tv Tech Check CNBC May 13, 2022 11:00am-12:00pm EDT
steak house. >> kate rogers, thank you. that's going to do it for us here on "squawk on the street," and that's going to do it for me for the next couple of months, "techcheck" starts now >> see you soon, morgan. good friday morning, i'm carl quintanilla with deirdre bosa, jon fortt, and julia boorstin. where does the deal stand? is this a live renegotiation taking place over twitter? and what does the sec think? jon, a lot of discussion about whether or not it's a better price for twitter, whether it's trying to stem the losses in tesla stock, or maybe both. >> maybe all of it, i mean, the currency he's paying with got weaker, tesla stock and then the comps on twitter, other internet stocks also got cheaper, he's going to do buy something for a premium price with a kind of
weakened currency. that's not a great deal. so, you know, maybe he's looking at bots, but i don't think a lot of people believe he's looking at bots. he knew that bots were a problem to begin with. it's one of the things he wants to fix, right julia, that's going to make this a gigantic deal where he's going to grow revenue, what was it 5 x in just a few years? >> yeah, grow revenue 5x, and also expand that twitter user base to nearly 1 billion users that was his plan there. but i think that you're absolutely right to focus in on the valuation of the company and the differential between the 44 billion that musk was going to pay, and where the stock closed yesterday. i mean, there was a $9 billion differential in market cap between where the stock was last night before he sent out that tweet this morning, and where -- what valuation he had offered to pay for the company. i think you have to look at maybe musk is not just reconsidering his options here in terms of whether or not he might be able to pull out of
this, and pay the $1 billion break-up fee, but maybe he wants to renegotiate a lower price and try to figure out what his optionality is there but the fact that tesla shares had declined by a third in the same time period is notable as well don't you think, dee, that he's calculating all these different factors? >> well, his tesla shares also, his net worth, it's all baked into each other, honestly, guys, when i read this tweet this morning when i woke up early on the west coast, i thought it was a joke like literally a joke, that he was just being sarcastic and it didn't really mean anything but of course there is short-term collateral from anything that he says and it is starting to look more and more like some kind of manipulation, right, he could walk away if he doesn't buy twitter at all with $6 billion in cash that he sold out of tesla at the peak or at a very high level so it is very, very difficult to discern his motives. but something that's a joke from a elon musk, he's too smart for
it to only be a joke we'll see how this all plays out. but carl, i know you tweeted this morning that note from gordon haskett saying we don't see that tweet being worth the piece of digital paper it was printed on i've got to agree. but even so, there's ramifications. there's going to be collateral. >> indeed. and julia, it sort of goes to the way the deal was structured, and what m&a bankers had been whispering ever since it was announced. it remains simple for him to change his mind with that breakup fee to be sure, but nothing beyond that. >> yeah, we know he can afford that billion dollar breakup fee, but dee, i have to disagree with you, i don't think of this as a joke i think musk was being very strategic and i think it's also worth noting that when he sent out this tweet saying it was all pending confirmation of the number of spam bots he shared an article from may 2nd i mean, that was ten days ago, a week and a half ago, and that was an article about when
twitter disclosed the percentage of spam bots they have i think he's trying to cover himself here, although we do have to remember that he did forego the opportunity to do due diligence on the company so he may say oh, i'm going to back out because of this issue, but from a legal standpoint, he still could be held to it because he did choose not to take the opportunity to do the due diligence into the company, which makes him sort of more responsible for actually going through with the deal. so i think musk knows what he's doing here, and i'm sure his lawyers are whispering in his ear, which is why he sent that other tweet, saying he is still planning ongoing through with it. >> right julia, it's obviously an ongoing story, we'll chat with you in a little bit about it. for more on musk's twitter, and what his real motivations may be let's bring in ron james co-editor, the bot issue, the spam issue is not new. >> the first thing, if anyone is the least bit surprised about what any of this, you have not watched how elon musk operates
over the last few years, part of my honestly believes he's a little jealous he's not been in the headlines the last few weeks, his growth stocks are collapsing, and we're all talking about luna so he's pushing himself back in, but also let's remember how genius he is at twitter with two tweets, tesla stock is up 6% and twitter stock is down 10%. so think about the leverage that gives him into this deal simply with those tweets. and as you are just saying, the spam bot issue should be a nonstarter he waived his rights to do due diligence and even more importantly the spam bot issue he's saying he wants to try to fix it, but he has all the internal information he needs. he can get anyone on the phone at any time. so clearly this is a negotiating tactic. >> yeah, it's a rough one, though, ranjan, i'm looking at snap, it's at about a $40 billion market cap, so it's a decent comp to twitter
