystem ssyethos off another 2% trying to find stabilization after a sharp sell-off yesterday. ether a hair off actually green after a massive sell today it's interesting many of the coins sold off much more than bitcoin did as well and dogecoin off one-half of 1 percent. below one quarter a token there. overall picture how we've seen the price development ethereum in particular. up 361-some percent. the 15% or so drop here, context
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of lar larger 60% drop from highs earlier in the summer to lows over the last couple of months to put things in perspective there. like julia pointed out, jon. some of the equities, most closely associated you mentioned some of these s.e.c. friction with coinbase with regard to lend product. coinbase isn't getting help, down 4%. robinhood a good amount of its currency and revenues from cryptocurrency trading up 4% micro strategies, half of 1% square down about 3.5% as well a quick check how the ripple effects are going. jon, better today in terms of losses than in the massive sell-off yesterday back to you. >> ripple effects that could have been another crypto pun got it. >> thank you. and arriving at court in san jose, california, with opening statements in her theranos-related fraud trial expected in less than an hour. more on that coming up big show of "techcheck" just getting started.
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a gut check on citrix. holding more than $1 billion stake in the company and improve valuations shares got a boost today about 4% stock down more than 17% since beginning of the year, jon. >> yep meanwhile, the bvp emerging cloud index, high-growth software names a basket full, last three weeks broken higher now above the february highs compare those stocks to software giants like microsoft and salesforce with byron deeter. partner and creator of that index. byron, satya inadella on the sho tomorrow, and those smaller companies, software companies, doing some amazing things. mongodb and atlas, an amazing quarter. what's your outlook for why those valuations are justified
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and their values will continue to go? >> well, first i give a hat tip to satya and what they've done in microsoft and transformation to cloud outstanding. the azure business line is one mpt major engines of their growth and they've had a fantastic year, but eastern more impressive thing is to step back and realize even with almost 50% growth year over year they're trailing average of the new economy software companies in the cloud index. those 58 companies including mongodb, you mentioned, up almost 60% year over year and companies like microsoft in the short, medium and long term and we think that trend will continue as this transition and replatforming occurs from the unpremised world to the cloud world. >> byron, so much trust and belief in microsoft versus the smaller names. that's natural, in the sense microsoft has a track record it's big you know, et cetera, but what should investors be paying the
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most attention to, benchmarks? data things like that with the smaller companies to determine which are doing the best and which ones are healthiest and have the most going? >> naturally, comfort in scale microsoft is an exceptional and large company and we certainly expect they will continue to perform well why we did include in our new economy basket ahead however, hypergrowth over time will be rewarded and you see this from emerging companies mind you, these are companies in the billions, multihundred billion dollar range companies like paypal, you mentioned in the prior statement as well as shop phis, adobe, twilios of the world for folks wanting growth and people that want out performance, when you look at that basket growing on average almost 40% year over year generating positive recash flow, you can absolutely see out
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performance there that can pull away from the industry leaders and large incumbents including the folks like microsoft and amazon. >> byron, this basket of cloud stock has so many different verticals and so many different types of companies included be it applications or infrastructure which is the category or variety that you think shows most promise right now? >> we do look at it in terms of vertical slices. if you think of it as application platform and infrastructure as well as vertical segments, such as fintech or security, we see that applications really led the first wave those were the first ipos, the biggest names, salesforce.coms and adoeb is of the world. what we saw last year largest software ipo in history came out of the infrastructure space. snowflake. people watching data bricks and hoshi for a lot of upcoming ipos in the upcoming quarters now we see fintech and crypto
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within that as well as security really break out single biggest mover in the private markets last year, fintech segment. up over 400% year over year. staggering, led by companies like stripe, plaid, checkout and others. >> byron, love to get you to characterize tailwinds out of enterprise i.d. budgets and the way they're being re-invented coming out of covid. if, for example, we were to get a handle or a stronger handle on the pandemic itself, how much of those tailwinds would survive in a so-called post-covid world >> we're not going back to on primm software wholeheartedly. people found a better way. modern tech plam for the accelerated. that trend will copt we'll see, though, a reinvestment in a lot of infrastructure and some of these hybrid services helping that migration. those were put on hold or paused last year in this scramble to enable collaborative workers and turn applications on for
