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tv   Tech Check  CNBC  April 25, 2022 11:00am-12:00pm EDT

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the deal marks the first comes under another deal with private jet service jsx. spacex has been testing the service with delta as well starlink is spacex's network of 2,000 broadband satellites the service is expected to be free for passengers of hawaiian next year. that's going to do it for us here on sidewalk on the street check tech starts now. welcome to check tech. today, tech stocks already, the nasdaq on a three-week losing streak, down more than 20% from its november highs where's the bottom twitter reportedly nears a deal to sell itself to elon musk. the very latest on that developing story, and why twitter is trending. and later apple amazon microsoft set up for a huge week of trade
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earnings john, welcome back by the way. >> thank you, and we've got to start, of course, with twitter, shares are up, almost 3% on news that a deal we lon musk might be close, but hey, this might be a case of be careful what you wish for, julia, right, because he's got to make some interesting leverage moves to make this work. >> yes, interesting indeed, and of course there's so many implications toward the rest of elon musk's company. but just honing in on twitter right now. shares are up nearly 3% on those reports that the company is nearing a deal we lon musk, a source close to the situation tells me that the board met yesterday to discuss musk's offer, now that he has secured $$46.5 billion in sentencing, and then twitter's reportedly negotiated with musk late yesterday into the night, a deal between the company and musk could be announced as soon as today according to multiple media reports. but there's still plenty of
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unknowns if twitter secures a go shop provision, that would allow them to solicit bids from other potential buyers, once a deal is signed and unclear what the breakup fee would be if a deal falls apart. though a deal is far from certain, the seriousness of these negotiations is a meaningful milestone the bush analyst dan ives says, quote, the street will read this news today as the beginning of the end for twitter as a public company, with musk likely now on a path to acquire the company, unless, unless a second bidder comes into the mix so now we are waiting for more from the company there's been no comment from twitter yet this morning but with twitter's earnings coming on thursday, and earnings per share expected to decline by 83%, the board could be rushing to announce something before that thursday earnings report. john >> yeah, julia you know, it seems like there's the potential, dee, for enormous value destruction here, however you feel about whether elon musk
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should own this or shouldn't, and whether his vision is right for the company or not a big part of how he's planning to finance this is leveraging tesla shares, and if tesla does what netflix did last week, or even drops significantly, and people start worrying about that, you know, this move and this premium that he's now willing to pay for twitter might go down looking risky. >> i did do a double take, john, you just said value destruction. isn't that what twitter's existing board and executives have done already? that's why this deal is happening. i understand what you're saying in the offshoot for tesla shares but we got those earnings last week, and he's really firing on all cylinders, julia in terms of the opportunity, i know now we can start to talk about this, what can they actually do? that is a complicated question, but what have they done? i mean, this has been a stock that has gone nowhere since its
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ipl? >> this is a stock that's gone nowhere. but what's been really interesting is in the past year they've rolled a bunch of changes and also put out this road map to continue to it rate, and expand what twitter is, what twitter does, how many people might rant to use the platform, and specifically this subscription service that they've been slowly getting out there. that's something that elon musk has said he's very interested in, he's been very critical of twitter's ad supported model and of course the vast, vast majority of its revenues from advertising. there's a question of what a post-musk twitter would look like to your first point, john, of what's musk going to do with his company. sources said to me it will be a dog catches car situation for musk, or it could be, in terms of him not realizing just how challenging this company is, not just in terms of the business, but the regulatory oversight, the criticism, and really, deirdre, becoming a lightning rod for all concerted criticism
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for the very social platforms. >> twitter's gotten real cost, it's not free to run the servers to shoot that information around the world. you know, there's also, whether you like content moderation or not, you can't just stop doing it all together. is he going to sack most of the work force >> he could. >> in order to, you know, cut the reliance on advertising, while the subscription business spins up i mean, it's one thing to talk about this stuff, bs another thing to actually do it when you've also got debt to service. >> yeah, i mean, bringing it private, julia, he has the leeway to do that, easier ta private company than a public company. good points from john. what does that look like what are the banks looking for in terms of getting their money back in this deal? >> yeah, and certainly you have to wonder what twitter could look like, or even if it could operate without ads because those subscription services are so nascent also you have to look before big picture, "d," at the implications of what this could
