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tv   Tech Check  CNBC  May 12, 2022 11:00am-12:01pm EDT

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up to. >> phil lebeau, thank you. give you a check on the nasdaq right now, which is currently trading around 1.2%. we were down 2.3%, so you can see right there what a stark move we've had this morning, just in that composite that will do it for "squawk on the street." "techcheck" starts now good thursday morning, welcome to "techcheck," i'm carl quintanilla, with deirdre bosa and jon fortt. bit bitcoin touches 25 k this hour, a deep dive on alphabet you're not going to want to miss dee's exclusive with ceo sundar pichai recession risk, whether the economy that hass seen peak inflation. we'll start with the selling in tech and crypto, strange
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volatile day today, the nasdaq was down more than a percent and a half up by more than a percent. mean stocks, game stop up 20%. amc up 14, bit down trying to climb out of a hole. regaining 30 k with other cryptos still down to discuss, the senior markets -- >> hey, jon, you know, that litany you just went through represents a lot of, i think, psychological round number levels that were breached in the downside and it's been a one-way market, at least tactically, the fastest moving trader said does it make sense to get further greedy on the down side. s&p gets the -- nasdaq to a 30% decline, you have amc going to the single digit prices at game stop below 100, and all of these things that seemed like, you know, were gathering up the extremes, i don't think you want to necessarily infer too much
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more from the action than that, kept it has been a shutout being pitched by the bears, and so it seems hard to believe it's going to go on for too much longer in a straight line. but a little bit of relief, at least, for the walk. >> adding to that relief, yellen just now in front of the house saying they don't see the stable coin blowup as systemic, at least not yet. >> i see these in the category of the absence of new negatives. right, none of that stuff, to me, was priced in the market we haven't priced the 75 basis point move we haven't priced the idea that the stable coin meltdown is actually going to impair the financial system in any way, but at least here, that, in fact, we don't have to, perhaps immediately worry about those things, when the market is stretched this far, and people have already been really focused much more on the risk than the reward there you have a little bit of relief in the short term. >> mike, we're going to talk more about this later, but i
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wanted to get your take, the rebound today is so curious. we're seeing the speculative areas of tech come back, and you have sort of two mega cap names, apple and microsoft continuing to underperform after apple's big drop yesterday what is that telling us? >> well, it's kind of the first in, first out, the speculative parts of the market were first into this downturn they actually have taken a ton of punishment. they are the most heavily shorted areas. the lagging indicators have been especially apple, amazon to a lesser degree but it's kind of been hovering more or less in its, you know, pandemic level range, and, you know, there's a give up trade in some of the safe harbors that's the way i would view it right there. yes, of course short coverings involved short coverings always involved when the market bounces off of a steep decline. but that's not always, you know, the full story, it gathers up people who have been underinvested, who have been waiting for a chance, and so i think that's kind of the push/pull of the moment we're in
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right now. >> mike, how important is the volume when things bounce like this, and how long the bounces hold >> all of it's important, jon, we are in the mode of really kind of like reading the entrails of every move to figure out exactly what goes on and whether you can believe it i don't think absolute volumes matter that much at this point you want to see there be -- ideally if we get a one-day rally, you want to see just how broadly inclusive the rally was. you know, is 90% of the volume to the upside, we had a 90% down day a couple times in the past week or so that's the kind of stuff we look for. it's way too early, after a 30% decline in the nasdaq, after what's gone on in crypto, to say that, you know, one bounce is going to be a thing, it's a high burden of proof that faces the market, even if the risk-reward is improved as prices have come down. >> absolutely, mike, thanks as always now as we discuss, some big tech does continue to be under pressure today, despite the
