tv Tech Check CNBC September 24, 2021 11:00am-12:01pm EDT
underperformer but only down half a percent right now poised four weekly losses. the s&p and the dow are lower right now, as well but fractionally and actually still on track as of right now for gains to end the week. that's going to do it for us here at "squawk on the street. "tech check" starts now. good friday morning. welcome to "tech check" i'm carl quintanilla with john fortt. all related activities illegal it's hitting coinbase and robinhood, as well. plus iphone 13 models hit the shelves today, but you may have to wait a while to get your hands on one a deeper dive on apple demand. and then one software name soaring. why an analyst says it's a must
own for growth investors, john >> we will start with stocks lower today. a selloff to start the week, a rally followed mike santolli is putting this week's volatility into perspective for us mike. >> yeah, john, pretty much a round trip for the s&p 500 from last week's close but a lot of movement under the surface the breakout higher in treasury yields might be one of the more significant ones and kind of says a lot about style rotation, things like that take a look at the year to date chart of the nasdaq 100 etf along with the s&p 500 value a lot of contrast here right here where the nasdaq 100 was really suffering into that early march, that's when ten-year yields were racing above 1.7. that was the huge selloff in treasuries and saw the value flying through there similarly another run above 1.7 into may and that's when they peaked and bottomed and that was the big run in big tech, big cap growth from that point on.
now, it's been a little more muddled since then not a perfect either or type market they're both higher even though yields have come up a bit. worth questioning right now as we've seen this breakout in ten-year treasury yields if that lasts maybe it crosses 1.5 is that the occasion for another one of these periods where large cap tech stocks take a little bit of a back seat to the more cyclical sectors, guys >> are investors reacting at all to what's coming or not coming out of washington around debt ceiling, around taxes. i mean, it seems like you said back where we were a week ago. so, i mean, apparently nothing that is actually happened is something to react to. but something down the pike that we should be concerned about >> at this point, john, i don't think the debt ceiling deadline is biting at all yes one of the several things that is hovering over investor psychology but we've been over it enough times. you can squint and look at some eveffects in the short term bon
markets and otherwise not really i do think there is a general, hey, maybe the easy part is over and maybe we got back huge fival parts last time and, obviously, a lot of wrangling over the debt ceiling before we get one passed presumably at this point >> appreciate that very much so much to keep our eyes on. let's turn to crypto crypto and crypto exposed stocks after the people's bank in china says all crypto related activities are illegal bitcoin and ethereum on track for their worst week since may seeing declines of 28 and 41% respectively names like coinbase and robinhood also in focus generating revenue from crypto trades although needham has a good note this morning looking at coinbase platform volumes and they say if volumes continue at the current pace for the remainder of the month, september will be the second best month for coinbase
ever >> yeah, i don't, i don't get it julia, do you get it china hates crypto that's news to some people the crypto is moving on that >> you know, yeah. china has said a number of times and a number of different ways it hates crypto and i have to say just this morning interviewed diamond hands, diamond hands is an entrepreneur who has created various different platforms in the block chain space and he said, you know, i've heard this one before the question is how much this time is different. you know, once china announced that it was going to crack down on the mining of crypto, carl, then the question is this dramatically different from that but diamondhands told me that he's keeping an eye on it, but notinteresting talking about watching the futures of bitcoin in particular jpmorgan earlier in the week suggesting that maybe that's showing an eroding interest by
institutions in bitcoin specifically and even that need to note mention a lot of activity is from l1 tokens >> makes me wonder when you get, you know, an asset that is moving based on something that should be obvious like negative news, then can you believe the upward movement when there's positive news either or is this a market where stuff just wants to move for no particular reason and do you have to be really careful about what your thesis is on what the underlying value is on everything because the signal that you're getting in this market, carl, just might not be telling you much for the medium or longer term >> yeah. very true. difficult market to navigate meantime, lina laying out our vision to crackdown on big tech. the chair laid out her policies including extractive business models and assess contracts of
