tv Tech Check CNBC October 29, 2021 11:00am-12:00pm EDT
providers rely on household formation to sell their services that is pressuring those shares. as we've seen during the course of this week, as well. of course after our parent company reported earnings concern about broadband subscriber addition. that will do it for us on "squawk on the street. have a great weekend, everybody. "techcheck" starts right now. good friday morning, everyone i'm deidre bosa and carl is up in ic and john is at cnbc headquarters today apple and amazon stocks drop after rare misses supply constraints catching up to two of the biggest names in tech plus, a couple of other sharp movers in tech as we wrap up an october rally.
lucid, zendesk and drop the facebook will the move to meta be enough for world peace, carl? >> we'll start with apple and amazon this morning. of course, both stocks lower amazon with its first earnings miss since the beginning of the pandemic and apple earnings in line first time it hasn't beat since 2016 and, of course, sales did miss supply chain was the main drag on both. manufacturing disruptions impacted sales by $6 billion but the demand, they say, is still there. amazon a 20% plus drop in growth says the company will take on several billion dollars of extra costs in q4 due to labor shortages and supply chain constraints. you can see the pressure on both names taking out more than $1 billion on market cap between them, john but the bullish rate at least on amazon today will come from the likes of morgan stanley and they're pulling out all the stops they argue to make holiday work and that sense of reliability, they think, will have implications not just on
competitors for holiday, but how consumers view amazon in the quarters that come after that. >> it makes perspect sense to me, carl amazon can afford to pull out all the stops. also apple, i guess the bullish case there is demand is really high so, when you look across amazon and the cloud performance, which was strong and that is the main growth business that you focus on focus on third party and their logistics are they able even if they have to spend to keep that moving it appears they are and then apple, same thing. the demand for the iphone 13 is high across product lines and that demand appears to be strong there are supply constraints we know this about the global economy. the fundamental thesis seems to be strong. >> the demand is there it's been about the supply chain for months now i guess the question is, guys, when it comes to that iphone demand is it defoerred or destroyed. do you just delay that purchase?
john, you also mentioned amazon can afford these extra costs but i suppose maybe some analysts are starting to question that. yes, they can afford it, but should they? should they be raising the cost of prime that was the question asked on the call he wouldn't say but always monitoring it. of course, we have that delivery fee for whole foods coming into place this week. if prices get higher in a more competitive environment does amazon have that proposition that consumers have flocked to over the last few years? >> yeah, i mean, i think so. i mean, who else has the built-in logistics i made the mistake before of saying does amazon really need to deliver faster than in two days and then the pandemic hit and, oh, my goodness, i was ordering dental floss from amazon this morning. >> target. i've gone to target a few times and they are able to deliver the same day. >> they pioneered this and continues to be important.
we heard from adobe that order online and pick up in store and curbside continues to be strong. amazon is well positioned in all of that. so, you know, who's building the infrastructure for the omny channel future well, amazon is. and then apple has the high-margin, high-price products, carl, that they can airlift as manufacturing is able to ramp up perhaps during the holiday. they have a big advantage there. >> john, just one last code on amazon the one element that got completely lost in this particular report was the acceleration of aws. up 200 basis points quarter on quarter. just not what thought people are thinking about today >> well, you know, maybe that's good for the people who are. you know, cloud, you know, we've been saying here on "techcheck" talking about the difficulties moving physical goods and moving hardware around and at the same time enterprise software continues to be an area where companies are relying to both
figure outdata wise how to get themselves out of this pinch and how to keep workers productive those are showing up in the aws numbers. >> still the profit engine of amazon. >> no question about that. on the apple front josh lipton did talk last night. >> carl, not just about iphone, of course. another big question for apple investors is going to be what does growth look like in the quarters ahead for mac and ipad. we know those enjoyed big tailwinds during the pandemic and so many of us werelearning and working from home and fiscal q4 apple just reported mac revenue of $9.2 billion. ipad revenue $8.3 billion a jump of 21% i did speak with tim cook who sounded bullish on these businesses theal changes, too, saying mac and ipad had major product announcements just last week with mac book pro and these are game changers.