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distributing workforces, driven by the necessity of work from home we do expect to see a catch-up in some of knows segments and faster growth rates may come from those items critical in the long term, but weren't urgent given the state of the pandemic. >> byron, thanks byron deeter from besmer. >>. >> thank you. still to come, what morgan stanley says might be the next catalyst for a stock in amazon. next, california's screaming. expectation for apple going into next week. stay with us. (vo) at t-mobile for business, unconventional thinking means we see things differently, so you can focus on what matters most. whether it's ensuring food arrives as fresh as when it departs. being first on the scene, when every second counts. or teaching biology without a lab. we are the leader in 5g. #1 in customer satisfaction. and a partner who includes 5g in every plan,
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welcome back to "techcheck." we are resetting here bottom of the hour i'm carl quintanilla with jon fortt and julia boorstin underperforming dow and s&p today, coming up, why wall street continues to get more on
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netflix and another analyst upping its target. first a news update with rahel solomon. >> what's happening at this hour u.s. job openings setting another recordin july with employers looking to fill 10.9 million open positions labor department also says actual hiring fell slightly, while layoffs and number of people quitting inched up. treasury secretary janet yellen saying the extraordinary measures used to keep paying government bills run out next month. somewhat earlier than previous estimates of this fall yellen urging congressional leaders to suspend or raise the borrowing limit as soon as possible. and shares popped more than 70%. the french drugmaker sanofi in a deal worth $1.9 million. and macy's day parade, crowds cheering on the balloons. details wheres to watch and how many allowed to watch and the guidelines in effect announced
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in november. broadcast and on nbc and owned by comcast nice to see something returning back to normal back to you. >> yes sure we will all be watching that parade in a couple months. meanwhile, amazon is reportedly in the process of rolling out its own amazon branded tv and morgan stanley out way note outlining three reasons why this launch could be a needle mover stock marginally higher today in a down market. the rest of faang mostly in the reds joining us, analyst behind that note, brian nowak. already has devices, already has, you know, fire tv stick why would this television set be such a needle mover? >> good morning. thanks, julia, for having me i think there's three sort of big points here that the first thing is that you brought up the fire sticks. we know about the echoes this is sort of, we would argue, one of the next steps in
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amazon's continued push into the internet of things, and essentially controlling the mainframe of your home through a television so you think about the potential to unlock their if this really is a great product you could theoretically be sitting on your couch, watching that macy's day parade, asking alexa to turn the volume up, turn the lights down, order an uber, control lights in different rooms in your house all sitting on your couch in front of your television gets more control in the home. first point here >> that's my -- >> go ahead. >> my question, how does this tie into amazon's big push into advertising? could this be the next generation of interactive advertising where i watch something on tv and buy it immediately on amazon? >> think so. that's another one of the key
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potential unlocks here, because there is a, a big shift towards connecting tv advertising and digital tv advertising, and amazon they have a great advertising business on they have a budding source of engagement of people watching prime video, you could serve ads. and the question now, if you have an amazon-powered television, to what extent do you have amazon extend advertising offering on to the television you could actually have new performance and transaction-driven ads think of it as amazon knows a lot about you, because you're logged in. they know the type of toilet paper they use, what you like to purchase in your home. they could enable advertisers to serve you targeted ads while you're watching that television and theoretically with a click or asking alexa to buy the item you're being shown it could put a direct link between advertising dollars and
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transactions through voice service. >> the point i don't get can't you do all that with software do it with an external box so great people have to have it tvs have a long replacement cycle. smart in retrospect apple didn't come out way tv instead a box and focused on software. so if amazon's -- plus samsung can always make panels cheaper have to innovate in chips and in other areas to, if they're going to be a premium product. that's a lot of commitment without a price structure that's particularly awesome why not just do it with software >> yeah. an interesting point that the number of boxes, because you know, we've had all of these boxes building up in our homes over the past three, four years between echoes and apple tvs and fire sticks and chromecast sticks et cetera we argue big picture, those individual devices are sort of stepping tones to where we get over the long term with fewer devices that can control everything so the reason why it's so important to be in the
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television, still a main part of a lot of people's homes on the wall, in the living room, enable -- the ability to power more devices and do more just by talking to your television, eliminating the boxes and friction and unloxes a lot more touch points for consumers. >> does amazon have to win the premium spot in the house? biggest tv the one with most stuff ke connected to it, or aim for a value tv maybe in the bedroom or guest room and work their way in from there >> we don't know the exact price points of the tvs yet, but you'll probably see a broad strategy you've seen alphabet through android television continue extend their price points and number and prices of televisions they enable. we see over the next three to five years, seeing more and more