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rebound in the broader sector over the last few months it had held up better than some of these more speculative areas, this week, we continue to see names like apple and microsoft, underperform, against that backdrop, alphabet had held its first in-person io developers conference in three years in mountain view yesterday. we were there. the audience got hardware teases, like a pixel watch, and plans for a google glass access sor. announced developments in artificial intelligence in breakthroughs in language processing that return to normalcy and the energy if the amphitheater, it wasn't in contrast with the markets and the economy. the nasdaq, lower by another 3%. that's where i started i asked pichai how vulnerable that is to a recession. >> we definitely see uncertainty ahead, like everyone else. and the good thing is we've been around for a while
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worked through past moments like this, 2008, or the early days of the pandemic and we take a long-term view obviously when you're serving across the economy, you know, and a lot of the macro economic factors like gdp growth end up -- advertisers spend as well. but a lot of like what you saw today at google io, investing in ai, the largest nfsz investors of r&d in the world and we take a long-term view and we work hard to make our products better, so, you know, i think for me, the work we are doing today will pay dividends two to three years out. that's how i approach it. >> when you say you're seeing uncertainty. we got inflation numbers, some saying it suggests a peak. are you seeing the same thing in the data that google has, the travel data, the purchasing, the ad spend >> we definitely see travel recovering, you know, there are signs that people are clearly
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moving past the pandemic there is some return to normcy, but what gives uncertainty, there are so many different factors, be it rising energy prices, and trying to add all of that up together is -- >> does the data you see suggest that we're at a peak, are you optimistic >> i think it's going to take time to work through a lot depends on -- i don't think people are seeing relief in certain sectors but any other new areas which are showing problems, due to supply chain constraints but i think it's going to take us some time to work through this. >> like where, new areas >> you know, just energy has been an issue, as an example, in some cases rentals have gone up, and you know food prices it's a complex factor, particularly globally. >> at ie you've had a number of
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announcements. you're going to be spending more you're still a $1.5 trillion company, your workforce is now more than 150 people strong, google are strong. how nimble are you as a company to continue to see this economic slowdown, when would you start to consider scaling back plans, would you be able to quickly >> well, i've always, you know, prided our ability to be nimble when needed. as a company we want to be resilient in moments like this we are very excited about the opportunities ahead, and to we are investing. we are continuing to hire, bringing in great talent but the areas where we were seeing a secular transformation, like cloud and the transformation -- we are continuing to invest, but we'll obviously -- given the uncertainty, paid close attention to it, and as a company we need to do something differently, like we've always done, you know, we do this
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responsibly. >> what do you think it's been -- what do you think -- what makes your strategy different than some of your peers that you're able to hire 12,000 people this year, you're able to spend almost $10 billion in the structure, why do you think you're in this position versus the other companies that are coming out and saying that they're going to have to freeze hiring plans or do layoffs >> well, considering the stock, all of us are impacted in varying degrees. i think we are -- you know, we invest in foundation technologies, and we are in many areas, in some areas we are diversified. we have important products like search and youtube we have computing products involving android play and our hardware devices, and cloud is a big opportunity for us as well so i think we are exposed to many sectors, and we do this globally as a company. i think that allows us to take a long-term view and work through these spaces. >> you guys spend a lot on
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research and development i want to talk about some of that diversification because alphabet is a company of many differentbusinesses, you also touch on many different societal issues. so i want to talk about some of them, how they fit in today, how they fit into alphabet's future, developers first, since we are here at io how do you manage it, app store dynamics, does google deserve to continue to take a fee for the developer, or is something changing here, is that era over as match and some other companies have argued that it should be? >> look, it's an important area, and we've been listening and we want to make sure we get it right. i think it's important to remember, we invest in android, for free both to oems and carriers, and, you know try and make phones affordable and we invest a lot in keeping the platform secular and we give the distribution, with built-in payments to reach.
