tv Tech Check CNBC October 20, 2021 11:00am-12:01pm EDT
there is a lot of puns >> wow that's good. >> a lot of puns we could go with here. that being said, major averages are higher today the s&p now on pace for the best month since november both the dow and s&p traded above record closes. that will do it for us "techcheck" starts now. good wednesday morning welcome to "techcheck. today a red light or a green light for investors. we'll debate netflix's results and status as a volume shooter then facebook changing its name. some of the best ideas that don't include the word the the creator of the iphone and ipod who is actually winning right now in hardware.
>> we're always keeping our eye on stocks this morning major indexes back to major highs tech is lagging. nasdaq on pace for its sixth straight day of gains. the s&p, meanwhile, on track for its largest monthly gain since last november. more on tech's biggest movers including, of course, you can't get away from netflix, john. >> that's where we'll start. the netflix feed julian boorstin has more on that sub growth number. julia. >> well, john, third-quarter subscriber growth 4.4 million beat the company's guidance by nearly a million and 8.5 million new subscribers right in line with expectations. the stock popped and gave up gains as investors invest in weakness only 70,000 new subscribers and in latin america user growth slowed showing signs of saturation in those two key
markets. fourth quarter earnings guidance did fall short of expectations 80 cents per share rather than $1.10 that they anticipated. wearing a "squid game" track suit during the video call he focused on premium content coming to the platform and more opportunities to make money from netflix franchises >> imagine three years from now and, you know, some future squid games is launching ask it comes along with an incredible array of interaffect or gaming options and all built into the service and then, of course, you've got your off netflix aspect and the experiences we're building out, consumer products. all of that coming together. so, you know, a company like disney still ahead of us and those dimensions putting that whole experience together. but, boy, are we making progress >> we count at least 22 analysts
who raise their price targets on the stock, although there was one notable netflix downgrade. deutche bank downgrading from buy to hold. $40 less than where it is trading now. the analysts saying the subscriber gains are already priced into the stock and revenue growth is decelerating a number of analysts did point out that netflix has made a move about viewership and praising that change and compare netflix with other services. >> getting pretty comfortable in that track suit, the "squid game" one and wearing it in korea, i think so much was made about this hit on the call. it was mentioned 18 times and came out at the end of the quarter, but did it really save the day here how can they continue this kind of success especially when we don't have a second series green light yet? >> well, look, i think here's the thing. "squid game" only did come out
the last couple weeks of the quarter so the full effect won't be felt until the fourth quarter. there's that there is also the question, deidre, what does it represent a show produced not for a lot of money and not as expensive as the u.s.-based shows and came from the south korean market where people don't traditionally watch outside south korea until recently netflix talked about the huge increase in global viewership that they've seen in the past several years and this is a real business advantage for them. if they can get more people around the world to watch local language content, that's a win that means they're not going to be a u.s.-based company exporting contenting around the world and that is something that they talked about on the call and that is a valuable shift for them >> one of many things i don't get, julia i look at "squid gauge" and then "bridgerton" and chappelle with disney you have these categories of modern mythology
that they managed to acquire and then own and extend. with netflix, the categories seem less defined and therefore perhaps more difficult to build out. were there any questions about that on the call >> well, look, there's no doubt, john, that netflix is just a much broader service and disney is much more focused netflix has more content than disney plus and premium branded franchise than netflix has i would say what netflix is trying to do is replace all of television every channel on your dial to put it in the old tv terms with the exception of news and sports it wants to have documentaries and wants to have kids content and also have some of these more edgy things and a lot more to where hulu fits in and the whole bundle of disney plus, hulu and espn plus than it is trying to compete with disney directly yes, they're not playing the same game as disney. they'll never have the same big
franchises but they want to have some franchises. not about princesses and super hero, but they want to have recognizable brands that they can count on to drive viewership >> that's a good way to put it, julia. hang out for a minute, bring in michael nathanson. talk more about the quarter. great to have you. thanks for the time today. >> thanks for having me. >> you guys have written so eloquently about their model and their global scale and their willingness to take as many shots at the goal as they can but also argued, look, not as deep as amazon delivery or google search. you were unwilling, you say, to pay for what the street says is a proper valulation. what would change your mind? >> i think what would change my mind is less competition that is coming in streaming. right. you're just beginning to see disney scale, hbo max scale and apple get in the game and amazon this is a business that is very capital intensive. to your questioning of julia,
it's a broad service you need a ton of content because you never know what is going to strike. it's a bit of a random walk. so, i think of the intensity of competition would lessen, i get more comfortable about their need to spend. but as she said and your questions are great. they're playing a different game it's a very expensive game relative to, you know, what media used to do basically >> does that mean if they've sourced more shows out of low-cost areas as "squid game" is such a great example, that would lead you to less pressure on the content budget? >> yeah, if all of a sudden we see a "squid game" happen every month, every quarter, right. they're able to find other cheaper ways to bring us hits, that would then prove perhaps the spending will slow and they're able to sustain all the subs they added and all the pricing they want to take. that's the great test going
