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tv   Tech Check  CNBC  October 18, 2021 11:00am-12:01pm EDT

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that morgan, so interesting to be together with people yet again and talk a lot about esg here, a lot about diversity and inclusion, clearly important issues in corporate america and ones reflected here at the institute's meeting. >> yeah. we're looking forward to all of your continued congress. that will do it for us on "squawk on the street. "techcheck" starts now ♪ good monday morning welcome to "techcheck. i'm carl quintanilla with jon fortt and diedra bow is a who is back after the birth of her baby roman. dee, great to have you welcome back >> happy to be back. >> downgrade for disney. barclays turns bearish on long-term streaming outlook and netflix gets a boost the other way. two hours away from apple
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unleashed. new macbook pro perhaps. all that means for apple's long-term investment. exchange for crypto goes public as bitcoin hits 62k dee, welcome back. >> bitcoin has gown places while i've been gone our feed is going to start with streaming. and the streets you call it anxiety on disney. ar clas downgrades thestock today over long-term streaming concerns down nearly 3% slow in growth disney plus the chief catalyst saying it may be tough to keep pace with netflix, which by the way gets its own boost this morning ubs reiterating the buy. bumping the price target up to 720. julia is here to break that down as well. and julia, ubs really points to popular series, new hits as driving that sub growth and you know, netflix still basking the success of squid game and over the weekend another series, you,
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an existing one, topping the charts >> that's right. welcome back, deirdra. so great to have you back. and i think you really nailed it the question iscontent and subscriber growth. how do those things interplay. i think with netflix we saw with squid game you can make content that's relatively inexpensive that has a huge outsized impact on the subscriber base the question, though, is how much is going to add new subscribers, particularly in the u.s., dee, because here in the u.s. the market is so incredibly saturated. so even though there's broader optimism netflix's ability to grow internationally and have pricing power, the question is how much the u.s. market hit a limit and is saturated and that is really going to be key number we're looking at when the company reports earnings tomorrow afternoon not just overall guidance for subscriber growth but particularly here in the u.s., deirdra. >> julia, wait a minute. about a year ago wasn't all th talk about how netflix hadn't really moved
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it was slumping. it was too dependent on being driven by hits and disney had this big library and that was the reason to bet on it into the future now netflix has a hit. so it's up and disney is down? can analysts be consistent here? what are the fundamentals that investors should really care about? >> well, i think what we're really talking about, jon, is how much of a pull forward effect the pandemic had. that's really what a lot of this comes down to. yes, there's content how much can content drive growth, but also how many of the subscribers that would ever subscribe to netflix or disney plus have already done it because they were stuck at home streaming a lot of movies and tv shows over the past 18 months or so so i think that these are different services disney has much less content its content is rated much higher, considered much more high quality and one pressure that disney has is being able to ramp up the creation of content at that same level, where as netflix already had a lot more content, is already a lot more international
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and now we see disney investing more in local language content particularly in asia so jon, i don't think these things necessarily are contradictory. i think everyone is trying to figure out what the impact of the last year and a half has been. >> julia, today it's credit swiss says the quarter overall on platform will be the slowest in net ads they think the netflix may be the only one that has added sub zero year on year and quarter on quarter. the question is does netflix strategy of this buck shot pattern of just drowning the consumer with content, is that showing itself to be the right one? >> well, remember, one reason we're expecting to see growth from netflix in the back half of the year is because netflix's growth in the first half of the year was so slow i mean, this was a company that had so many production delays, so many different factors that impacted the way they were able to roll out content in q1 and q 2. they said don't worry, it will
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come back in q3 and q4 there's a lot of pressure to ramp things up from disney we heard from the ceo that they would eventually hit their long-term targets but there would be choppiness near term that was translated by analysts meaning it will be a rough couple quarters but we'll get there in the next couple years so it will be a fascinating quarter both in terms of this question of pull-forward and also just how much content and what type of content really works, guys. >> okay. yeah it still feels contradictory to me because netflix is pull dinged for that pull forward i get you. great perspective. now turning to apple unleashed event set to start in less than two hours. cnbc contributor joanna stern is with us. joanna, to me this event is really about the chips more than the machines themselves because in a way, these are higher end so they're going to belower
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volume, though the profits are likely to be nice, but we're going to get a look probably a better look at apple's premium level ambitions for its home grown chips, right >> absolutely right. all about the chips. which i brought a bag of chips or something to talk about the excitement about chips today i think we should take a bet how long is apple going to spend talking about this speeds and feeds and the actual silicon today. my guess is at least 15 minutes. and i think that is all about their excitement, their want to push of their own synergy between the software obviously the hardware and the services, but now with that silicon being able to really take on the intel's and the other pc manufacturers who are reliant on their partners like intel and amd. >> now, we're used to the mac sort of getting some ideas from features from the mobile side from the iphone, bringing the app store to the mac, bringing chips, home grown chips to the mac but now it seems like