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and, you know, for the vast majority of developers, you know, pay reasonable fees, and, you know, around 15% or so, and but i think it's important for that, for us to continue investing in the platform too. i think we have struck the right balance, we're constantly looking how we can add value to developers and there are so many developers who are -- who have embraced the model investing on the platform, but these are important conversations. >> you say that you provide android for free, do you mean to the consumer >> to the consumer, oems, we invest in thousands of engineers, and the operating system for free. >> but it's what the developers pay in terms of those fees and commissions that allow you to provide that for free. >> that is part of our business model, yes. >> exactly what happens if those fees go away, is that why you don't think they ever will go away because they're important to keep the ecosystem going >> we provide an economic value there, and i think through
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foundational economics in terms of the value but we've made many changes to our developer programs we've made a lot of changes, and i think, you know, we've brought many developers on board i think we'll be able to navigate the transition well. >> let's talk social media next. we watched youtube's growth and how quickly it has been growing although we saw that decelerate a little bit the past quarter. what does free speech on the internet mean to you >> well, i think, you know, free speech, hey, i've always viewed it as foundational i group up in a large democracy, and, you know, the importance of free speech, and giving people a voice, i think, is really foundational as google, you know search is one of the products, search represents what's on the web today. we -- we only take down stuff that is against the law, and so the core principles of free speech are deeply built into the platform. >> sounds very similar to how elon musk describes free speech, in that they will only comply with the law would you say your approach is
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the same as him or help us understand how your strategy may be different. >> i can talk about our approach it's on a strong principle of free speech. we comply with laws and regulations. we also have, in the product like youtube, where we recommend, and where we can amplify content, you know, we do have community guidelines. so we have clearly stated policies, and we, you know, take action, and that's what actually allows us to maximize free speech help keep the platform safe for everyone involved. and i think there's a balance to be struck there, underlying all of that is a strong commitment to free speech and, you know, that's how we approach it. >> how closely have you been following or not following what elon musk has been saying how he might run twitter, how might that change the landscape for you, how much are you thinking about this >> you know, i'm an avid user of twitter. i think it's an extraordinarily important product for the world. i've gotten a rot out of it.
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there's value in investing in it for the long term. i think that is important because it plays an important role in democratic society i share that view and, you know, i'm -- you know, i would like to see the product continue to get better and so, you know, that's what i think about. >> if he reverses the ban on former president donald trump, how does that change or not change the calculus for youtube? >> i mean, these are different products, and, you know, we -- we have -- we've always had policies, and we apply them consistently regardless of who it is, and we have deep experts who look at it, and we'll continue making our decisions. >> and how does ai shape i know you spoke a lot about that on stage today. and this whole idea of maybe open sourcing a social network, like twitter or youtube, do you think that would help counter some of the free speech issues in our society today >> well -- >> or to amplify them? >> well, i think, you know, i
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think -- i think it's important to give people a sense of transparency and, you know, there are many ways to accomplish that. and for example, we publish our community guidelines, or in the case of search how our raters evaluate search quality, we publish that publicly. there are different ways to approach this, and i think it's important to do it in a way in which spammers and others who are trying to work around the products and aren't able to do so as well i'm glad there are different approaches being discussed. >> privacy is another area being reshaped, being debated in public on "techcheck" we have jokingly said that regulators in chief are the eu and tim cook. what do you think about one company, apple, sort of unilaterally changing the privacy landscape as we've seen it done over the last year or so >> you know, i think there are many factors which are driving privacy. for me, i would argue that it is
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users evolving expectations, moving the privacy needle more than anything else, and, you know, users increasingly in a digital world, i think they are asking for privacy, and i think all of us need to respond to it. there's been extraordinarily important legislation like gdpr, and all of us have had had to work to comply with that, and you saw, as google, you know, we are helping organize information, make it better for you, that's part of that, there are products where we do that. g made photos, we never used that for advertising the products, we monetize with that pricing we give users clear choice, and controls, including more controls we announced today. so i think the way i think about it is people care deeply about privacy. it is going to constantly evolve and we need to stay a step ahead of that, evolving user expectations. >> people care deeply. people want more control around things like tracking and
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targeting. why has google not moved as quickly as apple in terms of third party cookies, when clearly, consumers are opting out of that kind of tracking on their apple devices. >> we did our -- we give consumers many choices, we clearly announced plans to, you know, phase out third party cookies, but there's a large ecosystem, and people use many services, including news publishers and content, monetized by advertising and so we are working with publishers, with regulators, to help drive this massive change across the ecosome, i think we are -- feel responsible to get it right. >> was apple hasty or irresponsible in moving so quickly without getting the proper feedback? >> i think they are coming at it from a different vooupt, and, you know, they don't operate products for publishers like we do they are looking at it
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different. i don't want comment on that. >> terms of your relationship with american lawmakers, last year you spent $10 million on will be bying, that is actually less than half of what you spent back in 2018 what does that tell you, is scrutiny easing, and the relationship getting better or has crypto replaced big tech as sort of the punching bag dl there's definitely a -- you know, i think internet and tech are playing an important role, and so there is definite scrutiny i think it's important congress passes legislation, i think the u.s. is behind on privacy legislation, we have long called for strong federal privacy legislation. i think there's important legislation to be done around children's safety online i think scrutiny is important. i think we plan to engage constructively and there are important issues where we engage on when you say, for example, making sure there is rural broad band, or making sure people have access to digital skills are all topics we
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lobby on as well, including the importance of free speech. and so i think these are complex topics and i think the next decades will have new rules for the internet we want to make sure we had perspective there too. >> when you talk about things like access to internet and language processing you talked about on stage today, have shown themselves to be so valuable during the pandemic. would you say the relationship has improved become more constructive with lawmake then in america. >> they respond to areas where we see doing good work around the pandemic. to help make sure we got message on vaccines out, or the work we are going to contribute to small and medium businesses. particularly training them on digital transformation there are many areas we see common ground. we also innovating as a company, you started asking about inflation. there are many -- as a company we lower prices.