forward as others also ramp up around the world and try to do the same thing >> michael, if the next revenue stream is, in fact, gaming, did you like what you heard? we heard very little on the call last night they said, yeah, they begun testing in some countries, but it's still early days and part of the prescription no ads or in-app purchases what did you make of it? are you even optimistic they can pull this off? >> it's early days as you said i have learned over my career to never count out netflix. they're great at execution they're great at moving towards a single goal. if they put their mind to it, they can do it but at this point, it's a free service attached to their content. i thought the point of that we made about china did with disney "squid game" watch it in a night and now over for a lot of people different than what disney has built these recurring franchises and they have the parks and
consumer products. that to me is a bigger challenge. but computer games or mobile games, why not but at this point, we don't model it andsounds like it's still really early days. >> michael, so much of netflix streaming rise has been during this time of a bull market and relatively cheap capital and you mentioned they have to spend a lot to keep this going i mixed that in with seeing that netflix and engagement spike like 14% when facebook was down and think about how they're competing in the attention economy by spending. what happens if inflation stays high, interest rates rise. it's not as easy or free to spend in the general economy what does that do to netflix >> yeah, it's funny. i'll take it further i think the era we're in where there is free capital, low-discount rates gives companies like netflix, i think you heard reid say a bunch of
times just imagine how big we're going to be. you can go out five to ten years and to julia's announcement that people raise their price targets when it was in-line quarter and in-line guide. people would go out a long way higher rates and inflation probably won't change spending here because this is a good value. i wonder what the stock market would do to a company that has a lot of support today or even tomorrow on valuation. that's been my, you know, one of my rubs is, you know, i've been an analyst a long time ten-year money doesn't come at 1.5% forever and the rate starts to rise and the ability to use discounted cash flow to back into that valuation gets harder. that's like your question is dead on. and i think in the next six to nine months and you come back and ask that question again and start asking analysts why did you raise the price targets 50 bucks which is $20 billion on no change in fundamentals, right? i think it's a really strange
time and not sustainable >> although others might argue, michael, they use the era of cheap capital to the fullest they may come out where the window is open and i guess at this point it is a good time to be free cash flow positive after all this raising capital >> yeah, they were, you know, what i never could understand is why didn't their competitors move as quickly, right why did they sell timewarner and combine cbs quickly. terrible decisions and have a run before they challenge them now, it could be too late in terms of trying to catch up right here >> right so, michael, if it is sort of too late in there, we always talk about this how maybe there is going to be two or three or just a few streaming services that people are going to want to pay for. you mentioned disney earlier who is that? >> oh, it's clearly the disney
suite, netflix, amazon discovery and the hbo merger is going to be inest interesting be that could be a strong player and hampered by their balance sheet. after that put apple in the mix. you need global scales you guys have been talking about all day. you need global scale and deep pockets and come in with a lot of content and i think that's the challenge people start realizing one or two years it's time to get out or consolidate that would make me a lot more positive on the entire space because it means less competition and less capital being spent. >> we're lucky to have you kick off the hour great to see you, as always. thanks >> thanks so much. very kind. before we go to break, we have to talk facebook. a name change may becoming and distancing itself from a name that is not exactly hot right now. outside of the public discourse and privacy on fake news and
whistleblowers, the stock is down more than double digits since september. major faang underperformance much cheaper than some of those faang names like i said. peers like alphabet and apple. the name change, the obvious comparison is to google which became alphabet in 2015 but thanks to marc beneoff the more appropriate one, julia, may be philip morris. i know a lot of memes and jokes floating around twitter what this name could be the obvious question, who thinks this will work we're talking about google and alphabet and alphabet parent and it's just confusing for us reporters. >> right i hear you, deidre i think what is so interesting here is what is the message facebook is trying to send with this name. yes, of course, they're trying to distract from the headlines
is that going to help them avoid regulatory scrutiny? no will it help with consumers? we'll see. there already are a lot of people that don't understand that instagram is not part of facebook then, of course, this question of what this new vision for facebook is going to be. they talk about being a metaverse company and this announcement is expected at this facebook connect event that is scheduled for next week. the website for this event makes it look like this sort of psychedelic thing. it doesn't look at all facebook oriented all about ar and vr. pretty cool website if you want to check it out. i think that facebook is trying to redefine what it is about and tell investors and consumers that these nasty social media headlines are just a tiny part of who they are and who they want to become >> julia, i know what they should call it they should call it wakeboard. that's better. wakeboard. right. that could work. >> sweet baby ray's.