snap is down 30% in the past month, and elon was already paying a premium for twitter in his proposal so, i mean, when the value of your target goes down that much, it's kind of like saying you're going to buy a house and you're going to get into a contract and you're like, oh, i don't know about those cracks in the sidewalk, and some of those teenagers who like to loiter around the corner store. i mean, come on, you knew that already, but at the same time, i mean, the money is what's important for investors to watch here, and we can see what's happened to the overall internet stock cohort, and we can see what happens to tesla. >> yeah, i mean, so this is very important, there's two parts of this, there's the twitter share price, which as you said, 100% correct, every public market comparable has collapsed i mean, amazon's down 40%, apple's down 20% the blue chips are down. clearly the price should be
lower, but musk committed at 54/20. i still think the bigger issue is around tesla shares, he's been trying to diversify a way from being responsible for the sheer volume of his own shares collateralizing loans, of him having to raise his own cash, 19 investors are committing 7 billion. jason -- they're trying to raise extra money so it doesn't affect external shares but tesla the company is facing a number of head winds tesla shanghai was closed. now producing potentially 200 cars a day to reach 1.5 million cars is an almost impossibility. the ford f 150 just came out with amazing reviews at every level, consumer demand isn't waning tesla is facing a number of head winds and musk has to focus on tesla stock, not just the twitter deal as you see, it's up 4% today this is part of this entire
strategy. >> so then ranjan i wonder how far back does this go? elon musk was aware of the issues you just brought up when he made this bid do you think he wants twitter at a lower price, or do you think maybe he doesn't want twitter at all, he wants that cash from tesla that he already cashed out? >> i mean, i actually think this goes back to the funding secured tweet from a few years ago, one of the key developments this week, two days ago a judge ruled that the initial tweet was inaccurate and reckless during -- related to a shareholder lawsuit. the walls are closing in from the s.e.c. on that side. there's the s.e.c. investigation into how musk purchased his twitter shares there's the inside trading there's so many investigations going back to the funding secured that i think musk is trying to make a move here to reassert himself that i can tweet anything i want, i'm going to show it, and everyone should fear me, especially the twitter board, twitter shareholders in
negotiating any deal like this and i think again the s.e.c. investigations are going to be increasing, and he's going directly against that, and he's making a show of it right now. >> all right, ranjan stay with us, want to take a turn here, and look at a firm, shares are spiking this morning after the company reported a smaller than expected loss, a beat on revenue, you can see it up there 21%. the fintech space has been hit hard, worries about rising rates hit high growth tech but the ceo max -- isn't worried. >> if you look at cost of capital for us, it's still lower than it was in 2019, and so the rates that are changing as the fed tries to battle inflation have not been a real impact on cost. >> all right, so despite this morning's move, the stock is still down since the beginning of may not only that, i'm looking at
it, what, it's down 85%, i think, you know, for the past, what is it, year to date, it's down a whole lot carl -- >> it's hurting. >> yes this has been a difficult time for fintech in general but it doesn't necessarily mean that the underlying thesis behind these companies is falling apart. it might just be a valuation reset. >> sure. and then you've got the reversal of the credit tail wind, now in credit provision ranjan, i wonder, we've talked about credit risk with buy now, pay later for several quarters now. how do you think it's fitting in, and is the market resetting the valuation in line with what we think the consumer may end up doing? >> yeah, i mean, if we're looking at today, growth is saved. growth is -- a firm is up and suddenly maybe we've hit a bottom the question is, are things cheap, bill gurley tweeted a
week ago he was on the show last week talking about this, it's 70 #% down, zunt doesn't mean a stock is cheap i keep thinking about that, again, a firm down 85%, does that mean now it's time to buy and as of this morning it looks like maybe we've hit a bottom. maybe a stock is cheap, but i do think buy now, pay later is one of those factors of this entire economic story that could be lurking as a problem i mean, a firm, one of the biggest customers of theirs was peloton. peloton clearly is not doing great. >> ranjan, i'm starting to think you can't pay it with the same brush stroke they're using different technology max levchin talked about this for years. i interviewed him fireside years ago, pre-pandemic, preaffirm being a public company he used that old analogy, when the tide goes up, we'll see who's been swimming naked. affirm has always put the