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you know, tech is -- people take it for granted but year after year we provide the services we do and, you know, we in our own way contribute to making sure it's affordable for users, so i think there's a lot of areas of common ground as well. >> carl and jon, we covered a lot of ground. we got to more youtube versus tiktok, waymo, cloud, you can read more about it on the internet, on dotcom and we'll bring more of that tomorrow. but guys, one major takeaway was his consistency. when you think about ceos of these big companies not being sort of -- being nimble to what happens in the market, but having that long-term goal, it was clear sundar pichai is thinking about these, like he created chrome, making the big bet on cloud, not profitable yet, but they're not going to change that strategy because the markets are treating them differently. >> yeah, the -- you know, so
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many important areas, you guys covered, out of io, just seems like they've got a platform, several platforms, that are working for them, they announced immersive maps, they announced multi-search, there's this idea they've got this growing digital inventory, unique digital inventory that helps them to drive commerce, i mean, did you get the sense from him that that's part of what's driving his confidence, yes, he says that they're nimble, and there are rocks ahead but he didn't seem worried. >> absolutely. i mean, think about alphabet at the start of the pandemic. they were first to send their employees home they had all of the indicators, and that's really what io is about, that's what they're doing. that's why he talks about artificial intelligence so often, it is allowing them to do more with the enormous amounts of knowledge, information data that they have i like your point, jon, on commerce, right, because they are doing so much more in this area and as the nature of advertising changes, perhaps their business model will change along the way as well, carl,
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they still get so much of their revenue, about 80 #% from digital advertising, but the landscape is changing, so he talked about diversification he's talking about a subscription model he talks about how they'll never put advertising on something like photos. commerce is another area that they can get into. payments so, you know, all of those investments right now, for them at least, are intact he's building for the long term. >> speaking of changing landscapes, fascinating to listen to you talk to him about lifetime pans of trump over at twitter and what that means for youtube, i do wonder what his view is if, in fact, republicans take the house, or the senate, and how that changes the regulatory risk picture. >> yeah, it's a good question. he wasn't going to reveal to us what he would do, but a lot of what he said on free speech, guys, was kind of in line with what we hear from elon musk, he talked in broad terms but he believes, he says, that it is foundational, something that, you know, might play well with
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the republicans, allow anyone on, although he has had to make tough decisions, like jack dorsey, mark zuckerberg, in suspending accounts but he says the law guides him, so we'll see. i mean, i didn't necessarily want to ask him specifically about elon musk, but i think that his take over at twitter has ramifications for the most sensitive parts. the idea of amplifying or even suspending accounts there. >> nobody's anti-free speech of course not. but it's the asterisks, and those edge cases that you have to worry about, and he certainly tried to -- you put the question to her. >> and jo n, i know you'll be interested what he said on cloud. there was a report a few years ago that said that if google cloud wasn't number one or two by 2023, that's only next year, would they continue to do this, he said that he actually wasn't
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aware of any such reports and he was very adamant, as the cfo, when we talked to her, that cloud is a huge pillar for them. they are not profitable yet, like microsoft and amazon's operations are, but they see the secular shift as many do, so they are so committed to it and they have been bringing down losses, but back to io, what they announced, the artificial intelligence side, the security side, that's how they want to differentiate their product from some of the other competitors. >> yeah, training -- tens of thousands of americans in cyber, and security among other areas is a fascinating positive extenderality, fraet to have sundar pichai. disney is down 40 in the last 12 months shares falling again today, although they did bounce off of about 95 -- 99.5 we'll get more on that after this break
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impact of covid on theme parks in asia. for more on the quarter let's get to julia boorstin. it's tough to believe disney around $100 after everything we've been through that would seem like an unthinkable bargain a couple of quarters ago. >> yes, but there's so much uncertainty now. that's what we saw the investors react to yesterday, going into the call the stock was up a couple percent and then christine mccarthy talked about how maybe the outperformance in streaming subscription ads in the first half of the year was was not going to indicate similar outperformance in the second half of the year. maybe there was a pull forward i would note, jon, there are many, many, many differences between netflix and kiz knee, including the fact that disney has not completed its global rollout yet. but i think analysts and investors are trying to figure out not just will disney be able to hit their target of between 230 and 260 million subs by