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performance wise apple is doing some stuff on the mac side that's migrating back to mobile, particularly in the ipad side. so what do investors really need to pay attention to on the engineering side to get a sense of whether apple has a significant long-term advantage here >> i think -- well, we are seeing that. but i think in the macs, that's where this sort of renewed energy because that is the system where you want -- these are the systems where you want that power where that power and apple's ability to say, hey, we can be hugely dominant in this space where the pc manufacturers can't be is an interesting way, is an interesting way ahead. yeah, we'll certainly see stuff come back to the ipad, some of the graphics improvements. a lot of the push around, things like a.r. and v.r. immersive type of content not going to be helpful on a mac where you push on those ipads or more interactive graphics high end features >> joanna, we were just talking about lead times on iphone and
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just as a way to look at supply in general through the lens of how long you have to wait to get a new model of the 13, it's getting a little better but still several couple of weeks at least. i wonder, do you think they're going to comment on how supply is impacting them? >> i don't think they're going to comment on it i think these systems what we're expecting today is 14 inch, 16 inch mac book pro available for preorder the next couple of days and shipping if next couple weeks or next week like usual apple cycle. we won't know until we see the shipping times delay or pushed back a lot of people will rush to buy these because of that fear plus, also just a lot of pent-up demand for these mac book pros from the enthusiast community. the tech twitter is excited about very unique features sd card slots coming back, charging might come back. i think we'll see some of the excitement from those early adopters really quite quickly
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out of the gate for sales. >> yeah. there's been a lot of enthusiasm, joanna they listened to the community, you can imagine the excitement to follow as well. but i want you to put this in the context of the privacy changes that we've seen apple implement and its increased its share of the mobile app advertising business which has been interesting how might laptops or any announcements today play into that >> hard to say obviously push around the app store has been big for apple some stuff we have seen in the last couple weeks talking about the privacy changes made to ios 14.5 impacting apple as advertisers try to move towards app store promotions that's the really in they have on the iphone. not really the case on mac right? they've really been trying to build the mac app store especially around these new chips last year where they were really touting, hey, you can get iphone apps, iphone apps on your mac. that wasn't so successful. i've been an using a mac the last year and i never use an
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iphone app on here i think on the mac side, that's a little hazier territory than ipad or iphone >> joanna, from the user point of view, what's your assessment of how apple is handling this transition from intel to m1? in the past there have been em mu lay tor issues when this happens. it's a struggle sometimes to get the high end developers to start writing their software directly to the new chip. based on what you've been hearing from users about any compatible issues they've had or upside performance improvement, what grade do you give apple >> honestly "a." it's been kind of shocking using this system i've been using m1 mac book pro for about a year i've run into very few if not any compatibility issues with other apps those that have wanted to run windows have had issues. there's been sort of compatibility and running parallels and boot camp was taken away i do get emails from readers
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about those things but just the erd apps working on this system it is actually amazing how they seamlessly did that transition >> joanna, i'm curious, you mentioned sort of the enthusiasm that some of these new products might be greeted with. there was some commentary last night out of a widely known apple watcher who tried to argue that most of the demand for consumer electronics replacement has been satisfied in the last two years. so if products cannot provide innovative experience, most of the demand may decline more significantly in this era where things are costing more. do you think we sort of got our fill as we all upgraded during the pandemic >> it's a really good point and i think we're going to be seeing that especially -- we have seen it with the phones we have seen that in some of the other sort of categories that people upgraded in, monitors, other types of consumer electronics they needed during the pandemic i think with laptops, we're also seeing this and desktops we're seeing this from microsoft, too. a want to push for people to
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then go another step up. i think a lot of people bought, but then some people held off on some of these changes. and thinking, okay, i can get through the next couple months on this pc or companies who are buying sort of just tamped down what they have in terms of their fleet of laptops so to answer the question, i think that for this specific type of model, that's aimed at pros, that had some upgrades we haven't seen in the last couple of years or at least that's the reports, i think that this is a substantial upgrade that people will look for. >> right joanna, we talked macs, but there's also rumors we could get a new version of the air pods today. i wonder how likely they think that is and will it cause people to upgrade from ones that they currently have >> well, considering i can't hear you in my right ear i'm hoping for this because the battery in my right air pod is completely dead and these are the regular, the second generation air bods if you can see them those -- that's what's said to be upgraded not the pros