emphasis on the technology the ai they're using to judge credit worthiness. we talked about that, that they won't grant the loans if the technology says this isn't a person that can pay it back. do you think that others have the same access to technology? levchin knows this better than anyone does another fintech put as much into it or are they granting loans to a wider group of people when times are good and when the tide goes out, those are the guys swimming naked? >> yeah, i mean, the first -- we're still betting the technology actually works. i do think in any kind of highly volatile situation the idea that some kind of algorithm is magically going to allocate credit on a smarter basis is not the safest bet the entire 2000s and the entire economy around collateralized debt and mortgage backed securities, everyone promised
the exact same thing credit markets are the most complex to try to allocate capital on this, when you're doing it to consumers, when you're doing it to everyday purchasers, and putting your checkout option on every e-commerce site, i do think the level of complexity gets so distributed -- >> true. >> in the way that mortgage backed securities did in the 2000s. i do think i would not put faith necessarily in the technology and ai as being promised, even by max levchin. >> ranjan, it's a different bet now. affirm was above 150 back in november, right, now it's at, having a great day at 2171 a share. it's $6 billion in market cap right now. so in a way if affirm survives at all, right, it might be a decent bet at a 6 billion market cap. buy now pay later as a challenge
to the credit card system of dealing with consumer debt, all of that stuff, it's a pretty good idea. so it's either a total bust, or maybe it's not a bad buy here, especially compared to where it was at 151. >> yeah, i mean, if you loved it at 150, you're going to love it at 21. but that if question is the question going back to gurley, 70%, 80% off doesn't mean cheap at some point it's worth we start looking at the drivers of the economy, when consumer demand rebounds, yes, we should start looking for who are those winners, if you're an investor, you should definitely start deciding who you think the winner is going to be. but, again, especially a technology like buy now, pay later, i think is so unpredictable, and it is so, you know, responsive to waning consumer demand that it is uniquely volatile. it's uniquely potentially going to get hit by any kind of
downturn. >> ranjan, appreciate it, interesting quarters ahead as we monitor the strength of the overall consumer talk toon. ranjan roy. >> thank you turn now to the crypto meltdown bitcoin is bouncing back today above 30 k after taking a steep tumble earlier in the week still down 15% since monday. the volatility comes as we see a shakeup in stable coin, terrausd falling, tether crashing well. joining us to discuss, nick carter, the co-founder of coin metrics. great to have you, nick. we've been trying to get at this question all week, what's happening in stable coin's mean for the broader crypto market? and to me this isn't bnt tether truthers taking an unwarranted victory lap oralgorithmic stable coins versus better backed one it feels like the industry to self-police.
it feels like for years we've been told crypto, is better because the incentives are better, but what's happening with terrausd, how is it not a black eye for the entire industry >> it's one of the worst scandals it's a gigantic black eye. we're talking $55 billion of paper wealth wiped out, and obviously less in terms of in flow is destroyed. you're looking at a similar scale to layman brothers, of course not with the systemic effects. ust wasn't as integrated into the real economy, partially integrated into the crypto economy. not as systemic. you're looking at a similar skill to the madoff ponzi. these ideas were fundamentally unsound, fundamentally unsound economic ideas all you have to do is have an appreciation for economic history, for central banking, for monetary economics and you'd know that model couldn't possibly work and yet it swelled to an inordinate size.
the research desks in the crypto industry were uncritical, a huge number of funds were involved in this it wasn't just confined to retail, it wasn't like some of these other ponzis, like plus token or bit connect that were confined to retail these ideas were popular, and very few in the crypto industry spoke out about them so it's a black eye, you know, it's obviously destroying a ton of wealth, it's affecting the other assets but it's also a massive, massive black eye for the credibility of the crypto space and it's a huge shame that this trend spired, and it got so big before it collapsed. >> right, i appreciate those candid terms, nic. i know that there weren't a lot of loud skeptics you were one of them, though, if you cared to listen very closely. people like mike novagraz, and galaxy digital, they were the backers of this. where do they go now if this was a madoff scaled scandal, how does the industry recover from this? how long does that take?