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push into, by alphabet and amazon into more televisions, at more price points to ultimately just have more potential control over the home and advertising within the tvs and throughout the home. >> fascinating world you're painting the idea of custom-made ads. already talking about a lot of consumers to opt out of app stickiness i wonder, is this swimming uphill or can the sheer scale of amazon overpower that? >> i mean, there's -- you know, this sortof goes back to the value of first-party data. in the case of amazon, their main first-party data is purchase history search history what you did not purchase because of price, because of brand, et cetera. so even just the fact that amazon has so much data about what you bought, when you buy it and what you don't buy, that data, we argue, enables them to
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sort serve highly targeted ads even not using other sources not on amazon or other browsing. your purchase history has a lot of value to advertisers. >> well, brian, amazon certainly has a lot of information about my family. thanks so much for joining us. look forward to learning more about that amazon tv, particularly the price point there. >> thank you all. speaking of streaming, netflix down today, but bullishness on the street continues this week. today jpmorgan upping its target following the two raises we told you about yesterday including atlantic, barclays stock's on a bit of a run. up 18% in a month. up 3% for the week that move, of course, taking year-to-date gains for netflix into double digits up 11% for a stock largely flat until recently, julia. so much news circulating in the streaming space. of course, hulu raising prices yesterday. a dollar a month
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hbo max going into europe. moving fast. >> yeah. it's notable that today hbo max announces expansion into europe and in october, and to me that speaks to the fact that the streaming war is going forward it's really competition for new international users. domestic market is relatively saturated, as we've seen netflix struggle with declining users in the u.s. over the past couple quarters there is a lot of pressure on what's going to happen in the fourth quarter for netflix, in particular they have so many new films coming out so many new series and films, and this is their chance to show that all of that investment in content is paying off, jon. >> yea hmm. should netflix have a tv i wonder could have had a tv. had roku, kind of gave it up anthony building it, decided to spin it out and sell shares. now it's a $45 billion market
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cap. >> hmm. >> timing. a lot of it comes down to timing meanwhile, nasdaq, taking a tick lower. down about 0.8 of a percent this morning. in danger seeing a four-day winning streak come to an end. more on the sell-off we're seeing in tech in just a moment. stay with us. competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday.
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theranos founder elizabeth holmes trial starts today. we're outside the courthouse >> reporter: jon, three years after the corporate collapse that stung silicon valley and the business world in general, reckoning begins for elizabeth holmes now 37 years olds founded theranos after dropping out of stanford at age 19. arrive add short time ago, with loved ones her mother as well as her partner billy evans. the two hand in hand tried asking her if she felt good about finally being able to get her side of the story out. she did turn to look at me but did not comment. that kind of been the way things are going. that's how things are likely to unfold beginning today and the next 13 weeks. agenda today after preliminary instructions from the judge to the jury, opening statements
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begin. first prosecution. outlining what they say is a multiyear fraud by holmes and sunny balwani, chief officer, goes on trial separately next year and then the defense's turn and we'll learn more finally about what holmes strategy will be this defense played things incredibly close to the vest hints we've gotten include the possibility that they talked about silicon valley puffery the idea she didn't believe she was telling lies to investors. she believed in the technology also the allegation that she was abused by balwani. he denies that, and could not form, as result, the necessary intent the jury that will hear this, seven men and five women chosen in a three-day process last week from a pool of about 200 jurors, and then some. most of the prospective jurors were familiar with some aspects of the case, but these jurors
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chosen all said they could put any preconceptions about the case aside. the witnesses could begin testifying as soon as this week, and the witness list includes some pretty bald-faced names henry kissinger former secretary of state james mattis, former defense secretary, before that theranos board member and before that in the military advocating for use of the technology in the field rupert murdoch, a big theranos investors and elizabeth holmes could testify in her own defense if it happens, that happens much later in the trial before that we expect the government will put on the stand erika chung a former lab associate at theranos, one of the key wist b whistle-blowers in the case. we expect that testimony to begin likely this week. >> likely to be absolutely riveting, scott. that witness, potential witness list, anyway, definitely going to get people's attention.