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so entry level 150, $170 air pod i think those will fly off shelves for the holiday season this really comes back to also some of the repairability issues that i dinged apple on, especially on air pods you can't bring these in and i can't get a new battery for this one which is sort of a forced upgrade. so, downside on that i think for the environment and sort of that strategy, but plus side if you need new air pods you'll have new options. >> of course we look forward to reading what you think when -- andseeing on video what you think when you try it all out. joanna stern, thank you. nasdaq is back in the green after three-straight days of gains to end last week plus, more on the move in zillow stock is down 10% as "techcheck" is just getting started. ♪
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experience all the nba action with xfinity x1 - track stats and scores while watching your team live. to upgrade, just say nba league pass into your voice remote or go online today. time now for a gut check on ride sharing uber and its dubai base subsidiary hit a tax bill that could reach $100 million
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saudi arabia targeting tech firms about how to calculate what taxes the companies owe this morning uber shares are falling oh about nearly 3% and it has been a very rough year for this stock as well. it is down nearly more than 7% remember, that the price was $45. so, we are just about $2 above that, more than two years later in terms of valuation the price to sales ratio currently at 8. lyft is at 6 by the way, 6.5 and dash almost 16 remember, uber is more international, more diversify shares of lyft are down also this morning nearly 2% also the broader market year to date but they are positive on the year karl, back to you. we have fancy new shots here in san francisco. you'll be seeing more of these. >> look at all the toys. where does she get those marvelous toys look forward to more of that. let's start with the feed. housing, zillow biggest intraday slide amid reports it plans to stop purchasing new homes
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through the end of the year as it works through the backlog of properties company stock dropped about 30% this year through friday's close. nearly tripled of course in 2020 hot on the company's heels is rival open door who acquired more than twice as many properties last quarter with no sign of slowing down there joining us now 75 and sunny zillow cofound ir spencer raskov great to have you back good to see you again. >> thanks. thank you for having me. >> can you clarify the issue is this really about a backlog >> yeah. so, what's impacting zillow today is the home buyer not because there's too little supply of homes to buy because there's been too much demand so re-enforces things i've been saying dating back to when i pivoted zillow into the ibuying space. number one, there's enormous consumer demand to sell your home to ibuyer because it's such a better consumer experience than selling your home the old way. but number two, to be successful and profitability you need
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extraordinary local market expertise and operation. i can say they are focussed on real estate ground game. i happen to think this current pause at zillow, still our shareholder is company specific. meantime, good for open door in fact, offer pad just expanded into california today. launched four new markets the last two months. they're growing really quickly i think it's temporary it doesn't change my investment pieces on the overall space because this method of selling home will continue to gobble up market share overtime, zil low and others will continue to benefit from this consumer trend of selling your home in this way. >> what about those who want to say it's an argument some sort of macro indicator where housing is going in general? >> yeah. well, housing is slowing we have been on this tear i think 10, 20% year over year appreciation and it is starting to slow. i don't think you'll see home price declines but lower rate of
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appreciation and more inventory on the margt 1.5 million homes that were in mortgage forbearance can now go through foreclosure process. start to see more inventory coming starting to slow the rate of appreciation. but ibuyers doing a great job on the ground buying homes quickly, renovating them or reselling them, they'll do very well in a slowing housing market because in a slow market the value of an offer from an institutional buyer is more attractive to a seller right now very hot market a seller can just list their home and get a high price without having to sell to ibuyer little countercyclical ibuyer will do well through downturn i think and i have done a lot of work on this category and very invested in it i think it will do well through a downturn. >> spencer, give us the worst case scenarios here because as a long-time business reporter when i see inventory stack up for reasons that are external to maybe the market forces that the
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business had in mind when they constructed their model, it raises an eyebrow. even if this is about being able to get houses ready and the availability of the work force to prep them to renovate them, what's the worst case scenario if any of these companies ends upholding inventory and economic conditions change? >> yeah. so they have to work through their long tail of inventory there are homes if you pay too much then when you resell it you'll lose money. so i think the zillow clause is working through their existing inventory. i do have better insight making sure that offer pad buys homes, renovates them and resells quickly and doesn't have inventory. i think this pause is temporary at zillow and see them work through the long tail of inventory and probably restart ibuying late this year and early next would be my guess i'm not on the inside. i used to hate when our stock was down 10% when i was the ceo.