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mean for the other social players if this deal does get done is there less republican support for reform of section 230? and then maybe that's a win for meta >> it's a great point, whatever elon musk does over at twitter, if he's able to, will have implications for the broader space, and content moderation. julia, thank you, we're going to bring in the cnbc contributor and editor in chief of the verge. if you've been listening to our conversation, why don't we just continue that, what do you think is a more likely outcome here, value destruction, or value creation >> destruction, it's -- there's no other choice, the exposure to tesla is huge, both financial and regulatory every other buyer that has ever looked at twitter has said, huh, that seems like a problem i don't want to solve. disney, it's apple, you name it, salesforce, they've all looked at it. i don't think i can solve that problem. it will put my core business at risk leveraging that against -- creates a whole new level of risk and then when tesla has to
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expand in china, when it tries to expand in india, even farther in germany, europe 'largest car market, ylan will be personally exposed to all of the content regulation problems that all of those countries impose on every service that tries to operate. i think that is just, an enormous amount of risk. >> but on the flipside, couldn't he use twitter to actually help those aims in a place like china, right, if he opens up twitter for anything, and he stops labeling certain accounts as state affiliated, lets everyone on, couldn't that kind of help his case i know you say other businesses have taken a look at twitter elon musk isn't a business, he is a highly unusual, ambitious vinl who is not trying to make money out of this transaction, he says that it's not economic in his aims. >> yeah, i agree with that i think ylan is an unusual individual there's a good question for all of the companies he runs to ask, which is how scaleable is elon musk this is a man who sleeps on the floor of the factories when production goes up on new cars
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at some point he's going to be running too many things for that to be a viable management strategy, and twitter is a particularly distracting company. what i will say about china in particular is that american companies, large american institutions, that we think of as upholding our values, go to china and cave they cave over and over again. apple caves. tesla has caved. the nba has caved. there's just no way you can run into china, and say we're not going to do it your way, and not see yourself kicked out, or worse, punished and broken up. we've seen that with other big companies in china chinese companies that get too big. the government there breaks them up to recuse their power against the state itself that is not great. that's not the american way. but it feels like you have to cave if you want to do business in that market and for tesla in particular, that's a market they have to win. >> yeah, and i appreciate that elon musk says he's not looking to make money off of twitter, but i think we're entering a market, maybe the erequest is,
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how much money is he looking to lose, you know, dealing with twitter, both running it, right, in a way, where he's looking to perhaps dismantle its revenue model and then as you mentioned, the cost to him reputationly that could trickle over to some of his other ventures. i'm going to be interested in seeing, hopefully we get to see what the breakup fees look like for this deal. there's the potential that for various reasons, various parties might not want it to go through. >> yeah, i think that's right. i also, just to make this as simple as possible, when you actually pay money for something, you want it to be good, and your expectations are way higher than for any free service if twitter is struggling to figure how the to add 100 million users. that it's promised its existing board. in a free model, and ylan says
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you have to pay for this he's got to make it a better service. and making it a better service kind of looks like more content moderation it looks like you're going to show up, it's going to recommend things to you that you are going to like, it's going to show you people that you like, and you're going to have pleasant conversations, because your expectations for something you pay for are high it's not going to look like twitter warfare, which no one in their right mind should pay for. that dichotomy, that dynamic, something nobody has figured out to solve y e he's got to deliver a product people want to pay for. >> that's if he wants to make money. he's saying he couldn't want to make money maybe he doesn't do that i've been off for a week i come back, it sure looks like the math here has changed a bit. i mean, the markets are down quite a bit from what they were, but elon musk is still at least ostensibly willing to pay the same price for twitter i bet you that had something to