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thank you, scott cohen covering the elizabeth holmes trial. "techcheck" is back in a moment don't go anywhere. does your vitamin c last twenty-four hours? only nature's bounty does. immune twenty-four hour plus has longer lasting vitamin c. plus, herbal and other immune superstars. only from nature's bounty. woo! you are busy... working, parenting, problem solving. immune superstars. at new chapter vitamins we've been busy too...
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fractionally lower a couple calls on chip names deutsch reinstating intel as whole. stock has a new story, generally bullish on the country's ability to fix manufacturing. and a strong buy saying qualcomm is the only company that people play important iphone parts, more about the top calls on the street on we're back after this.
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a new report exposing a massive propaganda campaign on chinese social media eamon javers has details eamon? >> carl a new report from a threat intelligence unit, cybersecurity company analyzing things going on, on the web. they say this existing chinese propaganda network people knew about over the past months expanded and multiplied to thousands of fake accounts on social media big one ins colluding youtube, facebook and twitter and globally seven different languages. on 30 different platforms. saying 40-plus websites and forums have featured postings from fake bots basically operated by the chinese government some of the bots now focusing on things trying to spark real-world row tests within the united states around themes on covid-19 they say they've seen these calls for real world pro test and seen photo shopped images
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and the like not necessarily successful but lines they're pushing on social media, including the false idea covid-19 originated in the united states, there were covid-19 cases aboard the "uss tennessee" somehow proving the supposed origin of covid-19 in the united states. also that the covid-19 vaccines are dangerous, causing side effects that are dangerous for people up to and including death. so a massive campaign here linked to the chinese government by the company mandiant, looking at this social media spread of ideas trying to push some online themes into real-world protests in the united states something to watch here, guys. back to you. >> wow certainly something to watch for. terrifying stuff, eamon. speaking of social media, in auz australia says media companies can be held liable for stories
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on their facebook pages. the sydney morning australian appealed to the high court, and they could be held responsible not what the publishers were looking for interestingly. good for facebook's business model. do publishers stop posting, turn off comments and how will facebook and big tech largely face the drips and drabs of regulation coming country by country facebook shares down about 1.5%. >> australia quite a test for facebook lately. meantime, flirting way 1% loss on the nasdaq double the s&p losses and biggest large lgaagrds on your n as we go to break.e has pl
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semiconductor and semiconductor equipment shares down 2 f% to 3. and apple is expected to unveil latest updates to the iphone and apple watch joining us to preview the big event is joanne that stern what does apple have to do i don't hear anybody talking about what amazing things that they can do with 5g on their iphone, but it will be year two of that, but i do hear people talking about how they want a better camera even front facing. maybe especially front facing. >> yeah, i think either apple has the most boring iphone in store or fwhaechb able to keep this one really secretive and under lock and key so we're not hearing a ton about what this is going to be. but also last year, big year for the redesign of the iphone, new 5g features. yes, i think this year we'll get new camera features, a lot of talk about video recording and portrait mode and superior video calling and then there is
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obviously also talk about better processor, better screen but really we need to be thinking this is sort of an s cycle year, whether theycall i the 12 s or 13, let's not get our hopes up for some new crazy magic. >> and you say that and there is a narrative that apple isn't innovating, they should be, i don't know, making echos or what not. but we're kind of in a super cycle here and apple with profit and margins is still ahead of the pack so what are they doing right that we keep eagerly snapping up this thing that is apparently boring us? >> look, it is not boring us we use smartphones and so we upgrade our smartphone and apple pushes that upgrade cycle and the carriers push that upgrade cycle. carriers especially push the upgrade cycle with 5g. so we've also seen we're coming out of this period of the carriers pushing crazy incentives, crazy trade-in deals. verizon had a crazy one over the