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now i'm not the ceo anymore and i can come on and prognosticate, but, i'm not on the inside obviously. so you have to ask zillow. >> it's good you can, spencer. i'm sorry you felt that way previously as you said, you're not on the inside but i do have a question on competition you said this problem is probably temporary but when we look at the number ofs from the second quarter, zillow acquired more than 3,800 homes in q2. competitor bought 8,500 and its doors are still open for business that seems to be a little shade being thrown here. i wonder does the latest zillow pulling back open the door for open door, i suppose >> i think it does and for upper pad as well. up epad this morning announced engs pangs into california and it continues to be open for business as well i think this is an advantage to upper pad and open door. i'm a big bull on this category as i said still a zillow shareholder and offerpad
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shareholder. i think zillow will work through and do just fine on the other side yes, absolutely. during this period of pause i think offerpad and opendoor will benefit from it. it is hard to stop this machine and restart it we saw that during covid where all three paused and restarted so i was as surprised as anybody about the news and i do think it will be -- take little time to restart that machine but what it really says to me is -- i know this might sound counterintuitive but it re-enforces the fact that this is something that is so attractive to consumers that they have overwhelmed the machine with supply or demand from the consumer standpoint more and more people want to sell their home this way and zillow is pausing because they had so much demand they need to swallow it or they can continue growing. >> right >> spencer really quick before we let you go, i would love to have you weigh in on our on going conversation about facebook and instagram there are a couple new reports today, one is the "times" saying the company was worried and losing young people on insta
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the yojournal looking at engines who internally arguing they may never stop the flow of hateful content even with the help of a.i. where are you what they need to do and twrying to do? >> they're trying to parrot inappropriate content. it's impossible. it's always going to be very difficult. i've always said advertisers follow audience. in years past i have been on the show talking about issues facebooked election hacking, advertiser boycott, facebook has been bullet proof. why? the media talks about how bad facebook is, the data shows that consumers don't really care. the time spent and engagement levels are still off the charts on facebook and instagram. as long as the audience is there advertisers follow facebook has to worry about two things only. regulatory black swan event,
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requirement to spin off instagram or warning label after certain amount of time spent on instagram. those things are very unlikely but possible the second thing they have to worry about competition. tiktok or snapchat or vertical specific recon food these are all starting to chip away at facebook's audience. and so, if you want to know what's going to happen at facebook you have to look at facebook's audience engagement and traffic members. when you start to see declines there then you should worry. one last perspective, i talked to companies in my portfolio all day that are big facebook advertisers. they are not talking about the facebook whistleblower, not about whether instagram is bad for young girls. they are talking about the ios update making it harder to measure the efficacy of facebook and the facebook ctm and cpls are going up, it's becoming less useful, less valuable to advertise because of apple changes. those drive advertisers away watch the audience numbers then you'll follow advertisers
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then you'll be able to see what's going to happen to the facebook stock. >> that's a good reality check and one more reason we'll be watching say snap on earnings this week. spencer, talk to you >> thank you after the break, crypto exchange bakkt going public. ceo will join us next. bitcoin, meanwhile, above 61 close to 62. we're back in a moment it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪
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welcome back to "techcheck" i'm jon fortt with julia boorstin and carl quintanilla and deirdra bosa one that you don't see is facebook is up quite a bit baidu as well. moderna. we'll have more on how the biggest tech stocks are set up for the rest of the year. first, news update with
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frank holland. frank? >> here is what's happening at this hour. unexpected drop in u.s. industrial production during september lingering effects from hurricane ida helping to drive 1.3% decline capacity utilization for the entire industrial sector that also fell. home builders however, they're showing more confidence. this despite higher cost and entire supplies. the nehb index rising to 80 surge in buyer demand outweighing challenges on the supply side. investment management stay street continuing mostly strong earnings report from the financial sector helping to drive beats on the top and bottom line. state street shares trading higher this morning. and amazon says it wants to hire 150,000 seasonal workers for the holidays 50% more than last year. but still well below the hiring target in 2019 pay starts at 18 bucks an hour for the temp jobs. sign-on bonuses as much as $3,000 back over to you all right. thank you very much, frank.