we are, though, cook told me, on deep back log. ipad is also terribly constrained for the quarter, cook said. right now i'm more concerned on supply of both of those than the demand skeptics we know sound the alarm, however they say these two products are going to hit air pockets as students return to school and emee somewhere in between that mac and ipad growth will moderate, but not as much as skeptics think hybrid work is here to stay, he tells me and more people will be consuming more content at home supply will catch up with demand in fiscal '22 ipad growth of 10% both comfortably higher than the street back to you. >> josh, one of the things that i have bib een thinking about we this goes the replacement cycle for pcs have changed now you need a pc for everybody
in your household if your kids are of school age just in case they have to quarantine on their way back from vacation maybe in the past you thought they could do with just a smaller mobile device. not any more and then those devices that you had in your home already as they end of life, you're going to have to perhaps replace all of them sooner and apple with these m1 chips is in an interesting position to capture more profit margin on those. were therequestions on the cal about how apple's margins are going to be impacted by having their own chips across the back line now >> i think it's interesting, john skeptics are going to point out that maybe the case seems to be that the business has been strong but that it simply can't continue and then as the world returns to normal, you're going to hit these air pockets i think the other case is, well, yeah, there's going to be moderation, but the fundamentally something has changed. hybrid work is here to stay. and more people playing and working from home and we have to catch up the supply constraints,
as well. it was just an interesting call in general i think everybody's trying to figure out what does growth look like for this business going ahead. so much noise there. you don't have formal guidance, you have tough comps and, of course, the supply chains are a big headache that's the question investors are trying to peek through that noise and find a question to that >> thanks, josh. now, let's figure out how some financial analysts are thinking about how exactly that joining us now is a citi analyst jim suva when you look at this apple quarter and you look at what we're looking at for holiday with supplies constrained. how much of that demand just goes away maybe for wearables or for the lower price giftable stuff and how much of it remai probably for the higher end iphones and max? >> that's a great observation and question and i would say in the next few weeks ahead, i expect the media and the newspapers to all be talking about shortages coming
into the holiday period. so, i expect people to start putting in their orders earlier which will help apple's backlog. we're seeing this not only across pcs and iphones but across all pcs and all tech generally as well as other parts in your daily life i do not expect demand to evaporate at all in fact, i expect these supply constraints to keep demand going and visibility well beyond the december quarter so, we view this as a halloween scare. a bit of an early boo. we've seen this before where apple has missed once in a while on a supply constraint it used to be the screen or the camera or the case and the demand did not dry up. simply this is not a thesis changer in our mind. >> now, what about reading through to suppliers, for example. it seems to me tricky business because it doesn't necessarily mean that apple will slow down purchases of components because it knows it is going to need to
put these things together eventually, right. but then if some of these suppliers are having trouble getting supply that they need, it might not be good news for them either. but overall the macro set up seems to be good for qualcomm. >> you are spot on you've been doing this a long time and the answer is correct but keep in mind, if there were competing products out there that you could buy, that's where there is a problem but when everybody's impacted, we view it as a bit of an aberration or an opportunity again, there's really no other alternative to get because all the alternative products out there are experiencing the exact same supply chain challenges so, because of that, they're all kind of in this same game. and the game is being determined by demand. and demand is outpacing supply and that's a good situation to us >> hey, jim, i know it's easy to lump all semis in the same
bucket and they have multiple users from multiple industries, but how do you explain to the lay person the difference in the outlook between say the fords who are arguing this is not getting any worse and maybe even getting a little bit better versus a tim cook who says it will be worse in q4 than it was in q3? >> well, first of all, when you start talking about automobiles, that has a different purchasing seasonality. you don't buy that into the weekend of thanksgiving and that holiday push and not a lot of people buy cars for christmas. for wearables and iphones and tablets, it's pretty common to see that following thanksgiving. a big push as well as into christmas. different seiasonality there. this is important and little technical, but for your viewers to note that apple typically does use more leading and technology when you start getting to nanometers that are really small and super fast chips and cars are more legacy.