>> it's going to be tough, i think. this is going to induce stable coin regulation. i think congress is going to take a look, to the extent congress can galvanize itself and do anything. i think financial regulators in the country are already aware of it sec was already looking into luna, terra, already were. it was already on their radar. what can they do about it? this is more challenging, it's a korean project, offshore the leadership is in korea or singapore. but i think what we can do as an industry is acknowledge, you know, the fee backed model, the fully reserved model, that actually works very well we don't need to try and undertake financial alchemy, and create an undercollateralized stable coin with volatile crypto collateral, or the model that terra had where it was very recursive, and backed by an equity token and linked to the
system it didn't make sense we can acknowledge these ideas have failed. unbacked, or share -- have failed since 2016. new bits first failed and then there was a string of subsequent failures we've enever seen success there. the default model of the stable coin where it's convertible and fully redeemable on demand, you know, tether has a lot of issues, but it continues to work well, it's regained its peg, the redemptions occurred yesterday, normally usdc, i would say, is the gold standard for a stable coin these work just great. so let's stop trying to, you know, engage in this alchemy, and, you know, return to ideas that make sense, and return to products and protocols that work that's a first step here, is to abandon these bad ideas. >> yeah, which is why it was so interesting to listen to yellen talk about stable coin regulation earlier in the week, and see all those heads nodding
at the house in washington i guess the question is, do you see regulation coming soon enough to limit even further damage, and to the degree it's systemic, to limit even further systemic risk? >> well, the folks behind terra tried to make terra systemic, and some of us pointed this out ahead of time. that was the whole point of them making overtures to the bitcoin community, buying bitcoins, buying several billion dollars worth of bit koib to ostensibly back the peg which doesn't make sense, obviously, you get a huge asset liability mismatch by doing that but that was the whole point was they tried to make ust systemic. it was cynical in my view, and they made overtures to other communities within crypto. thankfully ust wasn't around long enough to sort of really percolate out into the broader industry, you did see some lenders putting client funds in these things, which is incredibly perturbing.
there were some financial products on these things there was a degree of contagion, thankfully not enough for the most part. it was limited but yeah, i think that all of the, you know, spillover effects for the most part have, you know, become evident i wouldn't see -- i wouldn't anticipate any further damage from this beyond second order effects, like regulation, and, you know, maybe some insolvent funds and things like that but for the most part, all of the wealth here has been destroyed, you know, there's no further that luna can fall, frankly. >> right, yeah, that's right nic, thanks for being with us today, great insights breaking it down. talk to you again soon nic carter. >> thank you. >> this hour, robinhood has a new investor more on alphabet's plans, former twitter board member and media investor, peter chernin.
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gut check on robin hood. picking audiotape a 7.6 stake in the platform for $648 million the head of one of the world's top crypto exchanges, becoming robin hood's third largest shareholder. he doesn't have any plans to take action according to a filing with the sec. maybe he's just diversifying, calling it, quote, an attractive investment, saying he could potentially review a variety of options for enhancing stockholder value if circumstances change, the news coming after robin hood hit an all-time low on thursday, closing the day down about 77% from its july ipo levels, but shares surging this morning on that stake, now up about 25%, taking it, carl, to the levels from may the 4th. >> meantime, jon, let's get over to julia, joining us with a special guest. hey, julia. >> good morning to you, carl, again, that's right, we're joined now by peter chernin, the
group announcing it was leading a $260 million investment into a toy company, with bob iger, who also invested, advising the board. but before we get to that deal, peter, we want to start off with the fact that you are a former investor, and former board member of twitter. you left the board in 2016, but with everything going on we lon musk, and with your long standing understanding of the company, ifr to ask you whether you think twitter would benefit from musk's ownership and leadership. >> first of all, good morning, julia. secondly, as you said, it's been six years since i've been on the board, so i probably have fewer insights than you do i guess what i would say in answer to your question is, in my opinion, the single biggest weakness of twitter over the last six or seven years has been lack of product innovation you know, it's largely -- i'm a big twitter user
i find it to be largely the same experience it was six years ago, and certainly i think -- i'm not sure he would be a benefit in every way, but i think as a -- in terms of product innovation, which i think is, in my opinion, the single biggest issue with twitter, i think there is a chance that frankly almost any management would be -- you know, would be a positive. >> peter, you have quite a sense of consumer behavior, and have invested in a number of different products, specifically many for these microaudiences, you know, big devoted fan bases, but not necessarily the mainstream i'm wondering if you think twitter can ever really be a super mainstream product with the nearly 1 billion users that musk expects it to reach, and especially if people are going to be willing to pay for it in a big number, if you think the subscriber approach he's taking would work. >> i certainly think that it has the potential to have much further reach than it does i don't think it has -- you know, it's not a social network.