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watching these indexes go back and forth nasdaq is outperforming today in the green and the broader market, we did get 4480 a moment ago. that's taking out friday's intraday high. mike santoli is watching that and taking a look at the rest of the year mike >> yeah, carl. big question where the huge cap stocks participated in the upside this year but not driven it will maybe close this gap or not if in fact higher treasury yields will be an excuse for cyclical stocks to lead which could hinder the overall s&p this is the last eight months in the s&p 500 versus the new york stock exchange faang plus index. this index is hampered by the fact that alibaba and baidu in there. you can probably look at this two ways and say there's now upside for them to mean revert higher but it's unclear at this point if that's going to be the way facebook is actually improving today but really come back to the pact it's one of those things i put in the category of we just don't
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know if, in fact, this going to be something that follows through because a lot of the work if you look at what the market's message has been that there might be a cyclical reacceleration, banks higher, industrials doing okay that does not necessarily work to the strengths of the s&p 500 which is predominantly a growth index, dee >> all right, mike, thank you for that. we're looking at crypto and bitcoin shoelding about 61k and looking ahead to the launch of a bitcoin etf. marketplace bakkt is going public they started as a crypto custodian for big investors but developed into a platform for bitcoin futures trading along with an app that users to spend everyday goods it is majority owned by intercontinental exchange owns the isis majority shareholder post bakkt joining us live is bakkt ceo gal vin michael. thank you for being with us today. before we get into your business, as i mentioned, it is a huge week for etfs and the
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crypto community, that first bitcoin etf begins trading debuts tomorrow. what does that mean for your business and the ecosystem at large? >> so i think it just legitimize the ecosystem in a broader sense. you know, we've been looking for ways for people to have exposure to the asset class without necessarily owning it. and etf will start to set that up for us, you know, we remain focussed on providing utility to these assets and people's everyday lives making it easier to sell, spend, buy, hold these assets and bring them to life in new and interesting experiences. >> right gavin, i was looking at the investor presentation and you guys are projecting that the app bakkt will amass more than 30 million users in five years. that is a big number it's ambitious, it puts you alongside the likes of much older finteches like square cash and paypal, venmo, robinhood where are you at now in terms of active users and do you still see yourselves
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getting there? >> so, when we look at the way in which we approach the market, we're very much a b to b to c company. we're a platform that allows people to be able to provide access to their digital assets in new and innovative ways so when we talk about how we acquire, we acquire through our partners and we've got some great partners out there choice hotels, we just recently launched them into our platform. windham hotels we have just done a terrific opportunity with finestra so, when we look at the way in which we approach the market, it's through this lens of b to b to c >> and gavin, how many users do you have currently >> we haven't disclosed yet. we have our first investor day coming up and start talking about the key performance indicators for the company. >> gavin, are there levels of volatility meaning a price at which it would soar to or
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collapse to that would make this model a little more brittle. >> not really because the volatility is really helpful for us because it's bringing people into our platform, into our ecosystem to engage with us. so, while we see the volatility in the broader environment, for us it's less about the day to day pricing and it's about how people are interacting with the assets >> you say the volatility is helpful for you guys as a platform but not necessarily when users are thinking about actually spending crypto currencies are you seeing more people spend using bitcoin, versus dodge coin or other crypto currencies what are they actually spending and are they doing significant way? >> we only list bitcoin as part platform we provide very easy entry point for customers into the crypto space. you know, it's not intimidating. we don't charge transaction fees, so it's an advantage place
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as well. so when we think about bringing people into our platform, we're really focussed on a great customer experience on making economically viable and providing way to engage that's nonthreatening. >> when you look ahead at what people welcome spending and have adam aaron accepting dodge coin, how are you working to get these other crypto currencies spent by users on to the platform. >> we're looking obviously at broader sets of tokens on the platform will always be several rather than several hundred when we think about it but it's not just the crypto side that we're focussed on. we support a range of assets you know, loyalty points, hotel points, rewards points as well as, you know, cash and gift cards. so when we think about the value proposition, it's about being able to see all of your holdings in one place our ability to be able to work with our partners to create surprise and delight moments so they can inject new brand love into the loyalty programs that they offer and really help them engage with
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customers in new ways. >> yeah, gavin, we look forward to your investor update and seeing some of those numbers and getting more updates on the progress of the business thank you so much. meanwhile, look at coin based shares higher by almost 5% up 25% in the last month and john, bitcoin nearing that 62k level as we speak. >> yep yes indeed as we head to break, check out shares of microsoft outperforming every faang stock this year aside from alphabet, google this morning, still top pick into healthy upside. this quarter it's about flat today. don't miss the halftime report today at noon. rlca a jing ten-year anniversary ca ihnndim chanos. we'll be right back. best price , which saved investors over $1.5 billion last year. that's decision tech.