that's another one floating. >> facebook said they do not comment on rumors and speculation. there was no official comment. but based on everything i've heard about this the company's plan to expand beyond social media. they keep on saying they're not a social media company i think it really makes sense for them to make this announcement and make it now in the midst of the firestorm over the problem that is facebook all of a sudden they get to become a different company >> that's one of the reasons they suggested the name could be something like horizon or something tied to ar and vr. we'll have to wait and see if and when it happens. julia, thanks. in the meantime, who is winning the hardware game in tech the adventure of the iphone and ipad will weigh in when we come back we're just getting started
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4% bitcoin hitting record highs up and more than 4% today above that 66k level other cryptoes don't ignore them also in the green today. either hitting its highest level since early september and crycr crypto-related stocks and the first time since its ipo in april. john, we know that those two, coinbase and bitcoin track pretty closely >> yeah, yeah. definitely coin-base reliant on that move. let's talk some hardware and been a big push into it this fall apple announced new laptop with custom chips, airpods and phones, ipads, watches and google showed off the latest pixel phones yesterday that have their tenser system on a chip inside and samsung's debuting its new devices this morning and tablets from facebook and microsoft. smart tv from amazon and comcast and which have the hardware
edge joining us now tony fidel who is the big part and productmaker nest and he now invests in new products at his vc firm future shape. great to see you it's been a while. >> hey, john, great to see you, too. >> when i see this latest chip action out of apple, i think back to 2008 apple buying pa and even before that steve jobs and phil schiller on stage trying to argue why the power pc combined with apple software was better than wintell it was a tough argument then, but not now. are we finally seeing the fulfillment and vision of steve jobs >> absolutely. back in 2008 with pa semi it was all about the iphone and the ipad and now it's finally come to full fruition with the max the new max, as well as the m1 and the m1 pros are a phenomenal
product. i ordered them within minutes after the launch because it is definitely dramatically different than anythingen on te market >> there are chip companies trying to make their money trying to make the best chips whether it's intel pat saying we'll get apple back and qualcomm which has managed to stay in there with its 5g chips in phones thus far but apple is trying to work them out and lisa sue saying that heterogeniusing is the future. what are the chances that apple actually reverses course from here if one of these other companies can claim to have a better product >> i think it's very, very hard to see unless apple stumbles in some way with their chip program which it's hard to see i don't think they'll go back to buying, you know, soc, system on chips, from anyone else. the reason being is not technical. the reason being is margin
there is so much margin to be gained when you're looking at 60 points margin and 80 points margin that intel can make on a chip when you actually take that away and put it back into the product or reduce product prices, there is going to be a huge disincentive to ever switch away from that model as well as one of these companies doesn't come up with 10x better technology at truly the transistor i don't see the domino has fallen and not getting back up any time soon unless there is a technical change >> tony, i want to talk to you about design which, of course, jo jo johnny ive made unique over the years. his bloomberg piece that argues perhaps apple is better off and you take the new macbook pro and has all the things that don't make it more beautiful but more practical. what do you think maybe an unpopular opinion, but certainly
creative professionals very pleased with what they saw earlier this week. >> it's a great question you have to look at the type ofe looking at professionals using these things every day and have to have convenience, you have to look at the products in that light. you're see a bifurcation in the line for certain types of customers and you need to make sure you optimize for each one before it was kind of in the middle strategy. now you can really feel it bifurcating and that feels right and i think if you look at all the reviews, it's all coming back as a very, very positive for apple and the customers, as well, are signing up you know, buying quickly >> it feels right for a lot of folks right now. but what about the long term, tony apple is famous for knowing what consumers want before they know what they want can this almost be seen as a
compromise or throwing in the towel too early? >> no, i don't think that's that apple is, look, 20 years ago apple is a very different company than it is today and serves a lot of different types of customers they're just trying to go and target each of those types of customers with the right products before when you only had a certain amount of volume you had to put everybody in one bucket all the volume is growing tremendously with the different types of products. that's why you have this bifurcation. i don't think that's a problem you're seeing it in the ipads and iphones, that will just continue given the market dominance of apple >> hey, tony, in the auto business lately we saw the chip shortage force producers to say back off on bells and whistles maybe you don't get that extra fuel gauge because they couldn't get that particular chip would that ever happen at apple if the supply chain crunch continued. would they hold back on some innovation rather than put out a product that wasn't their ideal?