it doesn't have that sort of social connective fly wheel. but as a large scale essentially media platform, i do think it has a lot more potential and so, yeah, i'm not sure whether i know if it's a billion dollars or not as to the subscription question, look, thog's impossible. it is very, very difficult to transition free services to subscription without a major product innovation so i think their ability to monetize it through subscriptions, i think, will largely be a function. have they created additional products that consumers look at as value add, and probably start behind a pay wall, or start, you know, as a freemium, with a little bit in front of the pay wall, most of it behind. to me, twitter is all about product. i think it needs -- you know, i think it needs -- products, and you know that may lead to
subscription i think the current product, is there a subscription, you know, opportunity in the current product, i don't think so. >> it's all about the product, indeed i want to make sure we hear your thoughts on funco, and understand why both you and bob iger are so enthusiastic about this toy company why are you making this big investment >> on a short-term basis, it's a company that's growing almost 60% a year and we were able to buy it for, you know, give or take a six multiple, which is pretty good mark and bargain, even in today's stock market they've got a more macrolong-term basis this is one of the great pop culture opportunities. we hat tcg has been working on this a couple months we believe they have -- we think this is a pop culture monetization machine they have movies, music, sports
figures, anime figures, et cetera, and they have wide scale distribution on target, amazon, walmart, et cetera, et cetera. that feels like a good foundation to bigger company and as we were working on it, i said, look, who would be a great strategic investor and i immediately thought of bob who clearly has a lot of toy background a lot of pop culture background. i called him, he did some work on it and ultimately agreed with our thesis. >> it will be interesting to see how both you and iger advise that company going forward i want to talk about your role in the media space, in addition to the chernin group, these digital companies, and ownership of these different digital companies and you're also producing film and tv shows, you have a number of movies on netflix and in the works for netflix. what is your thought on the contraction in netflix subscribers? are you concerned about the screaming space?
>> i'm not concerned about the streaming space. the contraction in subscribers is i think, sub-1% not sure i'd call it a contraction. i'd maybe call it a slowdown in their growth but contraction seems a little strong to me you know, i think the thing that i haven't read in this whole discussion, which i wouldn't underestimate is, this is one of the great tech -- this is ar arguably the best tech firm in the media space. you know, they have extraordinarily smart growth marketing people they have clearly the best user interface in the business. and so i wouldn't underestimate their growth marketing chops you know, i think, look, nothing is a straight line up. but these guys are really smart data people, marketing people, consumer people, and i wouldn't underestimate them as for, you know, contraction in the streaming space, i don't believe that for a second. you know, i think that consumers have clearly, you know, everybody keeps talking about who's going to be the big
winner, the big winner is the consumer if you've gone back ten years ago and said virtually everything that's ever made is going to be available to you, for three or four, ten to $15 subscriptions and you can control what you want to see, when you want to see it, it's like oh, my god, that's too good to be true but i think growth in streaming is inevitable and i think for the individual streaming services, you know, is a race to scale right now, you know, clear lynette flix is in the lead on that disney is probably second. amazon's somewhere up there, but i think all of them have to keep driving forward because the business model is one of arace to scale you've got to have scale for it to be a strong business model. >> well, consumers are winning, and so are the companies that are producing content for all of those streamers right now, including chernin entertainment. thank you for joining us i hope you will come back soon and talk to us more about funko, about the media business and
also about the digital landscape. >> thanks very much, julia, bye. and julia, our thanks to you, fascinating take on the streaming landscape from someone like him, certainly that bull view let's get a news update. we turn to morgan brennan. >> well, here is what is happening. u.s. consumer sentiment falling to its lowest level since 2011 inflation continues to take a big bite out of americans' wallets, the university of michigan, the preliminary estimate of the index dropped to 59.1 in early may. that was down from a final reading of 65.2 in april it's a much larger dip than economists expected. cannabis posting a loss of more than $1 billion in its third quarter. the company attributing much of the loss to three facilities it plans to close in order to create, quote, a leaner and more agile organization hyundai is planning to build a $7 billion electric vehicle plant near savannah, georgia,
according to the ap, the south korean auto maker is expected to announce the investment during president biden's visit to seoul next week. and rivian issuing its first recall, covering 500 of its r 1 t electric pickup trucks, according to a filing dated tuesday, the company discovered an issue with air bags that could pose a safety risk to children sitting in the front passenger seat carl, back to you. >> okay, morgan, thank you. as we go to break, take a look at the markets here, at these levels the dow has roughly cut its point loss for the week in half. we were down about 1,200 points on the week, getting almost 500 back take a look at the ev space, tesla and rivian are up, along with many chinese players after china introduced incentives to promote promote auto sales which had fallen off a cliff over there.