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we mentioned the apple event today. the company that makes the advanced chips inside every iphone and most mac computers is taiwan semi, making major strides to ramp up production in the united states. cnbc digital reporter katie shoe love got an exclusive look at taiwan semis new plant under construction outside phoenix >> the total space for this around 2.3 million square foot >> reporter: the u.s. was the birthplace for advance silicon 75% of chip production happens now in ie sha.
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tsmc is now bringing the world's most advanced chip making back to the u.s. with a $12 billion fabrication plant or fab the middle of arizona desert. >> it's going to be when it's introduced to production in 2024, the most advanced technology manufacturer in the united states. >> reporter: building a fab today takes at least two years and $10 billion. it's become nearly impossible for even the biggest chip companies intel and broadcom-amd to do it all and keep up with the most advanced tech >> that full piece in-depth more than 15 minutes is on and dee, tsmc is the pace setter you've got intel, trying to ramp up this foundry strategy under pat gellsinger hear from him on "techcheck." you have to chase down tmsc to do it. they have great technology that lot of people are using. >> and lot of experience and sam
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sunk the major players are asian players and we talked about this a lot, guys. as a national security issue we want more american companies to be manufacturing chips as jon said, carl, intel is trying to do that. but they don't have the kind of experience these days that tsmc does lots of questions as to whether he can execute that strategy >> yeah. that's a great piece in the a.p. today, guys with the commerce secretary. it's a national security problem that we don't make any leading edge semis in america, that we don't make enough solar panels in america that we don't make batteries in america it's hard to imagine that this ramp up in production will get any friction from regulators. >> yeah. it's not it's easy to imagine that it will go through. it's also easy to imagine that eventually there will be some sort of a supply perhaps oversupply issue because there's also this pressure on globalization. ideally when you're making stuff
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in any one place you want to be able to sell it everywhere so as barriers come down to trade, carl, you sort of want to see despite the geopolitical tensions and the disagreement over how economies and societies should run, you want to see trade perhaps being a bridge in that situation, though, in this case, perhaps not enough bridges in the world >> yeah. and dee, it's not like we're just trying to fill the existing gap and demand we're in an era as lisa su told jon code, chips will going into increasing number of products. >> think about who are the ones that want to manufacture it? yes, at the southeast asian countries but also china that's trying to ramp up their chip making capacity. so you get into all kinds of that national security debate. meanwhile, guys, just take a look at another stock. citi is reiterating tesla a
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sell they raise 2021, '23 estimates price target still at 209. we have more "techcheck" right after this 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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there is another facebook whistleblower testifying today this time in the uk. that's getting under way actually got under way minutes ago. julia joins us with more on the company's response on this
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julia? >> well, jon, british lawmakers are right now hearing from yet another facebook whistleblower, a former data scientist, sophie zang is her name she was fired from the company after multiple attempts by foreign national governments to abuse the platform and mislead those people's country she is speaking to the committee on the draft online proposed legislation that threatens fines to tech companies if they fail to take action against harmful content. this all comes, of course, on the heels of another "wall street journal" expose saying internal documents reveal that facebook's own engineers doubt the company's ability to use artificial intelligence to crackdown on hate speech facebook hitting back, vp of integrity guy rosen writing in a blogpost the narrative is wrong that hate speech the .05% of content viewed down almost 50% in the last three quarters so, now we'll have to see if
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congress calls on sophie zang. she said she is willing to testify and that she has passed documentation about the company to a u.s. law enforcement agency guys >> julia, in terms of that facebook response, you know, they have this thing called proactive detection rate and that's how much their a.i. systems are taking down hate speech they say that it had reached 98% as of earlier this year but not a lot of information as to how they got that number do you know anything about it? and do you think that with the continued scrutiny there's going to be more pressure they'll ever release, give us more transparency as to how they get to these figures >> i think the answer is yes, there will definitely be more scrutiny we're seeing it from congress. there was just word that a bill is coming, yet another bill to reform section 230 and there are various attempts at it, various questions of what's the best way to reform section 230 to hold facebook accountable and i think there is going to be a lot more pressure on trans parentsy and i think facebook is