>> i don't think even if it's not ideal, i don't think they would do that. strip out features at all. i've seen the supply contracts and i've been able tosee them from both sides from a supplier side and a buyer side. and their contracts are so strong that it's hard for me to see, you know, that's why apple is not suffering as much as other people because they know how to do silicon supply contracts better than anyone in the world and i don't think you're going to see that >> i want your take on this overall love affair that is happening with hardware right now. 15 years ago content and hardware in tech were things you avoided like the plague. if that wasn't your core competency, don't do it because you're going to lose a bunch of money. it's not worth it. now comcast is getting in and google has the pixels. does this last or is it for those who don't have a history of making these things work well >> well, look, if you don't
start in hardware, it's a very, very different discipline to create these kinds of products and to be able to have year after year innovation on the hardware side. and the discipline to come out with that. and understand the cost differences because, remember, the cost and the margins are very, very different in hardware versus services or software company which is much more used to much higher margins so, it's a very, very different way of thinking. but that said, assuming that they can embrace that and these other companies can't, this is a synergistic cycle. hardware, software, services that go back to hardware and it spins around this circle remember, there was ipod, ipad, itunes music store you innovate the hardware and then the software. exactly the type of model that you're going to see from all these other competitors because they're understanding what it means to have, to, you know, customer acquisition and lock in in a lot of ways
they're trying to replicate the model that is apple. >> tony, great to see you. let's do it again soon >> thanks, john. >> great having you on "techcheck." >> that was fantastic. coming up after the break, what is ahead for tesla as they report q3 results tonight. the downgrade and neither feeling the impact, though, as we're at a pretty good take today. we'll hearom se of that when "techcheck" comes back in a moment only from fidelity. there is something i want to ask you. oh um... the new iphone 13pro is here, with the most advanced iphone camera ever. and i got it at t-mobile. whew, i thought you were going to talk about... 'forever'. this is a value that lasts forever. because when you get the new iphone at t-mobile, trade-in value is 'locked in'.
