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tv   Tech Check  CNBC  March 29, 2022 11:00am-12:00pm EDT

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been up 11 straight sessions, now in the green for the year. actually just negative for the year by 0.22%. tesla up again i am seeing a bid for some of thenames, so to speak, in ev, with rivian up 12.5% or more this morning still down 50% for the year. that'll do it for "squawk on the street." "tech check" starts now. good tuesday morning welcome to "tech check." i'm carl quintanilla with jon fortt. dierdre has the dayholding in t.
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churning waters for netflix. a new report could mean trouble for the streamers. which strategies are best positioned, jon? let's pick it up where david faber left off apple winning at the oscars and the exchanges. apple shares up 11 days in a row now, on track, as you mentioned, to top the longest stretch of updates since 2003 the streak adds $407 billion in market value, putting it near the $3 trillion market cap i believe it is at about 2.9 this morning check out this stat from compound capital apple has the largest on the s&p in more than 40 years. more than 7% of the index. the last company to come close, ibm in 1985. you'll recall, carl, that's the year after the famous 1984 apple
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super bowl commercial where the woman was throwing the hammer at big brother, you know, because ibm was so big. >> yeah. >> now in the s&p, apple is that big. >> so true, how the tides turned, jon. the spoke had a great stat this is the fourth time that apple has rallied for ten days or more. the first such streak since july of 2010. some argue, jon, that, really, from a product standpoint, this is not a year of huge innovation rel toif relative to past years, but what if we're on the cusp of moving from a period of shipments and asps to where they're able to monetize the whole installed user base through a subscription for hardware that would be a game-changer, for sure. >> indeed, yeah, carl. some would argue that. i would argue that we're at this point where apple is taking the next step in vertical integration, which has real implications for what margins are going to be. what they're doing with the m1 chip, bringing more of that in house, spreading that across the
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mac line and potentially setting up what would be an advantage in wearable technology, if they're able to innovate on silicon and have lighter weight, more po power-efficient devices, that's how that would carry forward but at what point, if ever, do they get another top line bonanza like the iphone has delivered for, you know, more than a decade now, carl? there were people who were asking, what comes after the iphone used to be something after the iphone for apple to get above $1 trillion market cap or above $2 trillion market cap. well, maybe they didn't need it. maybe they need one to get above the $3 trillion market cap, carl whoa who knows. >> market is looking past the cautionary headlines from nikkei another warning of potential supply production cuts we'll keep an eye on that. our next guest calls tech and other names, quote, a terrible place to be joining us today, investment
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management co-founder and cio, meb favor. if you believe we're in a structure down trend, the top of this channel, you'd argue, is not a good place to buy. >> every time you have me on here, i'm bearish. i don't want to be the deb knee downer of the morning. funny you mention apple. we've held apple in our largest and older etf for nine years and just sold it this quarter. i'm feeling melancholy about that look, there's yellow flashing lights we've had stock valuations, which have been high for a long time we've had the yield curve inverting. we have a big one, which is inflation. a lot of people don't know about stocks hate inflation. historically, inflation above 4%, multiples get cut in half. multiples above seven, it's even worse. will it stay i don't know you have other things going on
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the stock raise, retail getting involved, high expectations. these are all yellow flashing lights but there's one indicator that's really the final boss, right you really need to overcome before you get fully bearish for the red light. to me, that's the trend. well, the trend of the market is finally starting to roll over january of this year we'll see where we end month end. things have been bouncing in tech and the broader markmarket. to me, it puts it from the yellow flashing light to the red flashing light category, where we call it the dark quadrant >> so what changes that view is it a realization that we are at peak commodity pressure, or suddenly ukraine gets resolved >> you know, the problem with the other indicators, other than price, is price is the only indicator that can't diverge from itself. value could keep going up. stock markets can get more expens expensive. the trend really helps keep you from being off the wrong foot.