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2024, but how valuable are those subscribers, when you look at the fact with hot star in india, that partnership there, those subscribers are less valuable. trying to really get to the heart of the profitability here, not just the growth. >> interesting, julia, you know, the streaming element is obviously topic "a" among a lot of investors if you look at the word count from the call, the most mentioned word was parks, followed by espn, followed by hulu they definitely want to push the idea that parks have leverage here. >> yeah, parks had leverage. i was really struck by the fact that they saw 40% increase in spending at the domestic parks, massive strength at the domestic parks, we'll have to see if that continues into the summer with inflation and all these other concerns, but i also want to point out what they were saying ant espn a number of times both in his prepared remarks and in the question/answer session he talked about the potential to bring espn more direct to
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consumer and how they're going to be watching various factors, including, of course, the strength of the bundle, as they evaluate how and when they can take that more direct to consumer, and a lot of that is because they see massive strength in their bundingle, not the paid tv bundle, but in their bundle o bundle of hulu, espn+ and disney plus, and having all those things together, they're able to generate less turn as a result of that. >> julia, there was a fun discussion on fast money last night. rich greenfield from light shed was talking about what disney could acquire. he suggested netflix because they are weakest in -- netflix is weakest in kid content. that combination could work. he also suggested maybe a roblox what do you think? would investors like that move, that focus on the streaming platform, versus where they are seeing the most strength right now, which is in parks >> rich always has fascinating ideas here, and he's a close
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watcher of disney. i will say one of the reasons he's making these comparisons, bob iger made these bold acquisitions, maybe disney under bob chay peck, the idea of what does the future of disney under bob chapek look like netflix is complicated, but i think that roblox is interesting because of the that is correct that it's focused on the younger demographic. it's a vastly different company. when you look at iger's acquisitions, they were about intellectual property, taking the brands, thing them into the disney platform and then exploiting those brands across platforms from parks to tv to movies roblox and netflix are different. netflix is a competitor to disney plus. maybe it doesn't make sense, and i would wonder from a regulatory standpoint whether that would be bobble, roblox is a gaming platform disney has moved into the metaverse virtual reality space way back with club penguin
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probably 15 years ago. i do think they are interested in the metaverse and trying to figure out how to get more into the gaming space but they may be able to do that without acquiring a roblox. >> julia, you point out there's uncertainty. but the last time kind of without that pandemic, you know, dump in consideration, the last time disney was trading here around $100 a share was back in around this time in 2018 where there was this huge question of, could it even make the transition to streaming? i don't know that they had even committed to doing that, and netflix looked like it was running away with things one of the few things, some of the few things that are certain, i would think, because that eventually people are going to want to go back to parks, people still love marvel. look at those numbers out of dr. string the multiverse of madness, disney seems to be a bastion of certainty, and disney plus looks like it's catching up tonette flix the stock is back at $100 a share, that's interesting.
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>> yeah, it is interesting, and jon i would point out that disney, traditionally, valued as a media company, netflix valued more like a tech company in terms of valuations and now we are having this conversation about whether those netflix valuations should come down more to media level valuations. but you're right in that disney does have those fundamental advantages, especially when you think about if you're going to go out to a movie, you're going to go to a disney type movie, a big budget movie, familiar franchise. but with streaming, we'll see how valuable those subscribers we'll see what price point, and how much the ad-supported version of disney plus is going to help them raise their average revenue per user, while also expanding that broader user base you make a good point about the differential in valuations there, jon. >> fascinating what a print, one of the ones we were looking forward to most this week, julia, thank you, julia boorstin. news update, for that, we'll turn back to christina.