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at at you see the reaction right there. john, it would be remarkable not a lot of news surrounding pins in the last few days other than one of their board members and original creators moving to johnny ive >> it doesn't make any strategic sense. sure you could buy it. but why would you? pinterest is not fintech maybe somebody switched a letter in there >> we talk about social commerce and this is the biggest indication that this is the next leg of ecommerce that is social. we've seen the tie ups between fintechs and sort of social networks you see it with facebook and twitter and crypto the price is interesting
loser down 3% and frustration among investors that it hasn't actually been able to translate that commerce side of things got people to actually pay for things on pinterest at a higher rate a tie up with paypal is useful pinterest has 350 million active users and paypal 286 million on its platform and then you've also got the venmo complex which has been very popular with the younger generation and you tie those two together could look very interesting, carl >> indeed. julia, i know you're just getting seeated reaction to this idea, i guess conceptionally first >> conceptionally i think for pinterest it could make some sense if the company is calling me back. i reached out to the company, no comment back yet my understanding is that
pinterest is lagging its social media peers and engaged user base and hasn't monetized that user base and a lot of potential around commerce. pinterest is all people that either want to buy things or plan things where they're going to have to buy things down the road and this company that is just starting to figure out how to make money from that and that eventually huge opportunity in getting people to buy things more instantaneously on the platform i would say for pinterest makes more sense than paypal >> someone is willing to pay more for your stock than it's trading right now by some kind of premium kind of in a way would make sense and would snap make more sense and a lot of other companies that one could argue that could make more sense than this now granted with the current anti-trust environment, arguably, if it makes sense, it's going to get blocked. so maybe this is kind of the current environment and the encouraging acquisitions that
don't make sense because those are the ones that can get done >> right with paypal being such a larger company its market cap is at $310 billion today, right. it has become bigger than some of the country's biggest banks you would see how this would shake out leadership wise and when you talk about snap and would evan segel be acquired and ben silverman could carve out an important space within paypal and dan could continue leading all the fintech efforts. >> look, dan shillman has a remarkable track record here and what is so interesting is one reason we're having this conversation is because we've talked so much about the creator economy. so much about social commerce. pinterest is a company that should be all about social commerce and right now in the early stages of that if partnering with paypal or doing something in that nature if it is not a full-out
acquisition would be so powerful for a company that has visual surge and the ability to tag products and so much consumer intent and i think what we've seen is that they're just expanding their purview into so many different areas whether it's bitcoin or something like this in social commerce. >> and partnerships. we see spotify and shopify kind of hooking up with a partnership today where artists can sell their gear through spotify using shopify and, you know, we're always mixing up their names on air anyway because they both start with and fi at the end they're together in this deal. that's helpful but partnership makes sense. acquisition. there's this temptation i think when there's a rumored acquisition or tempted acquisition, oh, yeah, i could see how this works i look forward to the explanation. but this doesn't make any sense to me. >> we're seeing so many of the partnerships and why would paypal feel like it would go very large step further with an
aqctual acusition. perhaps this is the single if this really does turn out to be true that paypal wants to go a lot deeper in social commerce. >> we did get an initial halt. i think it reopened and now another halt that's why you're not seeing shares move. julia, it's interesting. john mentions the shopify, spotify and yesterday about snap and pixel. there's been interesting partnerships developing over the last 72 hours and definitely, any kind of deal would definitely challenge our assumptions about ecommerce which is in an era where covid is less of an era for shoppers that physical retail would once again push ecommerce growth down a bit but maybe that is something that paypal is trying to game out. >> look, i think whether or not this would make sense for paypal is a bigger question than whether it would make sense for pinterest which is a company that is about that social
commerce but i do think in terms of what is going to happen with ecommerce when the pandemic wanes or continues to wane, i think there is a sense that the pandemic has really accelerated adoption of ecommerce and also social commerce and the creator of the economy of the sense that anyone is buying or selling anything from any space that they're in i think that even, you know, this is something that i hear a lot about when i talk to people about facebook, as well as even twitter. the idea that more commerce is shifting into those spaces so, i don't think that the return to a sort of post-pandemic world is going to mean that we return to those post-pandemic retail trends. i think there is a sense that ecommerce and social commerce is here to stay >> take a look at paypal shares. they dropped on the news still down 3%. could be a tough one to sell to investors. paypal has been firing on all cylinders, especially throughout the pandemic when we see the shift towards digital payments why not focus on that and also