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do with why the board is listening closer now. >> yeah, i mean, he seems to be very interested in it. can any one of us predict what elon musk will or won't do, or what deals will not close, or what funding is actually not secured? but even if you don't want to make money, you have to have people on it to make it valuable right, the value of twitter is that so many different kinds of people use it. if you're going to ask all those people to pay. you've got to deliver a product that's worth paying for. you buy twitter and you're worried about losing money, that's great you buy twitter and everyone leaves, that is the worst case scenario and and i think that's when the banks start to get jittery about what they're actually funding here and if they're going to get their money back. >> or it's a more efficient business why do we think that elon musk is going to be the one to run this what gave you that indication? why doesn't he bring jack dorsey back once elliott's out of the picture? >> i think that's a question for the shareholders and the board of block, right, they didn't
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like that jack was a duel-time ceo. ylan managed to escape the scrutiny of having so many companies to run but who are his operators, the line of managers below elon, aside from glen shotwell at spacex, doing an amazing job you don't see those operators at those other companies, to scale elon musk, you have to identify. here are the tenets of all of my companies, including twitter that is one step towards reducing the risk for tesla, reducing the risk for the boring company, towards reducing the risk for spacex. ultimately the man is addicted to twitter he loves it. that's why he wants to buy it. and he's going to spend his time being distracted by it, and its endless content moderation controversies, because they are addictive. that is a distraction for everyone else. >> what did we call it last week, a bigger yacht than jeff
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bezos has. shares are up 3.5% getting closer to the 54.20 level. nilay, thanks for breaking it down for us this morning we continue to watch with reports that a deal could happen as soon as today. >> watching it is more entertaining than twitter itself twitter is trending this morning, but investors are preparing for a big week of big tech earnings. apple, amazon, microsoft, all set to report this week, meta-and apple shortly thereafter, and given what we saw from netflix, this could be quite a week goldman sachs, as eric sheridan joins us now eric, welcome. so given what we saw from netflix last week, i mean, granted, it's in its own sort of category compared to much larger tech companies that are doing different things but how much risk is there out there for these stocks to find different valuations >> well, i think what we're going to be watching for is
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narr narrative shifts i think what you saw with netflix was a second quarter in a row where growth expectations, especially forward growth expectations came in much lower than expected. we've been talking a lot since the fall about the theme of pandemic -- post-pandemic normalization. and netflix still squarely falls in that camp, where, no offense to the management team, and i think they continue to struggle for how much of their forward growth was pulled forward during the pandemic, and now continuing to rely on growth and cost investments against what that growth is going forward over the next two years you contrast that with snap, where there was very low expectations, talk about strength in direct response, digital advertising, they beat on users guided users above the street. against relatively low expectations, i think this is a game where you look at this upcoming week, and it's what's in stocks, how the numbers line up against expectations, and you'll see idiosyncratic responses accordingly, i think, as we go through this week. >> how much do you expect we're
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going to hear about europe, and the economic impact of the tragic war that's unfolding in ukraine right now, the impact on sentiment, and the impact on demand >> snap last week called out a pause in brand advertising for the 10 or 11 days around the beginning of the war and that that actually was a global impact on advertising we're going to be listening to the alphabets and the metas of the world and the pint rests of the world to see if they saw something similar. it's snapped back to that 11 day period into the second half of march. snap called out 30% growth for the first three weeks of april, not a recession, and certainly not advertising falling off a cliff, like some investors fear. but generally i would say there's three concerns among investors looking out, number one, the low-income consumer in the u.s., and whether that would trigger a recession in the u.s two, energy prices in the land
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war conflict in russia, ukraine and what that might mean to the european consumer and then obviously out of china you've got covid zero as a policy and how that might impact global supply chains, we're listening to what the companies say on all three of those impacts going forward. >> eric, as a group, big tech has propped up the market, but this year, you're seeing divergence within these names and, you know, potentially, some of them giving up their leadership they've accounted for about half of the s&p's decline this year do you think that at the end of the year they will have given up material leadership in this market who takes their place >> that, i'm not as aware of you know, i think within the group, what i think you want to look for is thematic elements you want to invest behind. irrespective of the economic backdrop we still like cloud computing as a firm, that's amazon, alphabet, the number one and 3 player in cloud computing right now.