unfair and it is echoed by a recent poll conducted for the future of tech commission which 80% of voters agreeing that, quote, the federal government needs to do everything it can to curve the influence of big tech companies that have grown too powerful and now use our data to reach too far into our lives however, on the flip side, a majority of voters also feel that breaking up the tech giants, quote, threatens our country's biggest drivers of innovation and growth and you can imagine some of the leaders, julia, of those tech companies arguing that very point that you need your giants to do well. >> carl, this is such a complex issue. the part of this that was most interesting to me was the way lina khan defined what her job is that is about not just protecting consumers, but sort of expand that idea of preventing harm to also be about employees and small businesses, as well. so, pretty broad definition there. and then there's also the question of like she wants to
get to the source of problems rather than putting a band aid as a solution and i think, john, this is going to be really complicated as we move forward because of that push/pull issue. the fact that people want to be protected. they don't want their data to be exploited and at the same time they want the convenience of all these apps that are on our phones that give us whatever we want whenever we want it >> i don't think this is being framed correctly as i track these issues it seems to me there is a question of rules of the road in the digital economy and that gets down to what can you expect on privacy as a consumer what can you expect on security as a consumer. what can you expect in terms of treatment and marketplaces if you're a small business or even big business but not just a trillion dollar business those are important questions and then there's the issue of either punishing success or when does a technology business get so big that it's a monopoly versus maybe there are rules of the road that you need to establish and you're trying to establish those by breaking up
companies. that doesn't make sense. i think as i do the reporting look through this stuff, some of the rules of the road stuff is not just about big companies, ransomware issues, security issues are plaguing smaller companies, too, carl sometimes even more susceptible to them and consumer data ends up being lost. so, maybe there needs to be a reframing and refocus on what the issues really are affecting consumers on one side and smaller businesses on the other around computation and expectations in a digital economy. >> john, one other headline that got lost in the course of the week the reuters headline that the u.s. and the eu are looking to work more closely in regulating big tech at the upcoming summit. areas of cooperation could include anti-trust and content moderation and semis, climate. not just solely a u.s. reg story. >> some of those things particularly when it comes to climate and semi conductors, julia, some of the bigger tech companies are making bigger
strides on because they have a lot of resources >> yes, but also if you look, john, at the way the eu has taken bolder steps to crack down on privacy issues than the u.s. has. i think we should really look at the eu as a potential leader whatever they do, it's likely that the u.s. could follow or at least these tech companies could be forced to take similar moves across the world because they need to have some consistency in terms of how they operate. >> true indeed also get a gut check on salesforce shares rallied 7% yesterday. the company raising its revenue forecast and put out a better than expected outlook for fiscal '23. piper sandler likes what they heard, too, this morning upgrading the stock from overweight to neutral. price target goes to 3.65 to 2.80 must-own asset for growth investors given it trades at a lower enterprise value to sales ratio than microsoft and adobe carl, i already thought it was a must-own for growth. i mean, if you like stocks that
go up, you know, and if you like exciting ceos and founders, it would have been a mistake to ignore marc benioff. >> a number of really positive notes today on crm and piper, of course, goes to 350 or 360 or something like that. analyst day was a game changer as management convinced people that the margin expansion story is real. >> yeah. i mean, some really compelling stories there from salesforce about what's ahead i think this idea that slac is going to be really essential to salesforce's growth. also i want to note something as the media reporter here that salesforce launched a tv service, a streaming video service salesforce plus. now, while this may sound like a niche product, they are offering linkedin style content salesforce sees itself as a resource for businesses.