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the nasdaq rallying so far to end the week. more than four hours left, of course hardest hit names are bouncing off the lows this morning, dom chu has a look at what's moving. hey, dom. >> what an important clarification. jon, you and i both know how volatile things have been. context for you viewers and listeners out there with regard to kind of where we've come from over just last 24 # hours or so. with invesco qqq trust we're roughly 26% below the highs last fall remember, we were over 30% lower at one point during the lows yesterday. watch that, and by the away, over this week, if you look at the lows that we saw yesterday, to kind of where we are right
now, at that low point yesterday, up until here, we're talking about a 6% gain just off those lows whether or not it's a believable bounce remains to be seen, but that's the reason why we take a look at stock that bounced the most in that nasdaq 100. we ran a stock screen, looking at the nasdaq 100 components, and looked at all of them that hit 52-week or worse lows just this week alone, and then how many of those have bounced at least 10% off the bottoms there. the list is actually pretty interesting. these are the volatile names on the downside and the upside. check out these names, airbnb from the inter-day lows, up 11% until right now. netflix is up about 11%. zoom video is up 17% z scalers up 19%, and docu sign is up 21%. if you're looking for the biggest bounce in the nasdaq 100 over the course of this week's inter-day lows, it's lucid
group. look to the evs, this is the chart over the last five days from the lows we saw yesterday, it's up a whopping 33% in that span alone so lucid group, ones to watch, and by the way, deirdre, if you're looking for that full list of the big bounces in the nasdaq 100, head to my twitter feed at the domino i've put all of them up on that list there send things back to you. >> we will, dom, thank you, those are some very big moves and it's an interesting list after the break we'll have more from my interview with alphabet ceo sundar pichai. 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. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire (all): all hail, caesar! pssst julius! you should really check in with your team on ringcentral.
when he expects waymo to have a mainstream ride hailing service in a major city like san francisco or new york. here's what he said. >> i think in the past we've tried to get -- i think safety is going to drive it, and societal acceptance is going to drive it we are beyond that pilot stage in phoenix in chandler, and people can use an app, and hail and use it so it's a service we are
providing there. san francisco obviously is denser, but -- and so there are more challenges. but i'm very confident that waymo is ahead of everyone else in that field, and -- but i think the progress will take some time, and we have to be patient. which as a company we are comfortable being so. >> many agree in the industry that you guys are way ahead. that's why i asked you that question do you think that it's five years away, more, or less, to seeing that adoption in a place, a dense place like new york city or san francisco >> in a dense place like new york where people are really using it, i would say it is five years away. >> five years, not ten though. >> safety trumps everything so, you know, i would let that be the guidance. >> right. >> you know, guys, it's a good point he has on safety, if you remember way back, that's what really derailed uber's autonomous vehicle, autonomous technology, ambitions was that accident that happened when they
had to suspend the project for some amount of time. it's rare somebody in the industry will put an actual number that's what i wanted five years, this has been a number that's been edited so many times over the years. his conviction, though, seems pretty strong. >> well, with the safety caveat. i wonder what that line is, how many years is it before it's just kind of like, well, who knows? but i also wonder what the economic case is going to be in five years, i think the economic case has certainly shifted over time, now, cars themselves are so expensive, the gas is expensive. even if it's driving itself, i don't know if that changes, carl, and then there are these rumors about apple also trying to come out with a car with no pedals, and no wheel how much safer, and how much cheaper would that be to operate? >> yeah, a lot of the reaction to your interview, at least from some of the desks today, was his stance around spending, and how he's not calling for a huge retrenchment, like netflix and amazon and meta, and uber.