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go back 100 years and put the stock market into the most simplistic category. cheap or expensive we can look at ten-year pe ratios uptrend or downtrend the best quadrant to be in is an achieved uptrend makes sense. 17% a year, amazing. the worth quadrant to be in is an expensive downtrend, where you do essentially zero. the second best is an inexpensive uptrend. that's okay. if stocks are expensive and going up, you do okay. the pain comes when you flip from being in the sort of expensive uptrend category to expensive down ttrend. that's when things get nasty, and that's where we find ourselves today. we'll see how the next few days -- if the market keeps going up, it might change. for now, it is more time for caution. >> that's what i was wondering you laid this out in a post tha you put up the end of february you pointed out that something similar to the, let's see,
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200-day moving average on the s&p, you know, we were down below that then in the last couple of weeks since march 14th, the market has spiked up again. now, i mean, have we gone from red light back to yellow, and is it just a question of how long we stay at the levels we are here without going down? to convince you we're in a yellow light category now and not red? >> yeah. we look at things on the monthly time horizon i don't like watching the markets day to day, hour by hour, minute to minute it is too stressful. ask me in a few days when the month ended. that mep helps me separate the s from the signal. but the reality is you don't, obviously, have to just look at the s&p. there's plenty of other sectors. we compare this similar to the late '90s or early 2000s market cap weight we think is crazy expensive. you can hang out in value. we talked ability that the last couple years we think there has been a regime change, really since 2020, where value stocks are finally having their moment again we think, you know, back to
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2000, 2003, small cap value outperformed the broader market by 150 percentage points we think you have a similar setup today. you can hang out in the u.s. stocks, just not market cap weighted of course, there's other things we think are really useful, like real assets and also foreign markets. happy to get into those. anything other than u.s. market cap weight, i think, is a good prescription. >> one more domestic from me that is, what do you think is the broader meaning to be derived from apple's huge weighting in the s&p as of right now? it is expensive. apple, based on where it's been historically it is a pretty stable company of all. then, you know, we just had a writer from "the journal" on yesterday, talking about the action in the ultra pro qqqs,all the risk retail invisers are taking on. what does that tell you about what color the light should be on this market >> i'm an apple fan boy, so i'm sad to see it go
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the reality is, the history of market cap weight. if you look at the largest stock in any index, they go on to underperform that broad index by 3 percentage points per year for a decade that's simply capitalism and free markets, right? you have a scenario where, by the time apple gets to be almost $3 trillion company, there's a lot of other companies saying, hey, i'd like to make money, too. this creative destruction happens. the reality of market cap weights, which you just referred to, there is no tether to price. so you have stocks at simply a price-based index. as they go up, they get more expensive. underperformance happens in sectors, countries all around the world. one of the simplest things you can do to outperform over time is simply avoid the largest market cap weight. so, sad to say, but a lot of the largest market cap weights tend to be the tech names here in 2020 i think if you are looking towards tech, emerging markets
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are a much better opportunity. taiwan, korea, and some other places that have really struggled over the past decade. >> finally, i'm wondering what you think explains the rise in some mean names the last couple w weeks, let's say is that a symptom of the dynamics you're talking about. >> you know, the animal spirits of the market are always hard to know what the underpinnings are, as you guys know if we were sitting here a year ago, we had the etf with the largest concentration in gamestop so these scenarios play out over time it's a story as old as time. people get excited about whatever investment it is. i mean, look at energy stocks, booming today. two years ago, they hit 2% of the s&p. back in the '70s, they were almost 30% of the s&p. it is kind of wash, repeat, and chasing the fads it is hard to predistrict. we often say it is better to be
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rip van winkle when it comes to markets. close your eyes and avoid the craziness. but that's the fun part, too i would avoid, at best, if you could. >> price action has been interesting to watch good stuff, meb. good to get your take on stuff, especially in the environment we're in now thanks talk soon. >> cheers. speaking of, growth names showing signs of life in march, including the meme stocks we mentioned. we will talk about it next "tech check" is just getting started. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do.