they want to be a one-stop shop. they want to be educating everyone who works that company and this is potentially a very valuable marketing tool for them but i think the launch of all of this business content that's going to be available for free really speaks to how they're seeing themselves and playing a greater role in all sorts of different businesses going forward. >> you said might seem like a niche. you said might seem like a niche, you think they're worried? >> no, not at all. more like a linkedin product than like a netflix product. but i think what they're doing here they're not selling streaming video content, john. they're offering it as a marketing tool to show how powerful salesforce can be and i think this represents sort of benioff's business of being an essential tool for all businesses, john >> i don't know. linkedin like. maybe. is ryan worried? i'll try to find out but salesforce has a lot of reach, that's for sure
>> has a lot of reach, indeed. john, the question is at what point you start making content for salesforce plus instead of linkedin now, meanwhile, after the break, completely running blind? facebook struggle with apple's new privacy rules with stocks down 9% in september "tech check" is just getting stard.te 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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robinhood had some trouble telling a consistent in january after it paused trading with a spike in volatility around meme stocks and now the company was not being honest with its users when explaining why. kate rooney has details. kate. >> john, this lawsuit gives a new look inside the room or at least the chat rooms over at robinhood during the gamestop short squeeze. conversations show debates over how bad it could get and panic over capital requirements and a direct contradiction of what the ceo told andrew ross sorkirxn at the time a major liquidity issue and he denied that in an interview with andrew robinhood did move to change stocks like gamestop and amc to what they call position close
only meaning people could sell but they couldn't buy. in response to that decision, another executive says we're going to get crucified for those restrictions it's a, quote, horrible look they say for the wider brokerage industry meanwhile the coo of robinhood financial, a subsidiary of robinhood saying the company was too big to shut us down. he was referring to his clearance agency in another conversation they talk about implementing something called code yellow and an engineer says that maybe we should consider an all hands on deck situation tenev agrees and says only the paranoid survive all of this came out as part of discovery in a class action lawsuit. the plaintiff's lawyer argues that robinhood did not do enough to protect investors and, quote, kept its doors open unbeknownst to the general public while it was teetering on the verge of collapse in response, robinhood says we dispute the plaintiffs'
allegations. the communications are consistent with robinhood's focus to mitigate risk guys, back to you. >> to me this sounds like a code red, kate. my question is the company has changed quite a bit since they had this moment of crisis about nine months ago. but do these interactions, do those messages reveal persistent problems that could still be at the company today? >> so, that is what the lawyers argue. it is sort of a look at this one time event they called it an event at the time and the company argued that there was nothing they could have done. this was unforeseen and that all the measures they had in place were appropriate and the problem was solved the lawyers, meanwhile, say that some of the conversations show that the executives here knew this was coming. they called it a tidal wave of volatility and said there wasn't enough attention paid and meanwhile were focused more on things like the super bowl ad, marketing and adding new users
so, a difference of opinion there. but it's interesting we had bob pisani reporting on this and we are told they have access to these documents. it will be interesting to see if there is anything in there that actually comes out in a follow-up report from gary gensler. >> fantastic fantastic reporting, kate. thanks so much. meantime, our next guest says apple's attempts to knee cap advertising is working let's bring in cnbc contributor and founder of substack newsletter big technology alex great read here. the issue i see is that it is not that facebook's ads aren't working but they can't track how well the ads are working do you think facebook will be able to fix this measurement issue? >> i would say they're one in the same, right. because what happens an
advertizer runs an ad on facebook and they can determine if they were effective that way and optimize space off of that when they can't measure, they can't optimize effective and the ads work less good facebook will move from what it calls a deterministic model and what that means in layman speak is we're going to move from what we know to what we think based off of sophisticated models. can that work? maybe. but it's certainly not going to work as well as it has worked in the past when facebook knew for sure when they were working and when they weren't. it's a major challenge for the company. >> alex, you say in your newsletter that you believe this apple ios change could have irreparable impact on facebook but facebook has two things working in its favor massive reach and, two, it has some time to figure out a solution to this do you think that advertisers are really going to flee and not come back?