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we like exposure to direct response advertising that, to us is snap. it's instagram within meta, and it's google search within alphabet i would be aligning where i think i can get returns against broad thematic elements. we're going to have recession exposure if we go into a global recession. where might we see secular growth themes being able to outrun the macro impacts. >> eric, do you think there's reason to be cautious on alphabet a note this morning from bank of measuring, possible equity writedowns the youtube, you know, the youtube complex, which has been so successful, but we saw, as you've mentioned, the effect on the ukraine war on snap, and we'll probably see it on meta. >> yeah. so while really we think alphabet is going to be a tale of two quarters, we called out a lot of strength in search, you're continuing to see recovery in some of those pandemic impacted industries like travel, and local, and you
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still have supply constraints in auto, which is a big search advertiser you look over at youtube, and they're facing tougher comps, 3.5% below the street on -- in q1 and the full year on youtube. the brand advertising impact that snap called out could have an impact on youtube we have a broad theme that short form video, the rise of tiktok and reels and spotlight and short form video impacts are impacting longer form video from industry conversations we've had. so we think you're going to see very strong search, weaker youtube, and it could be a tale of two quarters. >> eric, finally, do you have one particular earnings report that you're especially interested in this week? i'm interested in amazon, because of the e-commerce and retail piece the cloud piece, and then the labor. and logistics piece on all of the both inflationary -- you know, labor, and energy signals
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that we could get from that. >> yeah, no, i think you hit the nail on the head, john, i think if you think about it, we're going to get enough data on consumer spending, globally x china, we're going to get an update on cloud computing trends, advertising trends people forget that amazon is the third largest digital advertising company outside of china. you're going to get media consumption read-throughs for amazon prime instant video and then you go below the revenue line and we'll hear about labor, the jobs economy, we're going to hear about oil as an input cost, we're going to hear about fulfillment and logistics where the cfoless porter talked about margins, median long term, elements we'll be watching for. >> and we'll be all over here on cnbc eric sheridan from doldman sax, thank you. >> i just mentioned this, but it's worth underscoring, despite fang's dominance the past decades, the tech names are what is weighing on it the most this year the six big names made up half the benchmark.
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year to date declines through thursday the only stock that has outperformed in 2022 is apple, but only by a hair, the stack is down more than 1% this morning let's talk of an investor about it mark asset management ceo and managing partner morris mark joins us right now what are you looking for this week of huge earnings, how are you positioned >> we have a bilateral attitude. we love the companies, we're really concerned about what they say about outlook. not because the businesses aren't good, and not because the reported numbers are going to be -- but because of the war in ukraine, because now the prospects of the chinese economy imploding, and because the fact that the fed hasn't gotten started yet. and we're trying to balance these considerations, in how we're looking at our investments. >> so you like them, morris, which do you like more than others we've seen this divergence, they've acted as a group the
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last few years netflix and meta, which ones do you like, or all of them >> i think in a way almost all of them. as investors, remember, we've been hedged, a good part of the year, we're partially hedged at this point we don't think inflation is yet reflected in the buy market sufficiently the outlook for the economy is not bad, our economy is good but the outlook for the world is more questionable. but conversely, i don't think you want to get one important thing that the most important long-term secular trend in the world economy is digitalization. and the companies that are structured to take advantage of that, whether they're consumer companies like amazon, whether they're information businesses like alphabet, or whether they're a consumer products company, like apple, whether they are a reading chip designer or manufacturer like nvidia, those are the long-term-winners
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and they've got the cash flow, they've got the profits, and they have the management. >> morris, meta-and now netflix have just been absolutely hammered so far this year on earnings reports what is the investor lesson to take away from that? is there value there, or is there potentially more carnage to come? >> you've got to draw a distinction between the two. we don't think, based on what we learned, and based on the fact that you're looking at this aztec investors, and we look at a lot of these businesses as being parts of broader industries netflix is in the entertainment industry they use streaming, but you're in the entertainment industry and they haven't developed enough tv franchises, and/or any significant movie franchises, and they've got more competition in entertainment so we don't -- we're not shorted here i think that would be too smart.
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okay, because these are not stupid people. but we're not buyers metais harder. metahas got some great businesses you have facebook, probably a less attractive sec tar trend, i think the way we look at it, we don't have to own it yet but that's not -- i don't want to draw any negative inference from that comment. we have a lot of names we own. we're very cautious as investors, but we're investors, we want to be investors in apple and things like that. >> morris, i wonder what your thoughts are on -- there have been a lot of spending money chasing user growth happening, not just in media, but in along this digitization trend in general. and we see netflix, perhaps, being a cautionary tale now in that we see, you know, cnn plus getting shut down because, you know -- not willing to spend the
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money to chase user growth in this environment is that a signal to investors overall about the way this might be headed? >> yeah, i think you've got to look for management, and good management, and i think a combination in john malone and david -- are very intriguing i've got a lot of legacy businesses, but those businesses aren't going away. so i think you had to judge management by what they do cnn plus was a gimme had to do it i hope that answers that question but i think right now, we're looking at balance sheets. we're looking at profits, we're looking at cash flow we're looking at the prospects of the business. and that's what we want to focus on and we want to be mindful of a market environment that doesn't show that any near term evidence of turning up -- >> dwyeah, so morris on that broader environment in capital cloiks, you've seen some hedge funds increase their cash positions as the macro environment looks tougher, what are you doing, have you or are
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you increasing that cash position >> we did. we just haven't used it yet. we try to look at this really hard we put some hedges in. and they have helped and we don't want to give up on great names, and we want to be very mindful there are other names out there, that we no longer own, and at some point we'd like to own so we're trying to stay balanced we don't want to give up on the great names. i think that would be too smart. >> okay. that long-term view. morris mark, talk to you again soon. >> thank you it's not just u.s. equities getting hit this morning, the dow and s&p down about 1%. chinese tech feeling some pain as well. we'll have that after the break. stay with us tech check, just getting started.