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also making a move this month, gamestop and amc seeing monster gains yesterday. they are losing a bit this morning. gamestop would be breaking a ten-day win streak, carl i think in market terms, that is two weeks. >> exactly right five and five. anti-trust regulation is in focus as bills targeting bill tech and market power gain bipartisan momentum in the sen n senate juli julia is here with the latest. >> anti-trust bill targeting apple, google, and amazon aiming to prevent platforms from favoring their own products and services the doj giving an endorsement of the bipartisan american innovation and choice online act, which the senate committee approved in january as similar legis legislation proceeds in the house. dodg doj saying, quote, by controlling key arteries in the nation's communications,
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platforms can exercise outsized market power in our modern economy. amazon, alphabet, meta, and others have been lobbying against this bill. that would prevent the platforms from listing their own products higher in search rankings than their rivals it would prevent them with providing customers with free or low-cost services. warning it could be harder for platforms to protect users' privacy and prevent others from monitoring them. the legislation has not been voted on in either the senate or the house, but the biden administration's support could increase its chances of passing. we reached out to amazon, google, alphabet, and apple and meat meta on the latest doj support apple directed us to its statement. quote, we have and always have been believers that competition drive us all forward, and we are constantly evolving to make the app store better apple saying the app store creates opportunity for developers to grow their
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businesses google didn't have anything new to add, but they did point us to a blog post from january which warned that this legislation could give a free pass to foreign companies while limiting the companies based here. >> lots of moving parts, thank you. it's not just the doj taking on the major tech players. washington, d.c., has filed lawsuits against amazon and, well, smaller player grubhub, saying they want to protect district residents from what the attorney general's office deems unfair practices joining us, attorney general for the district of columbia mr. attorney general, thank you for being with us. first of all, i'd actually like to start with amazon a superior court judge dismissed the complaint you have i believe i'll simplify it here, but you're arguing the fact that amazon was telling merchants, you have to give at least as
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good a price as at amazon as yo are elsewhere. you argued that caused prices to rise elsewhere, and, therefore, it was bad are you going to continue to pursue that line after this dismissal, and why is it important, if so >> sure. thanks a lot, jon. it is always good to be with you. in a word, yes the district of columbia is preparing a motion for reconsideration before the trial judge who dismissed our suit let me brief ly tell you about it you summarized it well what amazon does, boeltth to fi and third-party sellers, is it mandates after it builds in on the price, that those sellers else, including on their own websites, for anything lower than the amazon commission-laden price. if those sellers seek to do that, amazon goes back and
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recoups the difference what that does, jon, is it artificially raises the floor for the prices amazon is able to mislead us into thinking that they are actually the cheapest provider of the product when, of course, the only reason why they're so is because of that contract. they're using their market power to force people who want to get on that 70% electronic mall that amazon controls, to have everybody pay more for those goods and services we think that's illegal. we think we'll be vindicated in court. >> okay. to follow up on that, though, it sounds like -- and this is different from what they were accused of doing early on -- you're saying that they're giving merchants a big profit margin opportunity, where if they can provide a better experience using shopify or other direct-to-consumer
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tactics, they can make a lot of money, grow their business, grow their experience to be better than amazon. it's sort of a non-traditional anti-trust argument, wouldn't you allow? >> i would agree with you. that now, of course, with these extraordinary companies -- and i have lot of respect for the technology, the ingenuity of the companies -- traditional anti-trust law may not have contemplated the ways in which market power can be ute liilutid what we know is when market power is utilized to force sellers to increase prices, that absolutely stifles innovation and creativity and results in you and me paying higher prices. >> i wonder what you make of the argument some argue, that having as much of a cash cow as aws subsidizing a consumer-facing retail business, in this case, does that fit any definition of
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anti-trust if it does, what does it say about other companies that might have a very large subsidiary that provides a lot of cash and allows them to keep their pricing aggressive >> well, i think this is a complicated area, to be sure what we've seen, jon, to be clear, is that amazon has engaged in these practices for over a decade. let me take you back to europe, where europe initiated an investigation on the same theory that the d.c. lawsuit is based on amazon finally stopped the practice in europe after about six years. so when amazon knows it is violating the law, knows that the investigations are catching up with it, it will change its practice what we're doing here is seeking to have it change its practices so that sellers can be free to sell their products on any means at any price that they determine. that's the way it should work.