so, the car situation has been seeing supply shortages for much longer than apple has. and so it's kind of catching up to apple a little bit about timing, but more importantly the seasonality about consumer electronics versus automobiles that's how you bridge that gap >> hey, jim, it's deidre there was a really interesting question on the earnings call last night someone asked tim cook whether he would consider more vertical integration such as they've done with designing that m1 chip, perhaps batteries or screens he didn't say no do you think that is a possibility and that potentially some of apple suppliers should be worried going forward >> so, the answer is he didn't say no because i think they are evaluating all the opportunities. they have over 200 billion of cash they have a lot of options they can do with that and where they see if they can innovate better than others, i
expect them to go into that more vertically and we have seen that with the m1 chip. we've seen that with some of the other things they have done and they made a world of difference of change coming out with that they don't want to be stuck on legacy architecture. i think what this does is turn up the heat for call for innovation for their suppliers to work with them. if you don't work with them and innovate to the speed that apple wants, they will come in with their own chip so, i think the opportunity is apple has over $200 billion of cash they want innovation for their own products, as well as suppliers and if the chip companies don't do it, they'll go about it themselves and they show they have been successful doing so >> yeah, well noted. as we also know what apple tends to do is take money and invest in suppliers, co-innovation and lock up supply going forward without even having to buy them out. that's another play in their playbook, jim. thank you. >> great happy halloween to all of you. good to see you. >> yes, indeed
let's get back to amazon the stock is down after that q3 disappointment but our next guest joins an outperform head of internet research mark mu hany. happy friday a lot of people who traded this name for a while are familiar with the beginning of an investment cycle is this one any different than the ones we lived through in the past >> it may be more extreme and may be more complicated. amazon is so big right now, second largest employer in the country and amazon has almost become the economy if there is wage inflation, amazon sees it, if there's inflation in trucking business, amazon sees it more complicated of a business that all said, this is an investment cycle we generally think you make money buying amazon on investment cycles. >> are you at all, i mean, the guide on december operating income zero to 3 billion, what
will the danger be if they did not make money in this coming quarter? >> i don't know. we thought there was risk to the december quarter income operating guidance i thought $4 billion to $5 billion. we knew it was an investment cycle and we didn't know that big. a lot of costs involved here two questions you need to ask yourself asamazon investor anything change in terms of the revenue growth and you look at it on a two-year stack basis and the dramatic covid costs and it's faster post-covid than it was pre-covid. the second thing is, you know, the cost which of those costs are structural, permanent and temporary and elective i think if you look through it some that are permanent that are wage increases but most of the others are temporary or elective the company is making the investment decisions and get a return on that that's why i think this is a good opportunity to weigh in and buy the stock. do i want amazon to go into negative profit to start losing money?
no, i don't think they need to i think they have enough sources of profits that they don't need to >> mark, it's deidre amazon's platform or services, if you will, prime, advertising, even bigger than its ecommerce business i wonder, they're trying to become this omni channel retailer and that is one of the disappointing parts of the report they've been trying in this sphere for a while now and much smaller than their initiatives and do you think amazon is trying to bite off too much. they have fresh and food and five star stores. >> deidre, think about area wheres amazon has not shown success. physical store sales i think the big, the big kahuna, if you will, that amazon is going after is groceries i think they'll try to do it with the amazon fresh concept. for in store and buy online and pick up in store and for at home delivery
they're just starting with this process. i mean, this is going to be a multi-year investment cycle. i don't know whether amazon cracks the code on groceries i don't think they have to date. i think they probably have the talent and the resources and the money to do it i would go long on that idea i don't think we'll give proof points on whether amazon figures it out for three to five years >> mark, here's how i'm look at this streategically tell me where i'm wrong. if you are looking for an investment cycle to be doing the right thing and you want them to be investing significantly on labor, logistics and ai, right, because that gets to the third-party stuff and the regulatory issues that they have on the labor side and ai is sort of that next leg in cloud. as long as they're doing that, investment cycles, right >> i like the way you set it up. i'll give you a contest here facebook is investing $10 billion a year in something that is somewhat unknown. the met averse, something
unknown. i think it's absolutely right. i mean, if anybody is going to be doubling down on investment and infrastructure, you want amazon to do it. better at logistics than any company out there and watch them get into logistics as a service in the next three to five years. investing in ai and amazon innovates a lot on product and people don't appreciate this enough about the company they innovate on costs they can bring down that shipping cost per unit over time, even when they're dealing with the massive supply chain inefficiencies that they're dealing with now i'm bullish on amazon on the top line and bottom line >> speaking of the top line, mark ebay is showing a bit of a reversal this morning. up almost 5% but i wonder if their commentary about holiday consumer demand weighed on you and whether that suggests that maybe there is downside risk on demand for amazon, for the holiday. >> i think that demand is there. i think fulfilling that demand is tough also this two-step we just went through in the september quarter
where we had retail spend kind of quick shifted to offline stores and then also consumer discretionary spend that shifted over to travel and services and entertainment. but that's a temporary move. i think we, i don't know if we snap back but revolve starting in this december quarter amazon fulfill is efficiently and not fulfill it efficiently in a way they have done before but work through the amazon system and my guess is that you're going to have a nice increase in margins on amazon in the pack half of '22 revenue growth is going to accelerate that is the momentum pitch behind why i think why amazon is one of the best stocks to own in 2022 >> interesting we'll probably start talking about some new favorites in the coming weeks mark, as always, great to see you. mark mahaney >> thank you, carl guys, let's turn to the other story of the day and that is meta, of course
i'm here in front of that new sign after last night's big reveal here's mark zuckerberg on how that name change came about. >> i love meta it means friendship, love and kindness >> that was meta world peace i think our producers are having a bit of fun here. facebook's most important day since justin timber lake made them drop the the from their name >> drop the the. just facebook. it's cleaner >> okay. i know that we do have footage of zuckerberg showing off what is actually possible in the metaverse. take a look.