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. gut check on chinese tech names, biggest slump since february on potential of renewed
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lock downs, shen zen composite down nearly 6.5% overnight, tech names are not escaping the carnage, ali baba, 86% of analysts are calling baba a buy, and an average price target of $158 per share there could be more upside ahead, the eternal problem, john, when to time that for chinese stocks. >> yeah. if only everyone knew. time now, though, for a news update morgan brennan has it. >> well, here's what's happening at this hour crude oil prices are also getting hit by rising covid concerns in china. beijing shoppers cleared shelves as mass covid testing began for more than 3 million of the city's residents which just in the last hour, u.s. energy secretary jennifer granholm telling cnbc that gas and oil production is rising, offsetting
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russian output in the wake of its invasion in ukraine. coca-cola shares, helping fuel the earnings beat however the stock has no gone negative as the broader market drops about a percent. and the chevy corvette is going electric gm's president telling our phil lebeau, a plug-in hybrid version of the car will go on sale next year and that a fully electric vet is on the way. fans of traditional corvettes with internal combustion engines need not worry those models will continue to be produced go to cnbc.com for more details and with that full interview with the gm president. nvidia one of the biggest laggers on the s&p for april now time to put your money to work in the name we will discuss after the break. stay with us
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welcome back to "techcheck." markets are lower at the moment as an eclectic group leads the nasdaq lower this morning, netflix, asml top laggers, bitcoin hitting its lowest level since march. and tech stocks overall under pressure with the wider selloff, the ndx down 10% since the start of april senior market commentator mark santoli joins us to break down what he is calling a churned correction mike, what's that? >> well, we've been churning for several months right now in fact, the is s&p 500, you go back about ten months to get to levels we first reached where we sit today. and the main pressure point has
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continued to be the large tech stocks, growth stocks, you can see that in the relative performance of the nasdaq 100 against the s&p 500. if you did the equal weighted s&p 500, excluding technology, used to be an etf, everything but tuck, they are outkofrms on a year to date basis in the last few days it's been more comprehensive what to make of the fact that the nasdaq 100 is outperforming today. as a matter of fact, you look at the arc-type stocks. what that can mean is hedge funds are pulling in all kinds of bets long and short you've been short, the weakest stuff in the market, the megacap techs and the speculative techs, lifting those positions as long as as well as maybe selling stuff that's held up better. that's one explanation for the near term. it's fascinating, though, to see the results from the likes of alphabet and apple apple has held up much better. alphabet looks like it's rolling a little bit down, 20% from its highs.