>> okay, so, here's what i think could cause irreparable damage the reason is this a wake-up call for performance advertisers. the people who want you to buy right after you click because they've been so reliant on facebook because facebook performs so well so they haven't really diversified their channels what this is showing them now it is working less good and what this is showing them, maybe we need to be in snapchat and tiktok and maybe e-mail and that's what i heard today or this week. is this going to destroy facebook's advertising business? hardly i think they're a $30 billion quarter business that's bringing in a ton of ad revenue, but it can hamper then and send advertisers else where. on the bright side, i think it might actually improve advertising. when i heard in my conversation with advertisers this week instead of optimizing based off of data, they're opt mdzing based off of creative. the system is optimizing and seeing what is the ad that actually resonates with people the most versus, you know, based
off of the way it looks instead of based of who they are i think that's a really positive sign for the advertising industry if that is what happens. >> as a consumer break out the world's smallest violin. this is about me getting to choose what happens with my data and whether i'm being tracked all over the place you know, apple is asking me when i open up ios 15 about e-mail and about various things. i like that. so, if it forces people to be more creative about the effectiveness of their advertising, i don't care. >> no doubt. well, i think there's two counterveiling factors here. the first one is what facebook always says and i think there is some truth to it you want relevant ads and you get relevant ads when the advertisers know who you are other side of it back in the day when advertising was in its hay day we ended up enjoying ads versus right now people hate them we enjoy them because they were beautiful and instead of spending all the time figuring
out what data gets you the most optimized ad, you spend your time if you were an ad agency on what image is going to resonate most with the public so, we might end up getting stuff that is less relevant to us but is nighcer to look at ani think that could be a good thing for us consumers at the end of the day. >> i don't want relevant ads you know, when the ads get really relevant, i get concerned. right. maybe give me ads based on what i'm looking at not based on who i am and all the things that you think i ever looked at as you were following me around that's creepy to me and, you know, the idea of them being able to pivt and look for other signals that are less personal maybe not as derived from location and other kind of personalized data, that sounds good to me and what a lot of industry groups and governments perhaps are pushing for. >> no doubt. yeah i'm not going to sit here and defend the state of internetted
avertising i think everybody knows it is terrible if we get back to a place where advertisers run less and creative optimaization where you put 100 different types of ads and it shows the one that resonates the most with people so, yeah, i think that the relevant ads thing, there is something to it but by and large, i agree with your position wholeheartedly which is let's get back to an advertising industry that didn't rely. and show us ads that we like to look at. that's how brands should win over our affinity not by matching their ads to what we're doing but by telling us a compelling message and one that g gets us to buy for the right reasons. >> well, alex, i like ads that are relevant and are things i like to buy. fascinating space to watch thanks so much for joining us. >> thank you coming up after the break,
why iphone wait times are going to be longer this year and what that might mean for shares of apple. plus, a day after gouggenhei upgraded our projections are likely too high as the competition increases. the stock is giving back about 4% today we are back after this as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold.
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welcome back to "tech check. resetting here near the bottom of the hour. nasdaq so far underperforming the dow and the s&p for the month, although we are still just 2.5% from all-time highs. we'll get more on what has been a busy week for the markets in just a moment, but, first, a news update with hahel solomon >> here's what's happening at this hour. new home sales rising for the second straight month in august. reporting 1.5% increase even as rising prices continue to sideline potential buyers. median price of a new home ticked up in august to nearly
$391,000 that's a jump of more than 20% over the last year treasury bond yields continue to surge following the fed's decision to soon begin tapering asset purchases the ten-year note has broken above 1.45% the highest level since early july shares of nike extending losses following disappointing quarterly sales and forward guidance due to supply shortages. nike down nearly 7% today. stock also on track for its biggest daily loss in 15 months. the washington capitals have signed a key sponsorship deal with caesar's sports book. the agreement makes it the first american sports team to put the logo of a gambling company on its game jerseys earlier this week the sixers also did something with a crypto company on their jerseys an interesting week in sports and investing. >> it has, indeed. rahel, thanks. now the new iphone hits stores and wait time for a
iphone is stretching into october but we've all been wondering and investors are these wait time a sign of high demand, low supply and combination of both? what is going to be most popular those at the high end that a big impact on margins. joining us now with some data is krish. you think that based on the supply chain checks that you've got that they actually built significantly more than last year that is good news for investors if that pans out >> thanks for having me on i would say that the builds have been pretty strong but keep in mind last year and, obviously, along with the covid supply chain challenges even though the form was released in october by the time china and already november so you definitely a month or so loss last year and the numbers are looking pretty good and for what it's worth, it's iphone 13