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>> attorney general, we're getting close to the lunch hour. it's appropriate that i ask you about food deliveries. you're suing grubhub for deceptive business practices you say the company is cramming in hidden fees so is the solution for these providers to just be transparent and disclose the fees? i thought it was interesting what doordash did probably a year plus ago. giving restaurants different, you know, price options, if you want the marketing, then you pay this price if you don't want us to handle, you know, showing your menu and don't want to handle delivering the food, you pay a lower price. to my eye, when i look at doordash, if i order something, they gave me the breakdown of what the prices are. is that really the issue, or is there something else >> i think you're exactly right. what consumers and users like you and me want and certainly d.c. residents, we want transparency on prices and fees. we don't want any misleading user fees at the end
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we don't want any tricks and we want the gig tech companies, as great as they are, to follow the same rules of transparency that applies in brick and mortar space i want to add one other point about these instant delivery services again, i'm a fan but it is really important to note that workers oftentimes are also taken advantage of. we have stepped in to enforce the law to protect those delivery drivers and food delivery services people, especially when the company has sought to take their tips or their service fees again, when you're exercising generosity and thanks because of a great delivery, that money should go to workers, not the company. we need more transparency in that space >> well, you know, in the news business,we are also a fan of transparency glad you came on with us here on
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"tech check. attorney general of the district of columbia, carl racine, thank you. >> thanks, jon meantime, stocks getting a boost in the rebound cloud computing etf is a bit away from going positive for the month, after four consecutive months in the red. check out moves on names like snowflake, up almost 50% since mid-march. we'll haveore te mafr the break, as the s&p is still hanging on to 4 rksz 600 here
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welcome back to "tech check. i'm jon fortt with carl quint quintanilla. julia, the nasdaq outperforming, up better than 1% as growth across the board the top gainer on the index at the moment -- trouble for the streamers. according to new data, it may be julia is going to break that down in a moment first, morgan brennan. >> hi, jon mod moderna's stock price is getting
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a 3% boost as the fda authorizes an additional covid booster for vulnerable people. people aged 50 and older, along with people 12 and older who are immunocompromised can get a fourth moderna or pfizer shot. pfizer shares are also up, but the gain is more modest for that name up about 1%. shares of lhc group are up almost 6%, meantime. united health has a deal to buy the in-home health and hospice care provider for $5.4 billion in cash. approval is still needed from regulators and lhc shareholders. the sharp increases we've been seeing for house prices, well, those accelerated in january. widely followed index shows a national gain of 19.2% year-over-year that is slightly higher from december's increase. a spike of almost 33% leads the nation a hot growth rate for a hot climate.
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back to you. >> thanks, morgan. last quarter, slowing subscriber growth at netflix sent the streaker stocks tumbling things could get worse for netflix. actually, the streaming industry as a whole julia, as jon said, has more on that julia? >> well, carl, a new report just out this morning points to growing points of pressure on netflix, in particular of the five countries that deloitte surveyed, in three of them, consumers preferred ad-supporters services with no monthly fee rather than a subscription with no ads now, it is good news for those streamers with ads, such as peacock and hbo max, but it does put more pressure on netflix to embrace advertising for the first time another factor that puts pressure on to invest more in content, a quarter of the people in u.s. canceled a streaming service and resubscribed to the same service in the last 12 months, as people are chasing new shows and cancelling when they're over with an average 37% churn rate
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in the u.s., younger customers are churning at much higher levels than the average. 51% churn rate for gen-z 52% rate for millenials. gen-z respondents in all five countries polled said video games, not streaming content, are their favorite form of digital entertainment. quote, streaming video companies aren't just competing for audiences with each other, they're competing with different, more social and immersive forms of entertainment. of course, netflix did cite competition as a factor in its last earnings as it projected the addition of 2.5 million subscribers in the first qu quarter, below the 4 million subscribers it added a year earlier. netflix shares are down 37% since the last earnings report the end of january guys >> julia, this is so interesting because you mentioned video games. sony just out with news of a
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playstation subscription service. at the same time we're seeing all of this churn in the streamers. so are we moving more into an age of tiers, where the preferred strategy is, yes, you have premium for people who aren't inflation averse and don't want to watch commercial, but increasingly, as perhaps more of the population moves into tougher economic times, you just got to have a free or ad-supported option? >> yeah. or lower cost ad-supported option that seems to be what we're seeing from the likes of hbo max and peacock. i think the gaming piece of this is interesting obviously, netflix has been investing more in games. they've been buying these game studios. the idea is that having those games as part of their subscription bundle will make it more attractive, will mean people want to stick around because they're playing the games every single day they won't cancel when a season of a favorite show is over, once they've binged through it. i think the question is, how much gains can make that core
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netflix service more appealing, or whether we see netflix move into one of these tiered models, as you mentioned maybe the top tier has games and bottom tier doesn't. it seems like we're increasingly feeling this pressure on netflix to go for something ad-supported so they can offer it for a lot less. >> speaking of premium content, we were talking about the oscars yesterday, of course will smith and the slap, slapping chris rock. you were raising the questions about the pressure on the academy. since yesterday's show, will smith did apologize publicly on social media to chris rock, and the academy said it is launching an investigation what do you expect to happen next any insight into kind of the competing priorities or outcomes that we could see here >> well, interestingly, i want to put those things in order the academy said it was going to have an investigation and to try to figure out what the appropriate next steps would be.