>> yeah, it's a good point, and we're really starting to see, as the selloff continues, as the weeks go on, two different types of companies, of course lots in between, but those that do have to scale back that maybe didn't have that profitability in place, as we headed into this downturn, and the ones that did, like in alphabet, carl, that has so much cash on their balance sheet, and can afford to continue to invest, and keep those long-term plans in place. >> right, that's part of the game meantime, after the break we'll get a check on the chips, despite the selling to start the year, the i-share semi-etf about flat over the past 12 months
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welcome back shares of restaurant technology company toast up by about 12% at the moment kate rogers and i spoke with the ceo early this morning, post q1 earnings, talking inflation, productivity in the restaurant industry kate joins us now. what struck you from the conversation >> yeah, jon the main take away for me he talked about steady restaurant recovery, and that there's a lot of pent up demand and less lumpy recovery where we were seeing more consumers gravitating to one type of business or the other, on site, delivery, or pickup he said it is more even and there's a lot of pent up demand and sounded optimistic, upbeat. >> hear from what he had to say, particularly possibilities for expanding market connected to hotels
>> i didn't speak as much about toast for hotel restaurants, but guess what, there's 40,000 plus restaurants that sit within hotel properties and for years, customers have been telling us chris, can you interface toast with property management systems that run these hotel properties so that guests can enjoy great experiences. if i'm at the tiki hut on the beach, i can use toast to place an order on business, sprinting through the hotel, i can place an order on room charges easily >> people that are thinking of toast as mainly a point of sale, seems like they're moving to back office, not just payroll, managing all kinds of costs within small businesses as well. >> and that's on the extra chef platform he is talking about what some of the cost management system there, and he drove home the point of being a central nervous system for companies not just the front of house,
pos, it is all about how to streamline operations in front and back of house, get the kitchen moving, help with staffing one more thing he said that was important for investors to know, he says they're only in 7% of total addressable market now they have a lot of room to run he talked about the hotel partnership. another place he mentioned potentially moving into would be stadiums, you could see making sense. they're thinking big and beyond the toast that so many of us know as consumers, the pos system in restaurants, they're doing more than that now. >> maybe they can be deflationary for businesses facing labor and food cost inflation. thanks >> thank you. >> fascinating conversation. if you missed that or part of the show, follow and subscribe to our podcast listen anytime, anywhere, wherever you download podcasts tech check is back in a moment
at cdw, we get it's hard to keep employees productive when their work and home lives are busier than ever. well that's why we gave cyborg assistants to everyone in the company. they handle the "home" parts, so we can keep working. mmmm, delicious. shhhh, shhhh. you know at cdw, we can design a productivity solution with lenovo devices that offer fast, reliable connectivity to help your people manage their workloads, with or without cyborgs. perfect, 'cause this guy needs a little work. for technology that moves you forward, trust lenovo and it orchestration by cdw. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate
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30% since january alone. much has to do with multiple compressions seen on the graph on the screen. investors are worried. inflation eating into margins, china and taiwan covid lockdown, longer lead times. intel says the gpu launch would be delayed because of software issues and pandemic lockdown chip maker texas instruments, for example, one of the only ones to publicly announce their revenue would take a 10% hit this spring from lockdown. few others have revised earnings so what gives. what we're seeing is many of betting demand in storage and memory will offset weakness as the digital economy grows and everything becomes connected during its investor day, micron says memory and storage market will more than double to 330 billion by 2030, with data center as the largest segment. they announced quarterly dividend increase, shares up
today, but down, week to date about 1%, down 23% this year if demand for memory and storage doesn't cut it, price hikes will taiwan semiconductor plans for a second price hike in less than 12 months, and samsung is raising chip making prices by up to almost 20%, even as many predict the semiconductor shortage will ease later this year carl. >> we can hope getting conflicting signals from car makers as for next week, we'll get earnings from china tech cisco, and the big retailers. >> and today, what a bounce in some growth names that have been punished in recent i few days like this to get back what we lost
>> and chinese names alibaba, up 7% get earnings next weekend. some are saying looking at the potentially ease in covid policies, could be good for all of tech. has been in overhang >> and retail sales, one big mac row print. enjoy the weekend. let's get to the judge. >> carl, thanks so much. welcome to the halftime report scott wapner a big bounce for stocks. is it getting closer maybe it started we have our hands on an influential research note that says stocks can rally from here. we'll let you know the call and will debate with the investment committee. shannon, rob, pete najarian, and with me on the set, brynn talkington and steve