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trying to offer more information, figuring if all this info is out there already through the leaked documents they might as well counterback with their own context and information there. but i think the question of how they identify offensive content is something that they've been reckoning with for a while because it's a combination of algorithms and also individuals. these human content moderators and what they're doing is they're giving the number of saying this is the amount of content we have pulled down that people have tried to post or people have tried to share, but we have prevented from actually being shared on the platform >> and then julia, in another weird collision you have speaking of europe, the company saying they plan to create 10,000 jobs in the eu over five years to help build metta verse. i wonder what all these hearings and whistleblowers are doing to normally signsof growth? >> well, yes i think the metta verse is where the big bet is here. perhaps a less controversial world for facebook to be moving
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into, although who knows what lies ahead but i think that, yes, this is facebook saying they want to invest in this metta verse technology and perhaps investing in those jobs in jobs in europed that be a way to maybe get the european governments to lay off of them a little bit probably not but at least shows they're trying to spread out where they're investing right now. >> yeah. we are watching shares back to 333 today. jb, thank you. it's been a rough week for virgin galactic shareholders following the drop on friday on the news of another flight delay. ubs cut to sell. price goes down to 15. 24% of shares exiting a lock up in a month says they could see more selng t weeks ahead dow's down 23. we're back in two. but then the walls went up and choice became limited. until now. now we're in a new digital landscape
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of emerging channels, data-driven campaigns and measurable outcomes. welcome to now - the new open web. powered by people-based software from viant - a new standard in media. the upgrade marketers deserve. viant. built for now. ♪♪
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zblncht welcome back claude cloudfare is trading at a new high it's currently at nearly 175 month to date, it is up more than 450%. now compare that to some of its peers like crowdstrike both are still outperforming tech more broadly, but not
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really as you can see, holding a candle to cloudflare during that period it is first on the etf cibr that's up more than 130% year-to-date, jon. >> wow okay if you missed part of the show and say you got a cable box that's 15 years old, don't beat yourself up. you can follow and subscribe to our podcast. tech check back in a moment. feel stuck with your finances? ♪ ♪ move your money to sofi. earn up to $930 when you download the app and feel what it's like to get your money right. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships
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committee asking amazon ceo to hand over evidence to back up testimony over the past two years. amazon has said it doesn't use third party seller data to boost its own products the reports in the mark up and reuters last week claiming the opposite we spoke with the mark up's editor and chief on friday
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>> we scraped thousands of search results on amazon and found there is no question that being an amazon brand is the most important factor in getting to the top ranking on amazon we use machine learning to do this with a statistical analysis and results were clear >> amazon says no, denying these accusations. telling the wall street the company has an internal policy preventing this. >> it's getting interesting. i wonder what you make of that, and you know, in an era in which we have heard the company get a little more vocal and things like jedi, how they respond to something like this. >> i think it gets really difficult when you look at what the mark up did in searching through so many different brand names and so many different incidents to say this isn't systemic so i wonder what amazon's response is going to be. in the past, it seemed to be well maybe individuals didn't
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follow the policy, but this seems so widespread and more than a coincidence i'm glad they're looking into it >> if you shop on amazon, you know the number of private label products that they have has just been expanding it's also a reason the scrutiny and some anxiety about using third party seller data is why a company like shopify is a $177 billion market cap company it gives merchants another consumer and avoid any kind of that worry or anxiety that amazon, which does a lot of things very, very well, could come and eat your lunch. >> yeah. just to take a second here, dee, we missed you so much. we're glad you back. especially since we're at the cusp of where earnings start to crush, but we hope you had a great time off >> i did and i'm back just in time for the big earnings week i'll be looking at alphabet and
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amazon, but i will have my hands full >> tomorrow, jnj, proctor, halliburton. that's just tomorrow before the week getting even busier big week for the half as they celebrate ten years. let's get to the judge welcome to the halftime report front and center this hour, the huge weeks for stock and whether one top market watcher is about to capitulation on his call. we'll debate with our investment company. joining me today, shannon, steve, pete, cofounder of we are also marking the halftime report at ten and all this week, we'll be joined by some of the biggest investors in the world including carl icon and ji


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