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of course, there is this question of whether the academy would rescind his oscar. i don't think that's going to happen i've seen no indication they'd take back his oscar. but whether there would be repc reperc repercussions. taft after that, will smith apologized specifically to chris rock, which is something he didn't do on stage accepting his award sunday night i think that was a very well-crafted apology, very thoughtful i think that may help address some of the academy's concerns, or at least help them work with him as they move forward on this certainly, having the apology is a key step in helping the academy figure out, you know, is he contrite? is he really apologetic here now, they figure out what kinds of next steps they need to take to make sure they're making it clear to their members, viewers, abc which broadcast the show, that that behavior is not okay on the air when they're doing this broadcast will smith is on board with them in trying to move past this. >> yeah. a lot of folks going back and
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reading the code of conduct of the academy yesterday, julia thanks speaking of media, where can you find opportunity right now our next guest is maintaining his position on disney, pointing to its lead in streaming and, of course, the pent-up demand for travel here to discuss, asset management founder and partner mark morris. great to have you back good morning. >> thank you for inviting me, carl i appreciate it. >> talk to me about disney and, i mean, it's got this fascinating hybrid quality to it it worked to a large degree in covid for one reason now, people are turning to another reason which one are you buying it for? >> for all of them i'm buying it for the fact that disney is the world's leading entertainment company. it has a management today that's focused on creating a lot of content for people who want to see it, want to watch it, want to attend it because you go to the parks, and you're attending it. it all fits. we like it also because more
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than any other entertainment company, they're able to monetize their ip through travel, through lodging, through cruises. i mean, they're right where, i think, people want to be today, with tremendous amount of pent-up demand for travel. we're having a session today in orlando focusing on all of the parks and what they offer people. >> yeah. the ability to help finance their streaming costs through this incredible ndemand for the travel-related stuff, the parks, hotels, and everything else, where does that leave a name like netflix where you don't have the ancillary business? >> it is really intriguing because you have smart people. they know they're in the entertainment business they're not in the streaming business streaming is a way of getting entertainment to people. i think disney is far ahead
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because they have other ways that are working but i think they're really smart guys i think they're doing a lot of intelligent things we have to wait and see how it evolves. we have a very small position there because we don't want to forget about i. t. but the valuation at this point constrains us. >> morris, how much are you thinking about social and reputational risk and the financial implications in this market months ago, we saw netflix dealing with that with dave chappelle. now, we see disney dealing with it with the florida laws has bob made a pivot in his ceo style you're satisfied with, or does it concern you? >> look, i like a lot of things he's done. i certainly like the fact that he understands the importance of streaming as the primary means of film and game distribution in the future and the fact that he's acquired
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all these streaming rights for espn so i think he -- i think his technological vision is strong the real question here is does he have the leadership capability that an entertainment executive needs? there are very few guys who have it ted cerandos does. that remains to be seen. i'm not saying no at all because i think he pivoted quickly when we understood the importance of satisfying the needs and the secensorship of scarlett johansson. i think the key thing that any entertainment ceo has to understand is you have to keep your talent happy. talent, today, goes, obviously, and includes the performers. it's critical. but it includes the cinematographers, the directors, the animators, the imagineers. it is an understanding that the people who produce this product
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are very conscience of personal rights, individual rights, and civil rights yet, theperspective. this ain't easy. i think we have to see how he handles it. >> what's your take? we were just talking about this with julia for disney, specifically, and perhaps extending it to other players. the balance between ad-free subscription, the revenue stream and loyalty that engenders, then reducing churn by offering lower cost or ad-supported options even though it seemed, led by netflix, we were supposed to be entering into an era where ads weren't the thing. >> look, i think that entertainment requires audience. the question is, can you get the audience and properly monetize it if we go back in time, abc, cbs, nbc made an absolute -- and still do make a lot of money just providing free entertainment or seemingly free