and still downloading from the icloud . >> do you have a sense of how much of the build is towards the high end versus the lower end? it seems like there are longer wait times for the high-end phones, which is good if they built a lot of high-end phones but maybe if they're having trouble with components on the high end or didn't built as many means something different. >> yeah, i think it's too early to, you know, figure it out. i would say definitely more towards historic being the pro side and regular i think that seems to be the trend so far so, it's kind of what it is. but keep in mind the overall securing of components of iphone in general has been better than, you know, apple's other products like the ipad or the mac book, et cetera. definitely seems like in general
it is actually the better situation for the iphone and lean more towards the iphone pro at this point. but i think it's too early to make the call. >> krish, right now it is early but at this early stage, where do you think the basket of opportunity is deeper. in apple itself or the component makers >> it's actually a really good question i mean, i guess it really depends on how you're going to look at it obviously a large cap, mega cap i would probably say i still like apple as a good data player the one thing i would keep in mind is your point, carl, started with the trend of apple. typically the stock does run into the iphone release of like the few months before the strong period and typically to hold for the stock. season strongest quarter of the company is actually the opposite for the stock. so, i think the reporting they're trying to do sharper positioning and probably better off in the supply chain but i
think it is a great story but keep in mind that just the seasonality of positioning all this gets you away from apple. >> krish, just to follow on carl's question, though. looking at the broader ecosystem. what is your outlook on component makers and how are those stocks impacted from some of the trends we're seeing in the data >> sure, as of now if you look at overall supply chain the one place the strength has been very strong and consistent is the iphone we did see like some movement and samsung and start picking up in china you've seen some movement but apple has been pretty ca consistent keep in mind, seasonality does
play into effect and seasonally slow and also the supply chain but in general i would say anyone should do well especially the numbers we saw not just globally >> krish, if i recall last year with apple stores closed, there was some negative impact that apple saw to accessories like apple watch that people like to browse in person i wonder if you have any insight on either attach rates or the degree to which that might be different now with, you know, not that the pandemic has passed, but there have been adjustments. stores are open. >> i tell you, i think you're fully right. i think any of those facilities always had better sales when the stores are open because it seem proactive buying it. now that the stores have been open, the trends are improving the only caveat i would say is
that i think the push and pull right now is the stores are opening up which is a positive and then you see improving momentum in the available segment but especially on the available side and a great example is that is one of the reasons why the apple watch is not available today. the iphone is available, too >> well, i guess you can attach it if you can't buy it yet krish sankar, thank you. after the break, we're live at the courthouse as witnesses begin testifying against elizabeth holmes don't go away. (vo) at t-mobile for business, unconventional thinking
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the trial against theranos founder rolls on the first of many high-profile witnesses. scott cohen is outside the courtroom in san jose with more. scott, with everything we learned this week regarding the testimony was truly gripping >> yeah, there's been so much of this this is officially day ten of
the jury trial elizabeth holmes arriving a short time ago as is typically the case arriving hand in hand with her mother. we're kind of in the early going here remember what the government has to prove here is not only that elizabeth holmes was in control of theranos but she knew the statements she was making to investors and doctors and patients were false. we have seen insiders talking about just that. we expect this morning to hear from a former theranos lab director but also this morning we got what we expect a number of bold face names james mattis the former u.s. defense secretary before he was defense secretary he was theranos board member and investor and before that he was a four-star general. and in court before a very attentive jury he talked about how he first came to meet elizabeth holmes back in 2011 when he was still in the military and instantly taken with the prospects for the
technology for blood testing both on the battlefield and to lower health care costs in general but ultimately he testified as the negative reports about the company came out in 2015 that he didn't really know what to believe. we're hearing a lot more about also the relationship between elizabeth holmes and the former chief operating officer sunny balwani in court and the texts they were uncovered earlier this week really thousands of these text messages over a period of years with the two collaborating about the company and where it was going and also dishing like the day in 2015 when sunny balwani saw her at a starbucks and text she was wearing sweatpants and looked weak, i think maybe that's how she looks without makeup yeah, she always dresses up. holmes part of her defense may be that she claims that balwani
abused her for many years and because of that she couldn't form the intent to commit a crime. balwani has denied that and we'll see how that goes and how the texts play into it and this trial likely to go until december guys >> thanks so much, scott and check out shares of the iac reported in talks to buy magazine which is valued at $2.5 billion. sold off high-profile brands such as "sports illustrated" and "time" but still owns "people" magazine "techcheck" is back in a moment. emerson. consider it solved.