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summer like $700 off of an iphone so, yes, there is a lot of pressure to sort of upgrade your phone and then you get a better phone. if you are getting a phone every three to four years, are you getting a pretty substantial upgrade over those three years just you can't look at last year's phone and think, oh, this is going to be magical and fly off my table >> so we know phones will be center stage and there will be other apple events later in the year that are going to be talking about other things like the ipad, but i have to ask whenever you have an apple events is there going to be one more thing, any surprises here, could we take the california streaming that there will be a hint maybe about apple tv plus >> i'm so confused about this california streaming it just seems like really not like the apple invite way. the invite said california streaming, usually it is a little more opaque and so should we sing a song
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not really sure. i think the one more thing this year is that this is really i think a big event for the apple watch. i think now what we're seeing is sort of a tick tock cycle. one big year for the iphone, one for the watch and i think this year we'll see a redesign to the apple watch, that is what a lot of the reports are saying. so that might be part of the one more thing i think we'll see airpods, that could be another small little thing. i don't think that we're seeing glasses or some other new product here >> and the discussion continues with their engineering chief going to ford, some of your colleagues on the street arguing it might be the biggest setback for any hopes that they eventually developen an apple . are you as dower on that front >> i don't know. i feel like earlier it was that the apple car is coming in 2024. so every day i wake up, is there going to be an apple car today,
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tomorrow i don't know seems like apple is certainly investing in the automotive space. whether there are moves in the engineers and executives mean much, i don't know >> on a separate note you and your colleague vs have a remarkable piece about tiktok, essentially the journal set up a bunch of bots and then watched to see what kind of content tiktok gave those bots in return and it is not pretty >> it is not pretty but thank you for bringing this up we just published this story this morning we set up all of these automated accounts, around 30 that had the age of 13 or under and what we saw was that tiktok does not discriminate in terms of the content it shows younger users versus older users younger users were still getting kept around drugs you can alcohol, sex, eating disorders and not just some of that content. if our bots or can accounts watd
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longer, they saw much more of this where the feeds were dominant with this type of content. tiktok says some of the video has been pulled down and they are working on some tools that would help with delineating between adult account and child account or minor accounts. >> it was such a dramatic heexpo say just as reports that tiktok has surpassed youtube in terms of viewing time per user do you see the same algorithms that are driving that offensive content as being the source of its success, are those two things connected >> 100% they are connected the algorithm which we reported on earlier this summer is so good at figuring out what you want to watch. and it is actually not that mysterious is what our report showed our report showed that it is very good at picking up what you like to watch, the amount of time you are watching and then sending you towards what we call
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rabbit holes or towards more of that contents. and that is what makes tiktok so addictive and for some people that is fun content. dancing, power washing tiktok. for other people as we show in this report, it can be more dangerous type of content. alcohol, drugs, sex, eating disorders. >> joanna stern, thank you and important story for sure and carl, i guess the good news is that tiktok owned by bytedance, a chinese company, certainly has the technology to distinguish between child and adult accounts because the chinese government wants companies to be able to do that and to sensor and filter material to make sure that it doesn't get to the impressionable eyes of american children they certainly have the technology >> yeah, julia, i'll let you weigh in as well but hard to imagine this is simply an engineering challenge. >> this is a massive challenge we've seen facebook have to deal with similar challenges about the moderating content on the flat form in the past. and we'll see if there is more
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of a regulatory crackdown on these issues obviously continued weakness in the equity markets, some firms warning on q3, today beat get gamestop, restoration hardware and lulu. thousand over to judge >> welcome to the halftime report front and center, is this as good as it gets for the economy and your money we're debating what lies ahead risks seem to be growing good to see everybody. let check the markets. we have a down day working here, dow down 155, s&p off by one-half of 1%, nasdaq has given back about 160 points. and that is a loss of 1% all right. jim, seems like we're asking the


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