>> that is minority report again, our producers having a bit of fun here as many people on twitter are facebook's new reality a great way to avoid ever being outside. like i am right now. perhaps my ava tar could do that in the future. i think we were able to find the right clip here we go third time a charm mark zuckerberg leaving the metaverse and reinnerreinterrin real world . >> carl, our producers really shine in these moments i think they're perhaps excited for the new matrix >> i think, if anything, people talk about a distraction for facebook but for a lot of people
a way to have some fun got worldwide attention for sure >> i'm trying to figure out what the impact is for inesthvestors. we noticed the ticker changes but most people, the name of the product, facebook, is staying the same still instagram and still whatsapp and maybe this is also more about employees and the brand risk on employee loyalty and just a feeling working around meta saying you're working for facebook in other cases. not everybody is working on the facebook product and so that takes away perhaps some risk >> i mean, i have been in this location a bunch of times and there was this different feeling as i drove up this morning and saw that new sign. i'm sure that is what a lot of the employees are feeling like, particularly the ones not working on facebook. a really good review and analysis of what happened.
i just want to read you a line from it because i thought it was really relevant and why this is important from google's rebrand from alphabet. a future that yet doesn't exist and believing what happens rests on the degree to which you believe that zuckerberg, the founder can accomplish more than any near manager that is such a key point here, john zuckerberg is the founder and majority vote in power and he can do something like this change the entire trajectory whether he succeeds is a question the first step is a big one that perhaps only a founder is able to take. >> indeed. i keep looking at that new logo and thinking infiniti, yeah. maybe. spiderman eyes also maybe lungs. you know, breathing in the digital future >> so many different ways you can go with that logo. meanwhile, getting a check on the major averages to close out october. tech and the nasdaq up better than 6%. we will highlight some specific
names, not in faang. can we still call it faang "techcheck" just getting started. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
supply chain issues, once again, souring the company's guidance shares are down over 5% for the year but off the intraday low. citi says their top value tech hardware name although shares, guys, have come way down deep from the mid 70s earlier on. >> yep negative year to date. crypto check also on the way to a break. ethereum hitting a new all-time high bitcoin up about 40% in october on pace for the best month of the year plus weigh in on facebook's name change more "techcheck" is next
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they have customized solutions to help our family's special needs... giving us confidence in our future... ...and in kevin's. voya. well planned. well invested. well protected. welcome back to "techcheck." i'm carl quintanilla markets close to session highs 45.93. closing out a pretty strong october for tech
dominic chu is looking at what names saw the biggest moves. >> in both directions, carl. some volatility despite that great move that we've seen for many parts of the market we could see the best month since november of last year. something to keep in mind. first of all if you want to look at the broader s&p 500, the sectors that did the best, the more value economically sensitive one likes energy up 11%. the best performing s&p 500 sector and consumer discretionary continues to show strength up 11%. meanwhile the worst performer secting communication services sector due in large part to some of the weakness in the social media type stocks only up one-third. now if you drill down in terms of the winners we saw so far this year. you check out some of the names that we typically talk about like semi conductors nvidia one of the best performing stocks on the s&p and nasdaq composite overall, as
well on the solar side of things a hot part of the market over the course of the past month up 53% transportation stocks specifically the rail companies. union pacific is up about 23, 24% and also look at names like csx and those names doing particularly well in the month of october now, if you take a look at the biggest losers on the down side. you take a look at names we often talk about upside gainers over the course of the last year and beyond fintech, paypal down about 10% so far in the month of october moderna actually jockying for the worst-performing stock in the s&p 500 over the course of this month in october. down 11% and twitter on that social media site down, as well. social media, moderna, a vaccinemaker for covid-19 that's seeing a lot of positivity over the last year and then paypal, as well. one other thing to keep an eye on, guys just biotech or biopharma in general the large cap ones
within the nasdaq 100. gilead sciences and biogen and amgen. three of the worst performing stocks within the nasdaq 100 perhaps, carl, perhaps, deeddei a move as people take stock in what is happening in biotech. >> we talked about this yesterday, some of the pandemic darlings losing a little momentum another stock i want to identify that just opened this week for trade and that is rent the runway it has now closed lower every day since that wednesday ipo it opened at $23 priced above at the high end of its range. but, look, now, it's trading below $19 a share. take a lookt a ipos more broadly. substantially underperforming the market here's the renaissance ipo index versus the triple q.