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>> wholesale inflation rose 11% in april compared to a year ago. inflation remains elevated but the monthly gain of half a percent matched economist forecast and core inflation increased less than expected hyundai is recalling 215,000 midsized car due to faulty fuel hoses that can leak into the engine it covers 2013 and 2014 sonatas, previously recalled for the same problem back in 2020 bitcoin remains under the $30,000 mark, recovering somewhat from a broader selloff that erased more than $200 billion in value from the crypto market the digital currency had fallen under $26,000 for the first time since 2020 and other major crypto names like ether and light coin are down 25% each this week. apple is no longer the world's most valuable company, oil giant
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saudi aramco sure praszed with $2.43 trillion market valuation. deirdre, back to you >> christina, thank you. as we head to break, let's get a quick check on the markets, the rally losing steam, the dow industrial is down half a percent. the nasdaq composite underperforming. plus, take a look at shares of soft bank, they're down big this morning. overnight in tokyo, i should say, after reporting results, the vision fund reporting a record $27 billion loss in its last fiscal year aztec just got hammered public and private holdings. read more on we are back after this break
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insurance. dom chu joins us with a look at a stock viewed as a safe
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haven for a lot of investors the question is, where do they turn now >> that's the real issue for a lot of folks, and we're so interested in the conversation about consumer staple stocks to your point about apple, the market calculation has it north of $2.3 # trillion, it's still, by a large amount, the most valuable company in america, but it's now saudi aramco that's overtaken apple as the most valuable company in the world, maybe no surprise given the fact that oil and energy gas prices are surging. energy companies, even here in the u.s. like exxonmobil and chevron are going much better. from a contextual point of view apple shares having seen that move lower as you point out, remember at the peaks we were nearly worth just around $3 trillion we've lost roughly $600 billion worth of market value since then to put it in context, it's like losing an entire -- somewhere in
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between meta platforms and berkshire hathaway with regard to performance, versus the broader tech sector overall and maybe even the brotder market in general. over the course of the last year, you can see apple handily outperforming the technology sector, and the s&p 500 as well. looking through the lens of etfs what will be more of a concern is whether or not this white line starts to then underperform, hypothetically, at any point, the tech sector, or the market overall and the reason why a lot of folks are looking at that is encapsulated pretty well by the folks over at data trick research, that's nicholas collis, and jessica rab over there in one of their notes to clients, they talked about what it would be like in terms of apple's price action, if it were to start underperforming this is an interesting one if apple does eventually get caught up in a massive global downdraft that's one sign we're
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at an investable low that's curious, giving up on apple with its global market share, long term track record of profitability and the fortress balance sheet is something like the give up on america trade from 2009. so at least the folks at data trek are looking at this as a possible tea leaf when apple tends to underperform the broader market where do analysts stand rite now, guys? it is still predominantly bullish. the average target rice for apple is $189.03 that implies a 30% rough gain there, and by the way 74% of analysts have a buy rating on apple right now. back to you. >> we should be hoping for apple to underperform if we want to see a bottom that's complicated dom, thank you. >> you got it. coming up, where bit down could be headed next, in about 29,000, almost 400 stay with us
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gut check on bumble today. shares on the rebound today following q1 earnings, a beat on revenue and eps, the number of paying users increasing to 3 million souls but the guides breaking a few hearts coming in under consensus for the current quarter. a few firms on the street take a step back. jefferies all cut their price targets, cowing is upping theirs to 38.
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bit down continues to fall while multiple stable coins are below a dollar when you talk about the stable coin piece of this, walk us through why a potential run on a stable coin or run on a stable
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coin would actually result in larger crypto contagion. >> the stable coins are really important to the crypto market in general traders use them to get in and out of positions quickly, instead of cashing out to dollars, and getting off exchange, they sit on the sidelines in either -- tether is the biggest, that's the one people are now watching for potential risk, and a bigger risk than we've seen with terra, the third largest, and at love people were buying it because it came with this 20% yield tether is the one to watch, it's now at 99 cents. lost the peg before, that's the big question, and people are saying that's a bigger indication of if the market can stabilize, if it can hold onto that, that's a huge thing for market sentiment. >> something we've talked about the yields the finance and other platforms pay to hold tether is that in danger soon >> this is the big thing with stable coin that dropped its peg to about 20 cents.