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entertainment. in return for that, you have to watch a had lot of commercials you do what your audience wants, as long as the numbers work for you. i'm impressed with the fact that disney is considering adding an ad-supported option. i think that's the way to go the way to go is do what your customer wants, as long as it makes money for ya >> finally, morris, speaking of names that have a hybrid quality to them, i know you watch uber you might even own some. we got another 1.5 month high here reports they might add san francisco to this list of cities where the taxis are on the platform are you buying it for rides or eats or both >> both. i think the key thing here is that the company does have a lot of cash. a lot of liquidity it is now starting to generate positivity on a fairly consistent basis i think the ceo has done a
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phenomenal job of picking up or take over a business with tons of problems, political problems, pr problems, tech problems, endemic, epidemic issues that, you know, nobody has had to confront for s100 years. i think he is putting the pieces together i thought the decision to add taxis in new york city tells you a lot. it is good for the taxi industry it is great for uber it shows you that what uber wants to be and what it is, it is a travel platform it is a travel platform where i think people are going to be traveling more it is a commuting platform where i believe if the world gets safer, in terms of medical situations, it is going to be used more. he's done it carefully we like it >> those are big names glad we tackled both of them with you, morris we we love it every time. thanks for coming on.
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>> thanks for having me. appreciate it. >> thanks. bitcoin is on pace to end march in the green, helping crypto expose names like coinbase we have more after the break don't go away. [sfx: street ambience] ♪ ["fly me to the moon"] ♪ ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond. to the moon? in other words... etoro.the power of social investing. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first.
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anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile. bitcoin hitting 48k this week mostly holding on to those gains.
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watching this re30bound across growth stocks and more kate >> highest level since december this week. the initial spike over the weekend was driven by short covering once bitcoin crossed $45,000, traders needed to buy more crypto to close out some of the positions. the fact the market is holding on to these levels is key. it is really seen as a positive sign of demand and improving sentiment. the trading desk at genesis tells me they're seeing a more bullish tone lately and the derivative markets were flashing signs of that this week. bitcoin futures interest hit the highest level so far this year you have the fear and greed index, another measure of sentiment, around 60 out of 100, double where it was last month there's been signs of more institutional demand after goldman sachs made its first otc trade. cohen is getting into the markets. there is also continued support from a new bitcoin whale tera is building up preserves
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for a stable coin or cryptocurrency pegged to the price of a dollar. the project is buying another $135 million worth of crypto this week. unlike other stable coins, though, guys, this is partially backed by bitcoin instead of dollars, or short-term debt. the ultimate goal, according to the founder, is to build up $10 billion worth of reserves. we'll see how u.s. regulators feel about that. either way, these so-called whales adding to their balance sheeting and holding for the long term is seen as a bullish sign for crypto markets. in addition to the demand from tera, terra adding to the reserves the ceo saying it closed a $205 million bitcoin klcollateralized loan to get more. >> kate, thanks. kate rooney. ecommerce names this
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morning. the real-real is downgraded to neutral on doubts surrounding a quick path etsy we have the analyst behind that call we're holding 4,0.60 last to close above that level january 14th this is the new world of work. each day looks different than the last. but whatever work becomes, the servicenow platform will make it just, flow. whether it's finding new ways to help you serve your customers, orchestrating a safe return to the office... wait. an office? what's an office? ...or solving a workplace challenge that's yet to come. wherever the new world of work takes your business, the world works with servicenow.