raises antitrust concerns. biggest than some of the biggest banks and regulators set up and say, hold on a second, is it getting too big. this is $310 billion company >> as well as what the reaction would be from rivals like square and others in the payment space. we'll continue to watch that story. i'm sorry, are we going to santolli here? mike, are you there? >> yeah, i am. >> i'm getting a cue you might have something to add. >> it wasn't intended as a direct transition into the paypal story with pinterest but companies that try to buy content and push it across their networks we're talking about telecom verizon and at&t did that. they acquired content to try to monetize the big networks and not saying this is paralleled necessarily to paypal and pinterest. we're in a different situation
with these companies today the pure telecom stocks after verizon's results and mostly it's been a real pile on with all these stocks analysts downgrading and people being concerned we're in a build out phase in terms of networks and subscriber growth and not feeling as if they're in a great position also dragged to some degree and comcast and also you have adam jonas of morgan stanley how it will take over a lot of this type of business you see they're super cheap. t-mobile, at&t and verizon traveling in sync with each other on a year-to-date basis. very chief and compared to the overall sector communication services which is also mostly held aloft by alphabet and facebook >> all right, mike, thank you. >> not to mention netflix. >> on the day after their earnings report. now, later the halftime
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possible takeover. we'll watch that specifically and see how it trades around these levels after a couple of halts. d. >> paypal a little lower on that news as investors don't like to move but let's hit another stock. tesla reports earnings michael burry said he's no longer trading against the company. have a listen to what jim said this week about his long-time short. >> we still have our slightly more than 1% position. so, yeah we're still batting our heads against the brick walls. >> you don't have a headache yet? >> trust me, i have a headache yeah 100, almost 120 times next year's estimate, we still think this is a car company. we know you heard that ad nauseam. we think that is absolutely silly and being valued at more than the entire rest of the
global automobile industry combined i think just highlights the risk >> maybe more of a concussion at this point we're going to chat more and joining us barrett analyst ben thank you for being with us today. the bar has been raised and tesla trading a few dollars of its all-time high. what does it have to pull off tonight? >> i think as you said, expectations are very high i think the key points, though, you have berlin coming on and austin coming on and i think that, you know, they have been operating out of fremont at a factory. i think as we see these new factories come on we'll see the profitability there and start seeing numbers go up you still have half the street as a hold or sell on it on the company. so, even though the stocks are hitting all-time highs, seven is still not as great as some things out there right now and i do think it is a core
holding for mobility and energy. >> one of the biggest questions going into tonight's earning and earning call is whether elon musk is going to be running it or making an appearance. do you think he will and how important for investors, especially retail investors to hear from him. >> i think it's very important and the last call and several people have asked me if he's going to be on the call. i think that, you know, he'll make an appearance every now and then and i don't know tonight it's always a wildcard with every tesla call and there's always a wildcard out there. i think with everything going on he's got his hands full there and with tesla operating as efficiently as it is right now he's not going to do mundane things like this quarterly calls. >> yeah, quarterly calls can seem very mundane compared to going to space that's true, ben what are you expecting of
anything anything regarding full self-driving feature that could add or take away from the valuation and the idea of this being a subscription model software and after jim chanos calls it still a car company >> i think that's an important point there. and you just run out how much they're spending and you start seeing things like they did in their ai day like they're going to have an ai robot building cars but that's why it's not just a car company. full self driving continues, i think, go higher and we'll start seeing that in margin going forward. i think that is another leg to the profitability of the company. and one of the big things, we just rewind maybe two years ago and we were talking about the going concern or people were talking about that and now i think they're going to end the
quarter with $17 billion, you know, after deploying probably $1.5 billion so they're just running at a faster pace. >> well, we'll be watching tonight especially to see if musk jumps on that call and takes a break from space ben, thanks so much for being with us. we'll talk to you again soon >> thanks so much. meanwhile, keeping our eye on the new bitcoin futures etf also keeping an eye on bitcoin itself which is hitting another all-time high today. up near 67,000 "techcheck" is back in a moment.
so they can deliver a great experience from anywhere. ♪ (whistle) ♪ >> we've anyone hitting current rally in chinese stocks. alibaba for example up 28% since october 4th so leaving many to asked has the china crackdown peaked while one sign could be jack ma's vacation schedule he traveled to spain to see friends and business partners for a sailing vacation meanwhile, the china morning post which reports that he was
in spain for a study tour related to climate issues. the journal reports he's even tasting wine, this is the first time the face of that chinese tech giant has left the country since antitrust scrutiny began and investors have really seemed to be taking it as a sign that these companies could be through the worst of the government's crackdown, but john in china, we never really know, but that's the issue here tasting wine could be a good sign. >> but is someone tasting the wines before he tastes them. >> is he putting baijo in the wine it's like a chinese liquor i wouldn't recommend it. >> of course, we wish him the best and after this break we'll come back to the headline which crossed 15 minutes ago that paypal has been in talks to acquire pinterest. the stocmongn atk vi oth more on that in a moment i feel like they might have a better finance system than we do. workday. how do they make better decisions faster?