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of critical vaccinations for the world. emerson. consider it solved. cnbc celebrating hispanic heritage month and diverse executives in tech drift is one of the few latino led startps that reached unicorn status since 2015 $15 billion raised by black and latinx founders representing of the venture capital raised in that time. joining us now is drift david cansell. before we get to your business, wh i want to get your perspective as a real outliar in this world. can you give us some perspective on what fund-raising was like for you and what the real hurdles are that need to be addressed in this industry >> sure. i think looking back i can see where kind of those hurdles were at the time i had to put my
blinders on and kind of get through it and try to succeed no matter what. but looking backwards i could see it was hard for me to naturally break in and make connections and we just had to find different ways. you know, i always say it took me a decade of my career before i met someone else that looked like me in the tech industry, which is bizarre to think about now. but now, you know -- >> david, i wonder whether or not you think that given that experience you should be more attentive to hiring from the latin community than some of your peers or should it not matter should there be more jus more regarding your recruiting system >> we think we have a responsibility to not only focus from a hiring standpoint, but also to focus from trying to become role models for those people who are in grade school,
middle school and who have made a decision to go into s.t.e.m. like we have that they can do it, as well. >> tell us what drift is doing with conversational marketing and sales and how either reliance on your software offerings or maybe the demands for new types of features and services during the pandemic has played out for you >> sure. what we didn't know is that we all fast forwarded by a decade in terms of having enterprise companies adopt a digital approach and really to understand that they could actually sell digitally without getting on planes and without meeting people in person that they could sell the biggest contracts and biggest deals and we could do that so that happened over this period and so what we do is we help connect buyers and try to make it simple for businesses to buy from other businesses by doing the thing that we've always done for all of time
which is to have a conversation and to actually build a relationship and make that connection we just happen to use technology to accelerate that >> now, david, earlier this month you announced a big investment partnership with vista. tell us what that deal is going to do and where you're focused on growing now >> yes so, that is a big thing for us you know, we made this incredible partnership with vista and, sorry, there's music playing. with vista and it's helping us break into an understanding what we need to do to build a public company. so, that's a big one for us. >> well, david, we look forward to watching you continue on that journey. thanks for joining us today. don't forget to follow and subscribe to our podcast you can listen any time anywhere wherever you download podcasts dow is down 41 and "tech check"
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programming note "tech check" is going to be live from the code conference in l.a. next week. big interviews with tech executives and investors i'll be alongside in conversation with amd's lisa su. also taking the stage there elon musk, satya nadella and we'll have more on netflix's content push after this break. techcheck will be right back network. s mg like 2 lines of unlimited for just $27.50 a line. only at t-mobile. the internet wasn't built to be a place of walls. but then the walls went up and choice became limited. until now. now we're in a new digital landscape of emerging channels, data-driven campaigns and measurable outcomes. welcome to now - the new open web.