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got to bid today to say that maybe the selling has been overdone. >> there's a bearings piece this morning, request whether apple was the last faang standing. you call it churn, this market has been so picked over, right, where does the next rotation lie? i mean, even with defensives looking expensive. >> it's very tough to say. in terms of there's not that much in the way of defensible high ground at the moment, and i think that, you know, that's often the way it goes with the correction look, you can look at the real estate sector, xlre, those things have held up much better if you think it's just been a technical pullback in energy, and things like mining stocks, fine, they still are uptrends. but in general, sometimes you actually need things to kind of flush more broadly, more comprehensively, and then you say just where is absolute value on a multi-year basis, never mind trying to outperform for the next three months? >> mike santoli, thanks for the breakdown. keep an eye on amd
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well, the semiconductor etf
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sitting new year to date lows following below the march 14th levels, nvidia, just to call out one name, down more than 40% since november how should you think of that opportunity in the space here to tis cuss, city analyst christopher danely welcome, we've got a couple of big names coming up this week, intel and qualcomm you said you're hearing from inve investors bullish on them, but you're still cautious, why given they're well off their 52-week highs. >> it comes down to secular head winds. both o them are losing market share. qualcomm to a taiwanese competitor, and intel to an amd. we've sen slowdowns in the asset market which is qualcomm's largest market, and pc market, which is intel's largest market. in particular on intel we're expecting them to guide below the street
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they'll report thursday after the close. >> so at what point, though, given they're losing share, do you see value, based on the fact that they've already been punished, and that if their strategy is right at this point, they could go up from here >> glad you asked that question. we get that question a lot but we have this 15 rules of semiconductor investing. the number one rule is don't ever buy or sell based on valuation. even though a stock could quote s sln unquote look cheap, there's no real reason to buy it for intel, it is market share and until they get their manufacturing fixed, it's going to be very tough for that stock to work. on the qualcomm side, it's a little more complicated. they are losing some share assessment, and you also have this sort of lull in between upgrade cycles the 5g upgrade cycle started a couple of years ago, and then in between these upgrade cycles, the stock has a little bit of trouble. so we're waiting frlt next upgrade cycle, which does sound
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like it's pretty far away. that's been our call on qualcomm last several years the upgrade cycle is in effect. >> christopherings we've got three of the largest cloud providers, amazon, microsoft, and google reporting this week what could you hear from them that might make you feel better about some of the names, the chip names, that service their operations or on the flipside, making more cautious on them >> definitely, so when it comes down to cloud, it's all about capex. or how much they're spending, we're pretty positive on the cap xl if they were to say we're going to spend even more money building out the infrastructure, that would be positive on the other side, there's the enterprise if you look at the data center market in semiconductors, it's half cloud, like you mentioned, amazon spending money. enterprise, ie large corporations, large corporations talk about spending more money on infrastructure, that would be another positive for semiconductors. >> you also said you're
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concerned about the pc market, but where in the pc market, specifically, is it more the consumer end, versus enterprise? with some workers starting to return to offices, and usually the chip maker has pc exposure, they also have exposure in data center, maybe in iot, other areas. who do you think is most exposed to the area that you're most concerned about in pcs >> yeah, it would be the consumer if you look at what's driven the pc strength over the last couple years, it's been work from home, school from home, knock on wood, we're all going back to work, thankfully our kids are going back to school so we look for -- to slow thatsh mostly on the consumer side, and we published a series notes, if you look at where laptops or desktop computers are being built, it's not over here in the united states, it's in china and taiwan there's certain companies that make the laptops a report monthly numbers and for the last three months in a row they've missed those forecasts that's why our growing caution
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is on the pc space as you said on the enterprise, that's why a company is driven why companies go back to work. we expect strength there but given that the pc space has grown 10% year over year for the last two years, and you normally would be kind of a flattish growth, we're looking for reversal eventually in pcs that's another reason. >> and finally, outside of pcs, looking at some growth areas, particularly things like autos, something that both qualcomm, which you mentioned before, in the wireless context, has been growing the business in, and marvel has been very focused there as well. how important is the growth rate outside of some of these companies traditional bases going to be? because i guess that's probably an argument that the qualcomm bulls throw at you when you talk about media tech. >> definitely. now, auto is less than 10% of qualcomm it's not a very big driver for that stock they're still mostly driven by the hand set space
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that's where you focus on them on the marvel side, they're focused on enterprise. data setter. you know, autos, strangely enough, it's only about 12 or 13% of the semiconductor market. the biggest market for some of these, shockingly, is still pcs, pcs are about 30% of semis we're very positive on the trends in the fundamentals in the automotive market, there's a ton of shortages out there we don't think those are going to get fixed until next year at the earliest, but really for qualcomm, it's not necessarily a big driver for them. the big automotive oriented semiconductor companies would be on on set, texas instruments, nxp is one of the larger exposed companies there. >> all right, christopher danely, thank you. now, it might be spring, but wolf research says buy snow this morning, initiating the cloud data company snowflake with a
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buy. $250 price target, find out why they see the stock rallying more than 40%, that's cnbc.com/pro.