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that's the one collapsing this week that was offering about a 20% yield. so there are these incentives to buy in, the question is, we haven't seen a test like this in the markets and this is really all of these are economic experiments. >> it continues to play out. >> it does. >> we'll see what happens. kate, thank you. still to come on the show, more from my interview with sundar pichai, and his comments on tiktok. don't go away. welcome to your world. your why. what drives you? what do you want to leave behind? what do you want to give back? what do you want to be remembered for? that's your why. it's your purpose, and we will work with you every step of the way to achieve it. at pnc private bank, we'll help you take care of the how. so tell us - what's your why? ♪♪ your record label is taking off. but so is your sound engineer.
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sewn owes, delivering a beat across the board. second quarter revenue up 20%. supply chain issues fueled by covid lockdown in china will last at least through end of the year that's putting pressure on margins as well. it doesn't seem to be weighing on the stock shares up 15% this morning, putting it back at friday's levels more tech check in a moment. - hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly.
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welcome back groundhog day for roblox shares. today, it is up about 19% right now, putting it like sonos back at friday levels strange trading after profitability missed expectations. strange trading overall today, jon the nasdaq turned negative, down four-tenths of a percent more from our interview with sundar pichai. we spoke about youtube, it is 11% of the total revenue
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they missed street estimates, as tiktok continues to dominate the short form video space i asked him how big a threat tiktok is. >> to me youtube, people forget it was shot from video, right? users evolve to newer places i think there's real excitement around what is culture from video. and to me what's exciting, it is a big area, we are seeing a shift in the platform. creators are responding, users are adopting it. so we definitely see strong growth youtube through the pandemic turned out to be more important platform than we ever imagined we have to respond to what users ask for, trying to give them the best experience. so we feel challenged to do
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better, that's how i would think about it >> is tiktok a threat, do you think of it in those terms >> i think there's always going to be now having been on the internet for two decades, you're constantly going to have new services come, people will use that things like snapchat, those didn't exist a few years ago >> how much opportunity there is for innovation, creating new things shows how confident and vibrant the underlying sector is so for me, it is more evidence of that. as companies, you always have to be nimble, be able to adapt. that's how it feels every monday when i come to work. >> the tiktok piece is different, it is owned by a chinese company. i lived in china number of years, i couldn't access google. i had to log onto vpn even to get g mail is there a double standard tiktok has grown unfettered in
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the united states. it is so popular now do lawmakers have your back, have american companies' backs letting chinese companies grow so largehere while our companies are banned there >> i go back to an earlier point, part of it, it is important congress tackles, and the industry has to play a role on privacy and children's safety the more we have clear rules and frameworks which applies to everyone, i think that's how we can make progress on that. >> do you think lawmakers should be harder on china, given a clear distinction, that bifurcation between the two countries, standards that our companies are held to versus theirs. >> the way i look at it, we have an opening for that. as a company, we strongly believed in an open internet i think that foundation is
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important. the u.s. should work to maximize open interconnected internet and as part of that, making sure people as users are protected. i think those are the two main responsibilities in terms of how i think about approaching it >> guys, he was not going to bite on the china question and double standards, even though that clearly exists. but the fact that we are talking tiktok so often, meta doesn't hesitate to talk about the competition. he is talking more about their version shorts it is becoming and continues to be that elephant in the room for all streaming platforms. >> he is the ceo of google, but knows how to deliver a sub tweet. comparing tiktok to snapchat and pinterest, nobody sees as a threat to them, and tiktok shows it is competitive out there.
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>> the ft has a piece of china, saying they'll limit citizens going abroad, adding to that growing sense we are winding up with splinter nets, pieces of internet around the world. something to watch in the months, quarters, years ahead. we have the disney printout of the way. markets are shooting for the longest weekly losing streak in more than a decade let's get to the half. >> carl, thanks so much. welcome to the halftime report front and center, the unsettled market, whether stocks are ready to rally or ready for more wreckage we discuss with the investment committee. joining me today, jenny harrington, josh brown, jon najarian, with me here, jim levinthal. i want to check the markets. we have taken a turn downward. s&p 500 is off by a little more than 1%, a


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