cramer tweeted two, and then there's everything else. he'd stick with everything else. >> yeah, i wonder how to put that up against this really, i think, weird action in zendesk and what that says about risk and what that says overall investor appetite as we see some of the most successful companies in the market. apple, amazon dealing with supply chain crunch issues but we also see shopify dealing with some of that stock yesterday went up. it's a bit puzzling, carl. >> it is and to the degree that ipos live or die on retail interest. one thing that we're keeping in the back of oour heads, john, commentary out of robinhood. whether as the impact on the broader market and certainly for some of the new issues that are so often the center of attention.
>> yeah. and, i mean, we've got those moves in zendesk and momentive up right now the part of what these companies are about is data behind these companies and understanding what customers are going to want. understanding the interaction between the company and the customer and that continues to be important. so, d, i think it goes back to, you know, investors for the most part need to be long term and which companies have the right ip and the right strategy to succeed even if they're not popping right now. but i don't know, this zendesk momentive thing especially given the activist in momentive. i don't know if this deal could happen with the stock doing what they respectively are right now. >> when you look at some of those consumer names, john and carl, you have to wonder, too, what is a tech company i know there was some questions around that, particularly for the likes of the rent the runway and some of the other direct to consumers companies, john.
they got data. what they do with it and their cost is important to factor in also >> yeah, indeed. well, after the break, tesla is not this week's best performing stock. we'll tell you why lucid motors is up 50% or i don't know if we can tell you why it's up 50% why it's up anyway since monday. that's next. stay with us
time for gut check on lucid motors shares surged as much as 47% during trading on thursday after the company confirmed first customer deliveries of its $169,000 air dream edition sedan begin saturday stock hit its highest point since the company went public through a spac deal in july before retreating yesterday afternoon. d, between that and amazon disclosing the stake in rivian, tesla today $1,100 pretty pivotal week for evs. >> indeed. and we've definitely seen the stock action follow that across not just lucid facebook going meta. you see the sign right behind me mark zuckerberg saying it represents a shift in focus towards new technologies but will it work is this a distraction? is meta even a good name
joining us now with his wharton school of business marketing professor. what is your score and tell me how is this different or not from alphabet and google's change >> well, thanks for the opportunity. it's great to be with you, carl, deidre and john. first of all, let me say i will give this kind of a b minus and the reason is this when we think about tech companies, we think about branding and what are we really trying to do here? if we're facebook, are we trying to get people to forget the whole cambridge analytal thing and bad stuff, misinformation and all these things that have been going on with respect to facebook and suddenly reimagine what facebook is this is an attempt to try to do that and say, listen, we started off as this two dimensional kind of connection mechanism and now we're going to go to this much more immersive kind of virtual reality, augmented reality and smart goggles and oculous that is the same idea connecting people but in this very rich and
next level and immersive and metaverse sort of way, if you will so, this is an attempt to try to do that. but what i think is going to happen is people will be onboard with the new technology and all of that but what will be very difficult is to sort of erase all the previous stuff that we have in our minds about the old sort of facebook so, that will be the struggle here, which is to say can we replace those old thoughts with these newer thoughts >> right and do those struggles sort of follow what mark zuckerberg wants to create in the metaverse. this is about him wanting to own a platform and operating system. get the chance that he didn't have for smartphones, right? >> i think that's absolutely correct. i think he really wants to be the leader here and he wants to be the public face of this i think in my personal opinion, if i were zuckerberg, i would recede i would put someone else out there. maybe someone a bit more ka
charismatic and most consumers i'm aware of three studies that show consumers, american consumers distrust facebook. almost half of american consumers. you have this ongoing challenge of do i really want to continue to do this and if zuckerberg, by the way, this is not sort of, you know, poopooing on him you have to know what you're good at. he's not the face of kacharismai that you might see with other ceos in the tech world step back and let this meta be better because in some cases you're trying to create this totally new perception and you don't want to be drug down by the old perception >> the tough thing about this is it's a controlled company and zuckerberg has control even if you put somebody's face out there, we all know he is the one making the call. also if the purpose of this were for the general audience for lawmakers and customers to project some change, then