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let's get a gut check. barclays upgrading fortinet from
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equal weight they're bracing for more cyber threats ahead, arguing their geographic and customer diversity are assets in the environment. for more on the call, check out cnbcpro. up next, the call on etsy, in a moment. ♪ ♪ ♪ ♪ ♪
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♪ welcome back loop capital downgrading etsy this morning from a buy to a hold, dropping the price target to 140 which is just a couple of
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bucks shy of where it's trading at the moment and saying they expect reduced consumer spending rebound to affect the stock. the analyst behind that call joins us now laura, this came up on the recent earnings call, right? where etsy said yes, inflation is hitting us. people returning to brick and mortar stores is hitting us and people not buying -- not buying new homes with interest rate rising is going to hurt us because people won't be buying furnishings, but are there things like weddings, right? that bolster this stock? >> so it did come up on the earnings call, but the earnings call was a little over a month ago and we think things have gotten worse since then on the inflation geopolitical distraction front, also we're lapping the checks which are not showing up this year, but the shift towards events and away
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from home could potentially pull consumers away from their screens, for one thing, but also those home-related buys are pretty big ticket buys so as consumer looks to buy a pair of shoes and not a chair that means lower revenues which means lower fees for etsy. what should etsy do strategically at a time like this, how can they position themselves for a rebound they've made some strategic acquisitions for the last few years. first on the music side and then brazil and then d-pop in the uk. they're doing a lot of the right things with their search engine performing better and the covid era when traffic was up. our call is not that they're making mistakes. it's then v environment in whic they're operating is not good
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for business and from consumer spending in general and because their advertising is online and just seeing outside pressures that there's not much they can do about >> moving higher is an understatement in reading your note this morning, laura, i had to do a double take in the figures you are hearing about in digital marketing inflation. can that be right? can it be 20% to 40% >> it can certainly be 20% to 40% per impression and that's how a lot of this pricing works, if you were consumers shopping online and there's inflation in digital advertising. we are hearing it from multiple companies and one of the things that's unique about me is that i cover wholesalers and i cover brick and mortar, and i cover omni channel and i cover e-commerce and across that very broad playing field everyone is having 20% plus digital advertising increases. >> laura, thank you, from loop capital. >> top gainers on the nasdaq,
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-had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. at least one more thing before we go we had talked about the potential for more antitrust regulation for big tech, but
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what about buybacks? are they safe? apple,or abel, microsoft and ibm have been some of the biggest buyback spenders over the decade and massachusetts senator elizabeth warren had strong words about the practice this morning on "squawk box." we have to remember that the executives are the ones who have much more control over this, so putting somewhat more restrictions on them when they can sell makes sense under those circumstances. also we'd like to see these companies put more money into rnd and if the companies say they don't have use for the money, then fine send it out if dividends to our shareholders you don't have to do it in buybacks and this is another distortion because of a tax system that doesn't work >> carl, interesting because different types of companies get affected differently by that >> it's true, and b of a had data this morning that buybacks looking for the lowest weekly level in about 11 month, some questions about how strong
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buybacks are going to be in q1, jon. interestingly, you look at the market action today and it is across sectors is the commentary that somehow the russia/ukraine situation gets solved. winners today, airline, boeing, visa, looking at cross-border travel and spending, jon, and the losers, defense, cyber name, palo alto is in there and then ag, deere, mosaic are on the hope, at least that we're not going to wind up with a continued commodity shock we're suv suffering from >> my eyebrow is raised because one of the winners is robinhood up about 24% at the moment and can't wait for that meme stock rally and perhaps not a dollar short and we will see how it ends up, but they are both adding some capabilities for extended trading and probably benefiting a bit from the crypto boost we talked about earlier.
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>> i was going to say, jon, what about the meme names crypto has gone green for the year and robinhood it's like last spring's reddit's >> pick your strategy and stick to it. some days you're right, some days you're wrong, but hey, we'll see where it ends up. >> as for tomorrow, adp as we get closer and closer for the jobs number on friday. let's get to the half. carl, thanks so much welcome to "the halftime report." the big bounceback for stocks and how long they can last and we will discuss and debate that with the investment committee. joining me for the hour today, stephanie link, josh brown, jim lebenthal, pete najarian, co-founder of let's check the markets, there is green all around. there you go s&p opened today about 4600 and the dow is above 35,000, the nasdaq run rolls on above 176 over


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