this morning adobe releasing its closely watched online shopping forecast for the 2021 holiday season that report looks at visits and activity on a broad swath of e-commerce sites predicts here in the u.s. holiday online sales will hit a record $207 billion and that represents some 10% growth, but it's the slowest growth in eight years. supply chain stock is part of the issue there. the report has buy now, pay later and curbside pickup growth
i spent time with adobe's executive vice president who broke down some of these numbers. >> as you said, it's continuing to deliver $207 billion up 10% year over year of course, we had a more dramatic increase when everything went digital because of the pandemic. globally, we'll see 11% growth year after year and what we're seeing is consumers starting to buy items like groceries online and the more regularly, obviously, that's now spread and become mainstream with big-ticket items, as well. the other big trend we'll see is that the major shopping days are starting to lose their prominence cyber monday was huge, and it will continue to be the biggest day, and we are now seeing that spread out across the holiday season and 30% right before christmas, carl >> john, let's get back to the pinterest story that you mentioned a moment ago
bloomberg reporting paypal has been in talks with the company about a potential acquisition although they point out no deal is assured julia, what more do we know at this point >> from pinterest, so the company weighing in there, but i just want to look at the performance of pinterest and the other social stocks ahead of earnings we hear from snap tomorrow after the bell and then we get twitter and facebook next week and we don't know when pinterest is reporting it they haven't said their third-quarter earnings dates and it is interesting to look at how pinterest has underperformed year to date compared to the social stocks and they're such a beneficiary of the pandemic especially in those first couple of quarters, and people staying at home using pinterest all of the time and there was a real concern that they were not going to be able to hold on to that growth or continue that growth because it was more of a pandemic-specific behavior rather than having the pandemic accelerate broader trends and it will be fascinating to see what the numbers are this quarter and
if pinterest is struggling to hold on to those users or monetize in a way that paypal could help them do >> that's one question for rohit. is there a sense that pinterest is doing this under some kind of operational duress >> i think pinterest is just early, and i think they're trying to figure out how to monetize their users they're a couple of years behind snap it was something like a lightning in a bottle. i feel that they just need to improve operations to do better and it is timely in paypal, in my opinion and they've seen payments, commerce, and social on collapse. facebook is looking ahead over three years and amazon has e-commerce and social innovation and without ebay, paypal has been looking to integrate with e-commerce for a very long time, and i see pinterest as an asset.
i say this, and pinterest is almost like a love child of the three internet mega snaps. amazon, facebook and google. so very unique assets. >> i mean, you can look at the longer term chart, and you see why this could make sense for the company if it's not monetizing users at the rate that investors might like to see you do so, butpaypal, explain this to me how do you acquire a social media network at a time when facebook is trying to rebrand itself why does it make sense that investors would like this move, ultimately could like this move and the stocks are down 30% on the report >> i think that would require some level of story telling from paypal and pinterest together, but i thinkif you look at what's happening with the payments of companies, scripps, strive, everyone is trying to be
an e-commerce marketplace not too long ago and remember ebay, and i think paypal realizes that if they have a step ahead of the companies like square and maybe strike like the big kahuna and this makes enough sense looking at three or four years >> rohit, thank you. >> julia, normally in this conversation when the stocks are moving this much particularly pinterest, we expect to hear something from the company, right? . >> i'm sorry, you think we'll hear something from the company? the earns will be out in a couple of weeks and we don't know exactly when and the question is sure to rise from analyst and the question for this season is how important is social commerce. facebook may be talking about near-term, they're trying to conduct commerce on the platform >> meanwhile, guys, the earnings parade will continue to roll on. we will get tesla tonight, as we
told you ibm will be the story and csx, las vegas sands and ppg which was one of the original companies so far this quarter to have warned about input costs which continues to be a very strong dynamic as we evaluate earnings season. it is time for the ongoing tenth anniversary of the half. let's get to the judge ♪ ♪ carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center this hour, the rally in stocks and the s&p closing in on that new record high we'll debate the markets today with two very special guests, nelson peltz and greenlight's david einhorn both joining us exclusively today and the investment committee and jim cramer will join me in just a bit and first let's check stocks and they're in the midst of a five-day winning streak, 36, 95, we are above that. the dow above it as well 35,619 take a look at the ten-yea
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