wouldn't they have changed the name of the facebook product the corporate name is what is changing it seems the audience is more employees or shareholders, not the consuming public or the regulators >> i think that's a fantastic insight. i think you're signaling to these particular audiences or constituencies that you just mentioned and so for the consumer, the consumer, here's what we understand about the consumer the consumer basically, you know, they are kind of stuck on facebook and when you ask people, you know, what would be required how much would we need to pay you to deactivate your account by the way, this study has been done in 2018, 2019 you have to pay people at least $1,000 a year to get off facebook the problem is, they're kind of stuck in that ecosystem. they're not moving away from it any time soon. i think the important thing to signal to your guys pof point a, we're on the cutting edge and this is where connectedness is
going to be headed and i as the leader of facebook i can sort of be the one in charge of that ship to take it in this new direction and bring all these new people, younger consumers onboard. that's the other thing no matter how bad the perception of facebook, the younger consumers will come in and not know any of this old baggage stuff and new target market entering in and hopefully coming onboard the platform >> americus, i'm interested as a case not just for facebook but in general we're in this period now where consumers are distrustful of technology and suspicious of being tracked and yet you can see the obvious draw of gaming and ar and vr. do you think within five years this is something we'll want to take part in in? >> it's a great question i think the answer is yes because it's going to be something that we're seeing it all across many dimensions of consumer behavior. this idea of connection and immersion and a much more deeper kind of a way. and i think that is where things
are headed facebook is smart in my opinion to try to be in front of that ship and probably try to lead and be the face of this. but i think the biggest challenge will be and by the way, what our research is also finding is that when you talk to younger consumers, they understand that they arethat facebook isn't hurting there is a transaction happening whereby i am giving you my data to be able to access this platform to get information and be delighted by the types of stuff and to have my network kind of scaled and in this one specific standardized place. younger consumers get that the more digitally savvy i'm a digital immigrant. i'm trying to figure out all this stuff what is tiktok and other stuff but the younger consumer understands these things and they're going to be ready to jump on board quite honestly and they won't have any negative understanding of any of the previous elements of facebook. >> right with this move, americus, facebook made itself synonymous
with the metaverse you talk about younger generation and think about snap and investment community and may think about nvidia in terms of investment opportunities and other companies trying to play in this space, where do you think the opportunity is and what kind of challenges do they have now in terms of marketing now that facebook wants to be called meta >> i think it's a great question, deidre in somesenses the world of tec is evolving like you all cover every single day in terms of investments and things of that nature i think people and if you just look at sort of the consumer movement you're seeing consumers taking power. right. stepping in and like trying to go against the big giants in their own way and from an investment perspective they're going to be keenly watching this information and being able to respond to it because what your show and other shows are doing is bringing all this information to common folk and they can internalize that information and make their own investment decisions and do all of these kinds of things related
to tech. we're only going to see tech growing and growing and growing with respect to investment opportunities, especially with respect to younger consumers >> yep that's what we're here to talk about. am americus, thank you for being with us. >> thank you, appreciate the opportunity. up next, we'll come back to the supply chain and how it is hitting stocks like apple and amazon exclusive results from our cnbc technology executive cncouil survey we'll be back in 30 seconds. don't go away. and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
apple and amazon results both showed the risks of supply disruption for stocks. the demand is there but it's the supply that remains tight. those disruptions the second biggest concerns among tech executives right now, that is according to the latest results of the cnbc technology executive council survey a network of some of the largest companies in the world 26% of the participants say supply chain disruptions are a bigger challenge to them than the labor shortage or cybersecurity. overall, four out of five say their companies are experiencing some kind of supply chain disruption when asked what is the most significant consequence of those disruptions 34% say the inability to meet customer demand and 17% say the biggest consequence is the ability to upgrade company technology 80% of participants do expect to spend more on technology in 2022 that might be a result of higher costs due to supply chain