♪ ♪ tomorrow, netflix is hosting its first-ever global fan event calling it tudum after this sound. >> that is the sound you hear any time you stream anything on netflix. in this streaming event, tomorrow is expected to last three hours. stars and craters from 70 different series and films will connect with their fans to build awareness about netflix's brands this is the latest move from the stream tore bring its plans off the platform earlier this week it launched
"eden" on oculus and building its library of brands buying "charlie and the chocolate factory" and the rest of the roald dahl saying that it will spend $17 billion on content this year predicting all that content will drive subscriber growth so taking brands and to me that sounds a lot like a disney-type move >> yes let's talk about netflix here. with us to talk about it, the head of internet research mark mahaney. what a week of news flow whether it's the kenya news or the gaming or roald dahl or the growing consensus that they are on a path toward self-funding content. is that where you are? >> yeah. you didn't mention that "tiger king 2" is coming out in the big
quarter and that's a big name for an event like this and what we'll find out is the timing of some of these new launches that are coming out one is the crown, ozark, stranger things. when will we get things and the content's improving and the subscriber growth can continue to recover >> we've talked in the past, in years past about the seasonality of subs that i think q4 is historically strong. has that changed >> no, it hasn't changed at all. and so -- can the company guide toward 7 million to 8 million subscribers for the december quarter -- or the september quarter. if they do, the stock goes materially higher. if they guide materially below that, the stock's going back to 500. >> and mark, there's always such a focus on subscriber numbers and also on the content that drives subscriber numbers and
looking at the game move in particular and the acquisition of roald dahl, reed hastings mentioned very much in passing he would be interested in looking at them. is he making any changes here? >> i think they're expanding their content library. i think that's how we view gaming, whether gaming really works on net flicks or not i think it's on the unknown. i don't think the company knows. it's a risky bet, but it's one that they need to make and then f-1 to me is an example of netflix impacting the ziet geist. look what they've done with f-1. they've made formula 1 popular among viewers. what a success for netflix. >> mark, it seems like some of
netflix's moves is towards smoothing out these hit-driven spikes and maybe some of the churn in between shows and it's a long way from disney that have the bucket that are very clear, marvel, lucas film, princesses and high school musical. you know what the content is, the brand is strong and you know who it's for does netflix need to build out these portfolios of types of content more clearly demarkated here >> i complete agree with your point, john. netflix wants to go from 2 hun million to half a billion in ten years. they have to have ten pole content productions. so they have to have that kind of marvel library and hopefully they're building that now with things like "stranger things". >> mark, i loved your note earlier in the week when you hosted professor demotorin from
stern and they need to find a be better balance between the buck shot and the slew of cop at the present time and the rifle like strategy of hbo. do you agree with him? >> not on valuation. i think he got it wrong, but i think he's right in terms of the way they should approach content and the way they should disclose their content spend plans and the way to think about netflix is they have 17 billion shots on goal and we think that they'll be able to get and some of these come through and i don't think it's as a rifle shot as he implicated >> mark, as we look at these show and content announcements tomorrow, i'm wondering if you can put it in the context of the competitive landscape because now netflix isn't the only one putting big, expensive movies out right away and now they're up against hbo max and getting rid of the theatrical window altogether
is that going to prove a challenge for netflix next year? >> i think so. the only hedge that netflix has is that what's really replacing linear tv isn't netflix or disney plus or hbo max it's the streaming bundle and the survey increasingly shows consumers want to buy two and three subscription services and they'll certainly be one of those. >> mark, what a week, and such a busy time and always good to be with you, thanks talking netflix today. markets trading the flat line this morning s&p is a touch screen, but literally by 0.01% as we try to hold break even levels next week will be busy we'll have micron and maybe key votes in congress and code where we'll hope to hear from elon musk sarand, s and lisa suh.
>> yes, we were talking about supply versus demand questions and with the iphone and think, with the ps5 and the xbox, julia, amd is very much a player in that. >> we'll get a lot more next week from code, carl >> let's get to the half >> all right, carl thanks so much welcome to "the halftime report." front and center this hour and whether the stunning comeback means stocks will take a fourth quarter jump we'll debate that with our investment committee today and we'll be joined a little bit later by one-time evergrand holder and we'll find out how he thinks that whole story is about to unfold. with me for the hour today jenny harrington, steve weiss and john najarian, and we're still positive for the week. 4442 is the level we need to stay above we arehe