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let's get a gut check on
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bitcoin, the cryptocurrency hitting its lowest level investors are -- lower moves meant to trade independently of the market but that relationship growing more intertwined than in a while. the two month rolling correlation between bit down and the s&p increase, to .53 on friday, that's the highest level since late january according to dow jones market data. not just bitcoin, other digit currencies are trading lower this will come as no surprise to you. but the dollar's climbing. proving its dominance as a safe haven asset. bitcoin not quite there yet. though should note. it's been hovering around that 40 k mark for months now. >> the s&p, about session low as it was around one and a little more percent down than when we start it had hour. i thought these were supposed to be inflation hedges, and
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inflation is pretty high, so we'll see where bitcoin and others go. i know jack dorsey is rooting for it. >> as you mentioned, john, the nasdaq down .8 of 1% the relative dow down more tha0 points we're going to be back in just a moment stay with us
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welcome back, let's take a look at doordash for today's edition of over valued, undervalued. interesting note from morgan stanley initiating the stock with an equal rate rating, restaurant supply business and the street likes it today too. the stock's trade at about 90 bucks a share, the average target's around 160. but on the over valued side, morgan stanley just sympathies it's expensive, already trading at five times 2023 revenue, and it's facing a lot of the same headwind as a lot of pandemic stocks, including intense competition and the potential for tough year-over-year comps the stock's been cut in half since the start of november. it seems operationally to be
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continuing to do better than some competitors. >> some competitors, i was going to say, john, if you like uber and much of the street is positive on uber, then you got to love doordash it is more expensive on almost any valuation metric i'm looking at price to sales ratio, that's because it's delivering in a lot of places where uber just isn't yet. uber is supposed to be sort of hedged, the pandemic and a post-pandemic darling, but you look at profitability, you look at market share, you look at going into new areas like logistics, tony shoe at doordash is doing those things. maybe that justifies that higher valuation, but certainly it has been taken down. notable how much it's been taken down and that it's still valued much higher than some of the other names in the space. >> it's mostly the branching into new areas that i'm curious about. you know, when the double dash are people adding on another item when they already have ordered something, how's convenience working? are people getting the ice cream, and now they're offering
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packages of some of the best regional foods from other places they'll ship it to you, you know, frozen in dry ice. high dollar amounts there. are people taking those deals? are they signing up the right restaurants? if so that's a different business than uber has been in with uber eats, and it could be higher margin. >> it could be higher margin they're putting a lot of money behind it, right dash marts, that is a big capital expenditure for the company that makes it more of a logistics company, less a three peat delivery company. interesting to see how that turns out. if you're looking for the latest market action as it happens, follow and subscribe to our podcast, you can listen anytime anywhere wherever you download ecchk"ts "th ec is back in just a moment more cities,in many you get up to 10x the speed at no extra cost. plus six premium entertainment subscriptions, included! like disney+, music, gaming, and more! (mom) delightful. (vo) saving you over $350 dollars a year. and for a limited time get a 5g phone on us!
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the past the free offering could prompt competitors to do the same thing. another industry elon is trying to disrupt a totally different industry and story and on starlink. so when we question how much musk can take on, well, a lot. >> once again, he's not interested in making money, at least in this deal you know, he seems to be all about free communication, and, you know, i love communication eventually, though, one imagines there's going to be a business model here, either hawaiian is paying for it or they're bundling, i don't know i'm eager to hear how it's going to work. i will venture to guess, though, dee, that others will not be giving away internet access for free to airlines nobody else is going to do that. >> well, maybe he has some grand plan to monetize in the future tesla was unprofitable for a long time, remember john anyway, we've got the markets still lower, a big week of earnings we better buckle up, right
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i >> big indeed. we were talking about how interesting amazon is going to be, also intel and qualcomm, both of those in sort of value territory, and we'll see what they have to say about progress in their businesses. intel trying to argue for a foundry strategy, qualcomm expanding beyond mobile, so it's going to be very interesting and that will do it for "tech check. "halftime report" starts now john, thanks, welcome to "halftime report," i'm scott walker, front and center, stocks on the edge. fed fears, china, covid all weighing on your money are the lows in jeopardy the big question, we'll discuss and debate that with the investment committee joining me for the hour, britain talkington, also with us an stay sha omorosa, check the market, 12 noon at the east, red across the board. dow's down more than 400, s&p off 1.5, 63 points, nasdaq not so much. it's down 100 point s, rates easing off a

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