disruptions and the ongoing needs of the new post-pandemic workforce. got to invest in digital transformation when asked how technology can help fix supply chain issues, supplied a range of ideas. one suggested less reliance on china. for more results and to learn more about the council, you can head to cnbc.com/. up next, an argument that wall street is misvaluing amazon as compared to other cloud stocks and don't forget to follow and subscribe to the "techcheck" podcast. listen any time, anywhere you download podcasts. we will be right back. is is fin. and lincoln financial solutions will help you get there as you plan,
let's get back to amazon trading lower today, as you know and to mike santoli, who has a different way of looking at its valuation compared to peers. hi, mike. >> compared to peers specifically of aws and web services, the cloud software business over the last few months, amazon shares have done worse than flat whereas the comps, microsoft, alphabet, snowflake, digital ocean they've actually had a very good run and presumably because aws has done better than expectations in the last couple of quarters, you would think
that that piece of amazon is gathering value the same way that these comps are and this is b of a's way of looking at things here and what's happening is the market is devaluing the e-commerce part of amazon by default. take a look at amazon relative i have noted for a while that it's traded more in sync with the cloud group than it has with retail and it probably does tell you that it's becoming an increasing part of the valuation arguably on the sum of the parts basis over time. it seems as if this would be supportive of amazon's valuation, the idea that it should have more of a cloud characteristic, even though, guys, you never get full credit for something embedded inside a very huge company even if it is very much a top competitor in a highly-valued peer group guys >> quarter after quarter, mike it is amazing that aws is providing all of the profit to amazon and you have the quarter like the one we just had $2
billion in increased costs and the quarter cost, $4 million is subsidizing the e-commerce play and when you look at amazon versus the other retailers when you get the much higher valuation. >> no doubt about it has to be, if you did want to buy this little dip in amazon, the bet has to be that it's not going get any worse for the retail side in other words, the size of those subsidies if you're looking into next year should not be growing and should be shrinking on a relative basis and that's the calculous you have to make and increasingly, you'd have to figure out if amazon might want to find ways to surface that value more that's coming from aws >> speaking of surfacing value thank you, mike. check out shares of ad lassian it makes dev ops software and edges out nvidia as the
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it has been coming to a close. twitter, by far, the worst performer down 14% microsoft's come out on top and microsoft now the biggest company in america by market cap, john. it's been an interesting race at the top there in that ether of market cap and certainly today it's microsoft's turn. >> it's not going to end and it's a snapshot moment and they're still doing laps around the track, dee, but with the supply chain constraints that apple is facing with microsoft has and kind of hard to see how the calculous changes a lot from here i would also point out outside of earnings, pinterest for the week, boy, down more than 20%. so a lot of action outside of earnings, as well. >> yeah. that will bring us to paypal coming up, as well it would be interesting to say anything about that reported acquisition talks with pinterest. next week, carl, i'm looking at the ride share companies uber and lyft they're going to start an
average pay of $18 an hour and makes you wonder how uber and lyft are getting drivers to the platform and what kind of benefits they're going to offer and they have to offer that sort of minimum wage that we talked about over the last few years or so that's up next as well as others in the sharing economy >> it's going to be an interesting and you mentioned some of the travel names like air b & b and we'll get marriott and hyatt, as well as we see the mix between these disruptive companies in the travel space versus some of the legacy names and then, john, a fairly decent dose of media. we'll get some roku in there, fox, as we continue to look at how streaming and media consumption changes with the very healthy consumer. >> roku continues to be so interesting to me. they are in some ways a pure play on streaming, carl. they also have a lot of leverage in the ecosystem in a way that i think a lot of people don't appreciate advertising, consumer loyalty, all of that.
so important to watch that as we head into q4 with everything that we see happening with netflix and others >> and guys, one last thing, i just want to say throughout the show, we've had some employees take selfies in front of the new sign we have to identify that i don't know if you've seen it behind us. they're excited about it >> they're going to have plenty of toime. have a good weekend, now to the half. >> i'm scott wapner. front and center this hour, what it means for stocks and whether both names are a buy on today's dip and we'll ask the investment committee. joining me is kerry firestone, and shannon saccocia, dow is positive, s&p was positive slightly knocking on the door yet again and nasdaq was the loser coming off its lowest levels there's the russell yield on the ten-year and pete, the story of the day is the comeback and that's how i see it.
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